History of Health insurance in Timeline
Health insurance is a mechanism to mitigate the financial risks associated with medical expenses. It operates by pooling risk across a group of individuals, allowing insurers to predict overall healthcare costs and establish funding through premiums or taxes. This collective funding covers the healthcare benefits outlined in the insurance agreement, administered by an organization that could be governmental, private, or non-profit. The core principle is to share the burden of potentially high individual medical costs across a larger population.
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