What is the primary purpose of health insurance?

The primary purpose of health insurance is to provide financial protection from health care costs. This means that health insurance helps individuals manage and mitigate the financial burden associated with medical expenses, such as hospital stays, surgeries, and routine medical care. By paying a premium to an insurance provider, individuals gain access to a network of healthcare services, reducing out-of-pocket expenses for necessary treatments and preventive care.

Health insurance is designed to protect individuals and families from the high costs of health care, ensuring that they can seek medical attention without the fear of overwhelming financial consequences. This financial cushioning is crucial for maintaining health and well-being, as it facilitates access to necessary services while supporting a healthier population overall.

While covering lost wages, supporting medical research, and promoting wellness are important aspects of the broader healthcare ecosystem, they do not define the primary objective of health insurance itself.