What is the primary purpose of health insurance?

• A. To provide free healthcare for all
• B. To protect individuals from high medical costs
• C. To limit healthcare options
• D. To make healthcare unaffordable

Answer: (B)

The primary purpose of health insurance is to protect individuals from high medical costs. Health insurance helps to alleviate the financial burden that can be associated with medical care. When individuals have health insurance, they can access necessary medical services without facing overwhelming expenses. Insurance typically covers a significant portion of healthcare costs, including hospitalizations, surgeries, and routine care, which helps ensure that people get the care they need without the fear of crippling financial consequences.

By spreading the risk across a larger group of insured individuals, health insurance enables individuals to afford necessary treatments and preventive care, thereby improving overall public health outcomes. This protective function is foundational to the healthcare system, making it essential for individuals to manage their health without the stress of prohibitive costs.