I am told that medical insurance is permissible despite the fact that it is the same as all other types of insurance.

Answer

Undoubtedly, Medical Aid

is insurance. However, most Ulama say that it is permissible because of the dire need of these times. The government hospitals are absolutely deplorable. The private clinics/ hospitals are among the worst butchers and parasites regarding fees which most people cannot afford. There is a principle of the Shariah which legalizes prohibitions when there is a dire need.