What Exactly Is Health Insurance?
Health insurance is a plan that people buy into in return for coverage on all kinds of medical care. Most plans cover doctors’ appointments, emergency room visits, hospital stays, and medications. The idea behind insurance is simple: Medical care can be so expensive that most people can’t pay for it entirely out of their own pockets. But if a group of people gets together, and they each agree to pay a fixed amount every month (whether they need medical care at that time or not), the risk is spread out over the whole group. In other words, each person is protected from high health care costs because the burden is shared by many.
