What is a primary goal of health insurance?

The primary goal of health insurance is to protect individuals from high healthcare costs. This protection is essential because medical expenses can be unpredictable and often substantial, leading to financial hardship for many people. Health insurance operates by spreading the risk of these costs across a larger population, allowing individuals to pay a manageable premium rather than facing potentially overwhelming bills at the time of receiving care.

This concept allows individuals to seek necessary medical attention without the constant fear of incurring unaffordable expenses. For example, with health insurance, a significant part of the cost for doctor visits, hospital stays, and necessary treatments is covered, making healthcare more accessible and sustainable for individuals and families.

In contrast, other options do not reflect the primary aim of health insurance. The notion of providing a profit margin for insurance companies is a byproduct of the industry but not its fundamental purpose. Allowing for unlimited healthcare usage could lead to unsustainable costs and is not a feature of health insurance plans, which often include limits and conditions. Lastly, while health insurance can influence and interact with healthcare regulations, the distinction lies in its primary function of financial protection for individuals rather than regulatory oversight.