What is one key purpose of health insurance?

Health insurance primarily serves to reduce the financial burden of healthcare costs for individuals and families. By paying a monthly premium, individuals gain access to a network of healthcare providers and services, which significantly mitigates the high out-of-pocket expenses associated with medical care. It helps manage costs related to hospital visits, surgeries, medications, and preventive care, ensuring that necessary medical services are more affordable and accessible.

This emphasis on the reduction of financial strain allows individuals to seek treatment without the worry of exorbitant costs, which is particularly important in the face of unexpected health issues. Access to healthcare becomes more equitable when individuals are not solely reliant on personal finances to cover medical emergencies or ongoing treatments.