The fundamental principles of health insurance

Health insurance is a solidarity-based scheme designed to cover the financial risks associated with illness. It is based on three fundamental principles: advance payment, the sharing or pooling of risks, and the concept of cover.

Pre-payment is the principle whereby the insured person pays contributions to the administering body before the risk materialises.

Risk-sharing or mutualisation allows the financial burden (the cost of healthcare) borne by an insured person to be spread across all contributors. Through this mutualisation, the financial burden is reduced and becomes manageable for the insured person who is ill.

Should a risk (illness) arise, the health insurance provider guarantees that the insured person’s medical costs will be covered.