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# A government agency that reimburses its clients for bills

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VP
Joined: 22 Nov 2007
Posts: 1079

Kudos [?]: 679 [1], given: 0

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

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12 Feb 2008, 06:11
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A government agency that reimburses its clients for bills they have paid for medical care has had this year’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 agency’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 agency’s budget was cut by more than \$180 million last year.

Kudos [?]: 679 [1], given: 0

Senior Manager
Joined: 18 Jun 2007
Posts: 286

Kudos [?]: 61 [0], given: 0

Re: cr 1000 test III N.11 [#permalink]

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12 Feb 2008, 07:21
C. The crux is that agency dont want to harm its clients financially.

Kudos [?]: 61 [0], given: 0

Manager
Joined: 02 Jan 2008
Posts: 193

Kudos [?]: 36 [0], given: 0

Location: Toronto
Re: cr 1000 test III N.11 [#permalink]

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12 Feb 2008, 09:07
I agree with <B>C</B>

Kudos [?]: 36 [0], given: 0

Director
Joined: 26 Jul 2007
Posts: 535

Kudos [?]: 180 [0], given: 0

Schools: Stern, McCombs, Marshall, Wharton
Re: cr 1000 test III N.11 [#permalink]

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12 Feb 2008, 09:29
I agree its C.

The goals are to save money without cutting reimbursements and not hurt their clients financially. C would cause a situation where they were hurting their clients financially.

Kudos [?]: 180 [0], given: 0

Manager
Joined: 07 Jan 2008
Posts: 114

Kudos [?]: 33 [0], given: 0

Re: cr 1000 test III N.11 [#permalink]

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12 Feb 2008, 10:15
c it is

Kudos [?]: 33 [0], given: 0

VP
Joined: 22 Nov 2007
Posts: 1079

Kudos [?]: 679 [0], given: 0

Re: cr 1000 test III N.11 [#permalink]

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12 Feb 2008, 11:07
jay02 wrote:
c it is

good job. oa c

Kudos [?]: 679 [0], given: 0

Senior Manager
Joined: 19 Nov 2007
Posts: 459

Kudos [?]: 218 [0], given: 4

Re: cr 1000 test III N.11 [#permalink]

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14 Feb 2008, 22:49
C clearly!
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Kudos [?]: 218 [0], given: 4

Re: cr 1000 test III N.11   [#permalink] 14 Feb 2008, 22:49
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