Why do we pay for health insurance?

I keep hearing more and more stories about health insurance companies refusing to pay for a procedure for various reasons like "it's experimental", and etc. So why do we even pay for health insurance, if they won't help us out with the more expensive procedures anyway? Or just the fact that they could deny us at any time as they please? I understand there's smaller but still expensive procedures, but I'd be better off putting my own money away for things like that. I just don't get it. Anyone?
--------------------
Well, first off, your assumption that they can "deny you any time as they please" is incorrect. Health insurance is a tightly regulated industry with very specific criteria and rules to follow. A person might not *like* it if they can't get covered for something that they want, but it doesn't mean that the denial was on a whim either. Generally, Medicare sets the standard for whether or not a new type of medical procedure is considered "experimental" or "investigational." (Meaning that if Medicare decides to allow the procedure, eventually most other private insurers make the decision to allow it too.) And that information is available well in advance of you deciding to have something done...each insurer has a specific Corporate Medical Policy (or whatever their company term is for it) about any procedure you could ever want done. And you as an insured member or any of your doctors have a right to see the policy *before* you have the procedure done. Some of the companies put the info right out for public viewing on the web, others will make the info available to you if you ask for it. Here's an example for one insurance company for one procedure. (Again, all insurance companies have documents like these for various procedures. Just using this one as an example.) http://www.medmutual.com/provider/MedPol… Right in this document, it tells you/your doctor what medical criteria you would need to meet to have coverage for this service, and it tells you that you need prior approval for the service. If your doctor demonstrates that you meet the critiera in the policy, then you get approved. If you fall under a grey area where you're close but not quite, they might request more documentation from your doctor. If you clearly don't meet the criteria, then you get denied. Pretty cut and dried. Now, I'm not saying that people are going to necessarily *like* the criteria they are being evaluated against, but that still doesn't mean that things are being denied "any time as they please" either. People need to be proactive in their medical care and find out about their rights/responsibilities *before* making decisions regarding planned medical care. (planned as in non-emergency situations) If you feel your insurer has made a decision in error, you have the right to see the medical critiera (Corporate Medical Policy document, or whatever your insurer calls it) that you were evaluated against, you have the right to see what medical records of yours were used as the basis of the decision, etc. Again...be proactive. (Aside from adding that info about how decisions are made, I agree w/what mbrcatz said about health insurance being a financial tool, etc.)
Source