Find all School-related info fast with the new School-Specific MBA Forum

It is currently 23 Jul 2014, 04:22

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

A major impediment to universal access to medication is the

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Senior Manager
Senior Manager
avatar
Joined: 17 Apr 2013
Posts: 499
Concentration: Entrepreneurship, Leadership
Schools: HBS '16
GMAT Date: 11-30-2013
GPA: 3.3
Followers: 1

Kudos [?]: 35 [0], given: 231

A major impediment to universal access to medication is the [#permalink] New post 11 Nov 2013, 02:29
1
This post was
BOOKMARKED
00:00
A
B
C
D
E

Difficulty:

  55% (medium)

Question Stats:

39% (02:10) correct 61% (01:44) wrong based on 112 sessions
A major impediment to universal access to medication is the high cost of patented drugs, which are often specifically required by patients for survival. In an attempt to make such drugs more widely available to patients, one drug company is planning to offer patients a free one-month drug supply for every $1,000 they spend on patented drugs.

Which of the following, if true, most threatens the plan's prospects for success?

A. Many patented drugs are not designed to be used for more than two weeks.
B. The drug company offering free one-month supplies will increase their prices so that the effective cost per dose remains the same.
C. Most patients who depend on patented drugs for survival possess insurance coverage that pays most of the cost of the drugs they require.
D. Whenever possible, physicians prescribe drugs that are available in generic alternatives that are not patented.
E. Patients who suffer from the most severe ailments often require multiple drugs patented by different companies as part of their daily regimen.
[Reveal] Spoiler: OA

_________________

Like my post Send me a Kudos :) It is a Good manner.

Intern
Intern
avatar
Joined: 29 Dec 2012
Posts: 16
Followers: 1

Kudos [?]: 0 [0], given: 26

Reviews Badge
Re: A major impediment to universal access to medication is the [#permalink] New post 12 Nov 2013, 20:08
I will go with C.

If insurance is available , there is no need of plan to implement.
Senior Manager
Senior Manager
avatar
Joined: 07 Apr 2012
Posts: 297
Followers: 0

Kudos [?]: 13 [0], given: 45

Re: A major impediment to universal access to medication is the [#permalink] New post 13 Nov 2013, 02:52
honchos wrote:
A major impediment to universal access to medication is the high cost of patented drugs, which are often specifically required by patients for survival. In an attempt to make such drugs more widely available to patients, one drug company is planning to offer patients a free one-month drug supply for every $1,000 they spend on patented drugs.

Which of the following, if true, most threatens the plan's prospects for success?

A. Many patented drugs are not designed to be used for more than two weeks.
B. The drug company offering free one-month supplies will increase their prices so that the effective cost per dose remains the same.
C. Most patients who depend on patented drugs for survival possess insurance coverage that pays most of the cost of the drugs they require.
D. Whenever possible, physicians prescribe drugs that are available in generic alternatives that are not patented.
E. Patients who suffer from the most severe ailments often require multiple drugs patented by different companies as part of their daily regimen.


I think C is right.
If the drugs are funded by insurance, than it won't help reducing the cost, because it won't help....
Anyone?
Manager
Manager
avatar
Status: Persevering
Joined: 15 May 2013
Posts: 223
Location: India
Concentration: Technology, Leadership
GMAT Date: 08-02-2013
GPA: 3.7
WE: Consulting (Consulting)
Followers: 0

Kudos [?]: 46 [0], given: 34

GMAT ToolKit User
Re: A major impediment to universal access to medication is the [#permalink] New post 16 Nov 2013, 05:59
B it is,

A major impediment to universal access to medication is the high cost of patented drugs, which are often specifically required by patients for survival. In an attempt to make such drugs more widely available to patients, one drug company is planning to offer patients a free one-month drug supply for every $1,000 they spend on patented drugs.

Which of the following, if true, most threatens the plan's prospects for success?

A. Many patented drugs are not designed to be used for more than two weeks. Even if all of them are not designed to be used for two weeks, there might be several of them,so the dosage can span for a month. In any case, we get the benefit because we get the drugs for free.
B. The drug company offering free one-month supplies will increase their prices so that the effective cost per dose remains the same.Correct,If the effective cost remains the same then why on earth will this scheme be beneficial. It would be on the other hand harmful to the patients who do not spend 1000$.This is the one that most damages the plan's prospect of being successful.
C. Most patients who depend on patented drugs for survival possess insurance coverage that pays most of the cost of the drugs they require.I don't care if it pays for most of the cost. I still do get a benefit with the scheme.
D. Whenever possible, physicians prescribe drugs that are available in generic alternatives that are not patented.Irrelevant, what happens if alternatives are not available, In any case the company is providing me with the benefit.
E. Patients who suffer from the most severe ailments often require multiple drugs patented by different companies as part of their daily regimenMaybe they do but does it absolutely make for a case where no patient would spend a 1000 bucks for the patented drug ?

_________________

--It's one thing to get defeated, but another to accept it.

Manager
Manager
User avatar
Joined: 24 Oct 2013
Posts: 123
Location: Canada
WE: Design (Transportation)
Followers: 4

Kudos [?]: 3 [0], given: 56

GMAT ToolKit User Premium Member CAT Tests
Re: A major impediment to universal access to medication is the [#permalink] New post 29 Jun 2014, 11:58
ramannanda9 wrote:
B it is,

A major impediment to universal access to medication is the high cost of patented drugs, which are often specifically required by patients for survival. In an attempt to make such drugs more widely available to patients, one drug company is planning to offer patients a free one-month drug supply for every $1,000 they spend on patented drugs.

Which of the following, if true, most threatens the plan's prospects for success?

A. Many patented drugs are not designed to be used for more than two weeks. Even if all of them are not designed to be used for two weeks, there might be several of them,so the dosage can span for a month. In any case, we get the benefit because we get the drugs for free.
B. The drug company offering free one-month supplies will increase their prices so that the effective cost per dose remains the same.Correct,If the effective cost remains the same then why on earth will this scheme be beneficial. It would be on the other hand harmful to the patients who do not spend 1000$.This is the one that most damages the plan's prospect of being successful.
C. Most patients who depend on patented drugs for survival possess insurance coverage that pays most of the cost of the drugs they require.I don't care if it pays for most of the cost. I still do get a benefit with the scheme.
D. Whenever possible, physicians prescribe drugs that are available in generic alternatives that are not patented.Irrelevant, what happens if alternatives are not available, In any case the company is providing me with the benefit.
E. Patients who suffer from the most severe ailments often require multiple drugs patented by different companies as part of their daily regimenMaybe they do but does it absolutely make for a case where no patient would spend a 1000 bucks for the patented drug ?


For your explanation of point B. The company sells a drug for 1200$ now, so for 2 drugs = 2400$ they'd have to give you 2 month free supplies. now they up the cost to 1600$ so for 2 drugs they'd have to give you 3 months of free supplies. isn't it beneficial to you?

Plus no matter how much of the cost you may increase, you can always make up for it in a single day of free supplies. even if you paid 1 million $ for drugs, you could make up for it in a single day of free supplies.

_________________


CAT1-520 (GMAT CLUB)
CAT2-620 (MGMAT 1)
CAT3-630 (KAPLAN)
CAT4-680 (MGMAT 2)
CAT5-710 (VERITAS 1)
CAT6-680 (MGMAT 3)
CAT7-720 (VERITAS 2)
CAT8-730 (VERITAS 3)
... Lets see how far can i stretch it up to.

Expert Post
Veritas Prep GMAT Instructor
User avatar
Joined: 16 Oct 2010
Posts: 4566
Location: Pune, India
Followers: 1029

Kudos [?]: 4455 [0], given: 162

Re: A major impediment to universal access to medication is the [#permalink] New post 29 Jun 2014, 21:42
Expert's post
honchos wrote:
A major impediment to universal access to medication is the high cost of patented drugs, which are often specifically required by patients for survival. In an attempt to make such drugs more widely available to patients, one drug company is planning to offer patients a free one-month drug supply for every $1,000 they spend on patented drugs.

Which of the following, if true, most threatens the plan's prospects for success?

A. Many patented drugs are not designed to be used for more than two weeks.
B. The drug company offering free one-month supplies will increase their prices so that the effective cost per dose remains the same.
C. Most patients who depend on patented drugs for survival possess insurance coverage that pays most of the cost of the drugs they require.
D. Whenever possible, physicians prescribe drugs that are available in generic alternatives that are not patented.
E. Patients who suffer from the most severe ailments often require multiple drugs patented by different companies as part of their daily regimen.


Responding to a pm:

Plan: offer patients a free one-month drug supply for every $1,000 they spend on patented drugs
What does the plan want to achieve? "to make such drugs more widely available to patients"
The plan will try to make the high cost drugs more widely available.

Option (B) says that prices will be increased so effective cost per dose will remain the same. If this happens, patients will pay whatever they have been paying. It does not reduce the price of the drug and hence does not make it more widely available. It directly attacks the plan and hence is the correct answer.

If you want to take some numbers to understand, say a patient needs $1000 worth patented drugs every month. If the company bumps up the cost to $2000 for a month's supply and gives him a month's free supply when he buys the $2000 drug, the patient still pays $2000 for 2 month's drug therapy. Hence the price does not come down for him so the company's plan of making the drug more widely available does not succeed.

_________________

Karishma
Veritas Prep | GMAT Instructor
My Blog

Save $100 on Veritas Prep GMAT Courses And Admissions Consulting
Enroll now. Pay later. Take advantage of Veritas Prep's flexible payment plan options.

Veritas Prep Reviews

Re: A major impediment to universal access to medication is the   [#permalink] 29 Jun 2014, 21:42
    Similar topics Author Replies Last post
Similar
Topics:
3 a major impediment of wide accepatance of electrical vehicle anilnandyala 7 15 Nov 2010, 23:08
When selecting a specialist for any major medical procedure, eyunni 20 29 Sep 2007, 17:55
A major impediment to wide acceptance of electric vehicles vivek123 7 22 Nov 2005, 09:26
5 A major impediment to wide acceptance of electric vehicles ruhi 10 04 Nov 2004, 04:47
SPEAKER: The great majority of people in the US have access anuramm 4 07 Aug 2004, 01:09
Display posts from previous: Sort by

A major impediment to universal access to medication is the

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.