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# A government agency that reimburses its clients for bills

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Manager
Joined: 30 Aug 2005
Posts: 183

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A government agency that reimburses its clients for bills [#permalink]

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30 Nov 2005, 06:42
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A government agency that reimburses its clients for bills they have paid for medical care has had this yearâ€™s budget cut. To save money without cutting reimbursements or otherwise harming clients financially, it plans to delay reimbursements to clients for forty days, thereby earning \$180 million per year in interest on the reimbursement money.
Which of the following, if true, is the best criticism of the agencyâ€™s plan?
(A) Hospitals and physicians typically hold patients responsible for the ultimate payment of their bills.
(B) The agency cannot save money by cutting staff because it is already understaffed.
(C) Some clients borrow money to pay their medical bills; they will pay forty extra days of interest on these loans.
(D) Some clients pay their medical bills immediately, but they often take more than forty days to file with the agency for reimbursement.
(E) The agencyâ€™s budget was cut by more than \$180 million last year.

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SVP
Joined: 14 Dec 2004
Posts: 1681

Kudos [?]: 171 [0], given: 0

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30 Nov 2005, 06:59
It should be 'C'.

It puts extra finance burden on clients as against agnecy's plan of not to harm clients finacially.

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SVP
Joined: 16 Oct 2003
Posts: 1798

Kudos [?]: 173 [0], given: 0

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30 Nov 2005, 10:31
C tells that the clients will be harmed financially.

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Senior Manager
Joined: 11 May 2004
Posts: 453

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Location: New York

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30 Nov 2005, 15:09
C shows that they clients will still be hurt.

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Manager
Joined: 30 Aug 2005
Posts: 183

Kudos [?]: 15 [0], given: 0

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01 Dec 2005, 05:58
OA is C

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SVP
Joined: 28 May 2005
Posts: 1699

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Location: Dhaka

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01 Dec 2005, 11:32
yup got C as well.
_________________

hey ya......

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Senior Manager
Joined: 29 Aug 2005
Posts: 498

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02 Dec 2005, 02:50
C it is .

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Senior Manager
Joined: 29 Aug 2005
Posts: 498

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02 Dec 2005, 02:51
C it is .

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02 Dec 2005, 02:51
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# A government agency that reimburses its clients for bills

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