What is the purpose of health insurance?

The purpose of health insurance is fundamentally to provide financial coverage for medical expenses. This coverage can help individuals manage the costs associated with necessary medical care, including doctor visits, hospital stays, surgeries, and prescription medications. By distributing the financial risk among a large group of people, health insurance allows individuals to access necessary healthcare services without incurring overwhelming costs out-of-pocket. This safety net enables people to seek medical assistance when needed, promoting overall public health and access to healthcare.

The other options do not accurately capture the primary role of health insurance. Regulating the pricing of medications is typically a function of government entities and market dynamics rather than a direct purpose of health insurance. Oversight of healthcare professionals is generally managed through licensure boards and professional organizations, which are separate from the roles of health insurance. Ensuring the availability of doctors involves a variety of workforce planning and educational initiatives instead of functioning as a direct purpose of health insurance itself.