How does Health care insurance work?
Health Care insurance works by spreading the cost of care among large groups of people—so insurance paid by one person also helps pay for the care of others. In a large enough group, most people are healthy and use few health services in a given year. A minority of individuals account for the majority of health care spending for the group. Sharing this risk is a critical part of insurance since it is likely that every person will incur an illness at some point, and many individuals suffer injuries or even become disabled.
In addition to spreading financial risk, health care insurance also improves access to health care services. Numerous studies have shown that, compared to those who are insured, people without health care insurance receive fewer options in health care services, or their care is delayed. Health care insurance not only protects individuals from catastrophic expenses, it also improves access to important routine, preventive and primary care services.
