Diagnosis: Health insurance

Health insurance,
 like other forms of insurance, is a form of collectivism

by means of which people collectively pool their risk, in this

case the risk of incurring medical expenses. The collective is usually publicly

owned or else is organized on a non-profit basis for the members of the pool,

though in some countries health insurance pools may also be managed by for-profit companies.

It is sometimes used more broadly to include insurance

covering disability or long-term nursing or custodial care needs. It may be provided through a

government-sponsored social insurance program, or

from private insurance companies. It may be purchased on a group basis (e.g., by a firm to cover its employees)

or purchased by an individual. In each case, the covered

groups or individuals pay premiums or taxes to help

protect themselves from unexpected healthcare expenses.
 Similar benefits paying for medical expenses may also

be provided through social welfare programs

funded by the government.

By estimating the overall risk of
healthcare expenses, a routine finance structure (such as a monthly premium or annual tax)
 can be developed, ensuring that money is available to
 pay for the healthcare benefits specified in the insurance

agreement. The benefit is administered by a central organization such as a government agency, private business, or not-for-profit entity.[1]