What does medical insurance primarily cover?

Medical insurance primarily covers the reimbursement of a percentage of the policyholder's incurred medical bills, which is crucial for managing healthcare costs. This system allows individuals to seek medical care without bearing the full financial burden upfront. When a policyholder receives medical services, the insurance company typically pays a portion of those costs according to the terms of the policy, while the policyholder may still be responsible for a copayment or deductible. This arrangement helps mitigate financial risk and ensures access to medical treatments that might otherwise be unaffordable.

Other options detail aspects of healthcare and insurance coverage but do not accurately represent the primary function of medical insurance. Preventative healthcare procedures may have different coverage terms, including deductibles, and catastrophic events specifically refer to significant and often unpredictable medical needs, which do not encompass the broader, routine care that insurance generally supports. Additionally, the costs associated with purchasing insurance for healthcare providers do not relate to what medical insurance covers for individuals seeking treatment.