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A government agency that reimburses its clients for bills

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

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New post 10 Jul 2009, 04:34
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C
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E

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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.
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Re: Reimbursements [#permalink]

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New post 10 Jul 2009, 05:04
IMO C
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Kudos [?]: 382 [0], given: 106

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Re: Reimbursements [#permalink]

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New post 10 Jul 2009, 05:43
sudeep wrote:
IMO C



any reasons???
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Re: Reimbursements [#permalink]

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New post 10 Jul 2009, 06:08
"or otherwise harming clients financially" is the catch.

C will harm clients financially, because they will have to pay interest.

trainspotting wrote:
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.

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Re: Reimbursements [#permalink]

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New post 10 Jul 2009, 07:20
trainspotting wrote:
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. - this is neurtal to the argument.
(B) The agency cannot save money by cutting staff because it is already understaffed. - out of scope, no where there is a mention about staff cut.
(C) Some clients borrow money to pay their medical bills; they will pay forty extra days of interest on these loans. - this weakens the argument cause this would hurt the clients financially, which the company is trying to avoid by using the new plan.
(D) Some clients pay their medical bills immediately, but they often take more than forty days to file with the agency for reimbursement. - if clients take 40 days to file they will apply for reimbursement after 40 days but but again the delay by teh company to the client is 40 only.
(E) The agency’s budget was cut by more than $180 million last year. - out of scope, we are talkig about current year, not last year.



is the OA C?

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Senior Manager
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Re: Reimbursements [#permalink]

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New post 10 Jul 2009, 08:14
Economist wrote:
"or otherwise harming clients financially" is the catch.

C will harm clients financially, because they will have to pay interest.

+1

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Re: Reimbursements [#permalink]

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New post 10 Jul 2009, 08:34
Thanks :wink:
rashminet84 wrote:
Economist wrote:
"or otherwise harming clients financially" is the catch.

C will harm clients financially, because they will have to pay interest.

+1

Kudos [?]: 859 [0], given: 18

Senior Manager
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Re: Reimbursements [#permalink]

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New post 10 Jul 2009, 08:38
Economist wrote:
Thanks :wink:
rashminet84 wrote:
Economist wrote:
"or otherwise harming clients financially" is the catch.

C will harm clients financially, because they will have to pay interest.

+1



OA IS C
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Re: Reimbursements [#permalink]

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New post 23 Jul 2009, 01:40
C it is.

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Re: Reimbursements [#permalink]

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New post 23 Jul 2009, 01:51
yes, C for me as well

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Re: Reimbursements   [#permalink] 23 Jul 2009, 01:51
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