Which of the following is NOT an advantage of having health insurance?

• A. It provides financial protection against unexpected medical expenses.
• B. It can improve access to preventive healthcare services.
• C. It guarantees unlimited access to all medical treatments without any cost.
• D. It helps reduce the financial burden of major illnesses.

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the role of health insurance in microeconomics, which primarily involves risk pooling and financial protection against uncertain medical expenses.
2. Step 2: Identify the common advantages of health insurance, such as providing financial protection against unexpected medical expenses, improving access to preventive healthcare services, and reducing the financial burden of major illnesses.
3. Step 3: Analyze the statement 'It guarantees unlimited access to all medical treatments without any cost' and recognize that this is not a typical advantage of health insurance because most insurance plans have limits, copayments, deductibles, or exclusions.
4. Step 4: Compare this statement with the other options to confirm that it does not align with the realistic benefits of health insurance coverage.
5. Step 5: Conclude that the statement about unlimited access without any cost is NOT an advantage of having health insurance, as it misrepresents how insurance coverage typically works.