The traditional health insurance model is often criticized for its complexity and lack of transparency. DeFi offers a new approach by enabling peer-to-peer insurance models that eliminate intermediaries and reduce costs. Patients can create customized insurance plans that suit their specific needs, enhancing flexibility and coverage options. Additionally, smart contracts can automate claims processing, ensuring timely payments and reducing administrative burdens. As DeFi continues to evolve, it is set to transform the health insurance landscape, making it more accessible and user-friendly for everyone.