Which of the following is a common example of healthcare financing?

Insurance companies serve as a fundamental mechanism for healthcare financing. They play a vital role by collecting premiums from individuals or employers and then using these funds to cover healthcare costs when policyholders require medical services. This model allows for the spreading of risk across a large group of individuals, making it financially viable for people to access healthcare without facing overwhelming costs at the point of care.

Health Savings Accounts, charity care programs, and direct payment models are also important in the healthcare financing landscape, but they operate differently. Health Savings Accounts involve funds set aside by individuals for medical expenses and often require high-deductible health plans. Charity care programs help those in need but are typically funded through donations rather than a systematic financing model. Direct payment models involve patients paying providers directly without insurance intermediaries, which can limit access and affordability for many. In contrast, insurance companies create structured financial support to facilitate broader access to healthcare services.