This essay sheds light on what is a broken health insurance system, demystifies why medical bills are often significantly more expensive for people who have health insurance than for uninsured people in a broken health insurance system in an economy, and delineates the problems with there being a broken health insurance system in an economy. Succinctly stated, a broken health insurance system is a type of broken system in which the upsides of forgoing perpetually paying for a health insurance policy preponderantly outweigh the upsides of perpetually paying for a health insurance policy in most contexts. Even though there are certain contexts in which the benefits of procuring a health insurance policy can outweigh the upsides of forgoing perpetually paying for a health insurance policy, this is, however, not the case in most contexts in broken health insurance system. An example of a scenario in which the benefits of procuring a health insurance policy can outweigh the upsides of forgoing perpetually paying for a health insurance policy in a broken health insurance system encompass a person being in need of tens of thousands of dollars of chronic care in hospitals within the time span of a year. If a person is in need of chronic care in hospitals within the time span of a year that is in an amount of fiat currency that exceeds the annual deductible of a health insurance policy, then it would be favorable for him to have procured a health insurance policy in this scenario that covers the cost of receiving chronic care in hospitals. "Ninety percent of the nation's $4.5 trillion in annual health care expenditures are for people with chronic and mental health conditions". The cost of receiving chronic care in hospitals can be sizeable. "Hospitalization is one of the most expensive types of health care use, resulting in an average adjusted cost of $14,101 per inpatient stay at community hospitals in 2019. The most frequent diagnoses for hospitalizations are septicemia, heart failure, osteoarthritis, pneumonia, and diabetes mellitus". In a broken health insurance system, health insurance coverage is lackluster. In a broken health insurance system, health insurance coverage does not cover the cost of elective surgical procedures. For instance, in a broken health insurance system, health insurance coverage does not cover the cost of undergoing leg lengthening surgical procedures. Furthermore, in a broken health insurance system, the health insurance coverage provided to a health insured person by the insurer is limited in scope. It can be deduced that the utility of health insurance coverage can vary from health insurance policy to health insurance policy. Moreover, in a broken health insurance system, health insurance coverage is far less eminently extensive than it is in a robust health insurance system. In a broken health insurance system, health insurance premiums are steep. Furthermore, in a broken health insurance system, health insured people acquiescence to paying an exorbitant health insurance premium on a monthly basis to maintain their health insurance policy. "The average annual health insurance premiums in 2024 was $8,951 for single coverage and $25,572 for family coverage". Moreover, in a broken health insurance system, the exorbitantly priced health insurance premiums are at a high probability to amplify over time even in contexts in which there are no significant improvements in the health insurance policies that charge exorbitantly priced health insurance premiums for health insured people to maintain. In a broken health insurance system, copays for medical services are lofty. In a broken health insurance system, copays for certain medical services can be steeper for health insured people than the discounted fees for certain medical services that uninsured people are eligible be charged if they procure certain medical services. In a broken health insurance system, coinsurance rates on the fees for medical services are also sizeable. Furthermore, in a broken health insurance system, coinsurance rates on the fees for medical services are exorbitant even in contexts in which the health insurance premiums that health insured people accede to paying to maintain their health insurance policy are also exorbitant. "Coinsurance is the amount, generally expressed as a fixed percentage, an insured must pay toward a covered claim after the deductible is satisfied". The coinsurance rate is not applied to the fees for medical services unless a health insured person's annual deductible has already been met on medical bills within the time span of a year. As of March of 2025, coinsurance rates on the fees for medical services often range from 20% to 40% if a health insured person has procured a health insurance policy and has already met the annual deductible on medical bills within the time span of a year.