That is most certainly the case. I do not know how isyour deal with healthcare up there on England or in the USA, but I would expect insursnce companies to be pretty much the same everywhere.
Down here we have hospitals and clinics. Hospitals are public institutions where any citizen can go for a medical check-up, a health test or complex exams, during minor and severe medical emergencies… all of that. And it is public so you do not pay; however there are very long lists for people who want to do check ups there, the reactive components for several tests are rarely available and surgery is usually made by beginner doctors with old tech gear.
Then you have clinics, that are places you can go to do anything you could at a hospital but faster, better, cleaner, safer and it is paid. You could pay by checks, cash, credit cards, debit cards… or insurance.
Insurances can be personal or company-wide. Companies are not forced to have medical insurance on their workers because there are hospitals, where they can go to for free. Personal insurances are basically what chef describes. You pay a fixed ammount of money every year wether or not you actually use the insurance, and then when you suffer some health hazard your insurance pays what you suffered up to a fixed percentage of like 1000% what you normally pay per year. The older, or more likely to suffer injuries or diseases that you are, the more your insurance will ask of you.