Medical Insurance: What is Medical Insurance Administration? - Providers

Providers - the doctors, the hospitals, the labs - also play a part in the cost of medical insurance.

Providers have office staff, office expenses (rent, supplies, continuing education and licensure costs, malpractice insurance), and their own salary.

These costs are included in calculating the over-all cost of medical coverage.

Pharmacy purchases also calculate into the cost of medical coverage, the research and development of medications, the cost of packaging and distributing the medication, the costs to the pharmacy in hiring staff to sell these medications to you.

Anything that may play a role in keeping you healthy also plays a part in the cost of medical coverage.