What is the primary purpose of health insurance?

The primary purpose of health insurance is to provide financial protection against medical expenses. This means that when an individual has health insurance, they are safeguarded from high healthcare costs that could arise due to serious illness, accidents, or ongoing medical needs. By paying premiums, policyholders ensure that a significant portion of their medical treatment costs will be covered by the insurance company, which helps them avoid the potentially devastating financial burden of large medical bills.

Health insurance is designed to share the risk of medical expenses among a pool of insured individuals, which contributes to making healthcare more accessible and manageable for all. This financial protection allows individuals to seek necessary medical treatment without the fear that they will face crippling out-of-pocket expenses.

While other options mentioned in the question do have connections to health insurance, they do not represent its primary purpose. For instance, guaranteeing access to any healthcare provider relates more to network limitations and provider contracts than to the core function of health insurance. Improving public health outcomes can be a byproduct of having health insurance, but it is not the main goal. Similarly, while health insurance may have some implications for tax benefits (like deductions for premiums), the primary focus remains on providing financial security against healthcare costs.