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Health Maintenance Organizations (HMOs)....

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Health Maintenance Organizations (HMOs).... [#permalink] New post 19 Jul 2010, 19:11
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Difficulty:

  75% (hard)

Question Stats:

57% (02:43) correct 43% (01:49) wrong based on 251 sessions
I could not get the rigth answer for this question, this came up in a kaplan exam. I also dont understand the explanation. Could someone pick the best answer and explain how to get to it. I will be posting the answer later.


Doctor: Health Maintenance Organizations (HMOs) should not be used to replace traditional fee-for-service methods of delivering health care. The less health care that HMOs deliver, the greater the profit these companies receive. Accordingly, there is a perverse incentive for these companies to deliver very little health care, regardless of the ill patient's needs.

Which of the following, if true, casts the most doubt on the doctor's conclusion?

a)Doctors are paid less by HMOs than they receive under a fee-for-service system, which allows HMOs to charge less for the service they provide.
b)An effective way for HMOs to cut health care delivery costs is to prevent diseases from occurring by providing considerable amounts of preventive health care.
c) If HMOs deliver less health care, competitive pressures will force these companies to lower the rates they charge for health care coverage, returning the profit margin to former levels.
d)Fee-for-service methods of delivering health care have perverse incentives to provide unnecessary health care at inflated costs.
e)HMOs are the only proven way to reduce the high health care costs produced by a fee-for-service system without governmental interference.
[Reveal] Spoiler: OA
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Re: Health Maintenance Organizations (HMOs).... [#permalink] New post 19 Jul 2010, 20:45
I went for B.

Curious to see how people will tackle this one.
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Re: Health Maintenance Organizations (HMOs).... [#permalink] New post 19 Jul 2010, 21:36
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Doctor: Health Maintenance Organizations (HMOs) should not be used to replace traditional fee-for-service methods of delivering health care. The less health care that HMOs deliver, the greater the profit these companies receive. Accordingly, there is a perverse incentive for these companies to deliver very little health care, regardless of the ill patient's needs.

a)Doctors are paid less by HMOs than they receive under a fee-for-service system, which allows HMOs to charge less for the service they provide. - This does not attack the underlined claim
b)An effective way for HMOs to cut health care delivery costs is to prevent diseases from occurring by providing considerable amounts of preventive health care. - Again irrelevant, does not attack why they deliver little health care
c) If HMOs deliver less health care, competitive pressures will force these companies to lower the rates they charge for health care coverage, returning the profit margin to former levels - Yes, if HMO's deliver very little health care, it affects their profit margin, hence undermines the bolded claim
d)Fee-for-service methods of delivering health care have perverse incentives to provide unnecessary health care at inflated costs. - This does not concern or attach the Doctor's claim about HMO's
e)HMOs are the only proven way to reduce the high health care costs produced by a fee-for-service system without governmental interference. - Strengthens the argument

Hence the answer which weakens would be C. Hope this helps.

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Re: Health Maintenance Organizations (HMOs).... [#permalink] New post 21 Jul 2010, 11:09
well explained sandeepnerli.

I had hard time understanding the argument but your explanation made it clear.
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Re: Health Maintenance Organizations (HMOs).... [#permalink] New post 22 Jul 2010, 14:18
I agree with seekmba!

Nice explanation,sandeepnerly! +1 to you!
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Re: Health Maintenance Organizations (HMOs).... [#permalink] New post 22 Jul 2010, 20:00
I pick C after a while, I was torn among B, C, D

Arguments:

Conclusion: HMO < FFS
Premise:
- HMO deliver less healthcare, profit rise
- HMO will deliver very little healthcare (therefore we should keep FFS)

We need to weaken HMO < FFS, in this case, the way to weaken is to attack the reasoning

A - Talk about doctor paid, this is just fact, no bearing on the conclusion -> WRONG

B - This is a very appealing answer, but if that is true then HMO still can gain a lot of profit according to the reason of the argument -> not weaken -> WRONG

C - HMO deliver less healthcare, pressure => no more as profit, can't continue deliver less healthcare -> Weaken -> Correct

D - We need to attack HMO, FFS could be bad, but we don't care -> Out of Scope -> WRONG

E - Reduce high cost of FFS, but still gain profit by deliver less healthcare -> not weaken -> WRONG
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Re: Health Maintenance Organizations (HMOs).... [#permalink] New post 28 Jul 2010, 21:37
C.........above explanations are good ......
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Re: Health Maintenance Organizations (HMOs).... [#permalink] New post 29 Jul 2010, 06:12
C..
question was pretty weird for me ..then I read the choices and understood. and picked C ...
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Re: Health Maintenance Organizations (HMOs).... [#permalink] New post 14 Sep 2010, 08:27
IMO C...Pretty easy
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Re: Health Maintenance Organizations (HMOs)....   [#permalink] 14 Sep 2010, 08:27
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