Insurance for healthcare digitization is essential because conventional systems are inefficient and vulnerable to fraud and data security concerns. Data breaches, false claims, and delayed processing are common problems with existing models that undermine efficiency and confidence. To address these challenges, this study proposes a distributed healthcare insurance system that integrates Self-Sovereign Identity (SSI), blockchain, artificial intelligence (AI), and oracles. Blockchain technology enables secure transactions, AI enhances fraud detection and claim validation, Oracles provides external data in real-time for decision-making, and SSI empowers users to manage their personal data for greater privacy and compliance. We thoroughly reviewed previous experimental research to evaluate the viability and potential effects of this strategy. The findings highlight the effectiveness of blockchain in transaction security, AI-driven models in fraud reduction, and oracles in data reliability. Our analyses show that the proposed framework can improve security, automate processes, and incorporate credible data sources, thus making healthcare insurance more efficient, scalable, and trustworthy.