TAILIEUCHUNG - KEY INFORMATION ON HEALTH CARE COSTS AND THEIR IMPACT - May 2012

In addition, the federal government pays administrative expense subsidies to insurance companies as an allowance that is intended to cover their expenses for selling and servicing crop insurance policies. In turn, insurance companies use these subsidies to cover their overhead expenses, such as payroll and rent, and to pay commissions to insurance agencies and agents. Companies also incur expenses associated with verifying—adjusting—the amount of loss claimed. These expenses include, for example, loss adjusters’ compensation and their travel expenses to farmers’ fields. The financial relationships among the federal government, private insurance companies, agents, and farmers are illustrated in figure 1. . | HEALTH CARE COSTS A PRIMER MAY 2012 KEY INFORMATION ON HEALTH CARE COSTS AND THEIR IMPACT THE HENRY J. KAISER FAMILY FOUNDATION HEALTH CARE COSTS A PRIMER KEY INFORMATION ON HEALTH CARE COSTS AND THEIR IMPACT MAY .

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