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# A government agency that reimburses its clients for bills

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Director
Joined: 14 Sep 2005
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A government agency that reimburses its clients for bills [#permalink]

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07 Dec 2005, 08:19
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A government agency that reimburses its clients for bills they have paid for medical care had had this year's budget cut. To save money without cutting reimbursements or otherwise harming clients financially, it plans to delay reimbursement to clients for fotry days, thereby earning $180 million per year in interest on the reimbursement money. Which of the following, if true, is the best criticis, of the agency's plan? (A) Hospitals and physicians typically hold patients responsible for the ultimate payment of their bills. (B) The agnecy cannot save money by cutting staff because it is already understaffed. (C) Some clients borrow money to pay their medical bills; they will pay for 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 agency's budget was cut by more than$180 million last year.
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Senior Manager
Joined: 11 May 2004
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Re: CR - Medical bill [#permalink]

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07 Dec 2005, 08:24
Should be C

We need to show that the new plan still has a negative impact on the clients. If the clients are borrowing funsd to pay for bills, the increased interests costs can be a financial burden.

gamjatang wrote:
A government agency that reimburses its clients for bills they have paid for medical care had had this year's budget cut. To save money without cutting reimbursements or otherwise harming clients financially, it plans to delay reimbursement to clients for fotry days, thereby earning $180 million per year in interest on the reimbursement money. Which of the following, if true, is the best criticis, of the agency's plan? (A) Hospitals and physicians typically hold patients responsible for the ultimate payment of their bills. (B) The agnecy cannot save money by cutting staff because it is already understaffed. (C) Some clients borrow money to pay their medical bills; they will pay for 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 agency's budget was cut by more than$180 million last year.
Director
Joined: 14 Sep 2005
Posts: 988
Location: South Korea
Followers: 2

Kudos [?]: 172 [0], given: 0

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14 Dec 2005, 18:17
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Auge um Auge, Zahn um Zahn !

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Joined: 28 May 2005
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15 Dec 2005, 12:14
yup it should be C.
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hey ya......

Intern
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15 Dec 2005, 12:40
Except C, none indicate a hardship to the end customer. Hence answer is C.
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15 Dec 2005, 21:45
'C' is the best!
15 Dec 2005, 21:45
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