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A program instituted in a particular state allows residents aged 18 to

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A program instituted in a particular state allows residents aged 18 to  [#permalink]

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New post 26 Jul 2018, 21:51
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A program instituted in a particular state allows residents aged 18 to 39 to prepay at current prices for any future healthcare needs that arise after age 65. The program then absorbs the additional costs of any such treatment if the treatment is sought at a state-run healthcare facility. The state’s residents should enroll in the program as a means of defraying the cost of their future medical needs.

Which of the following, if true, is the most appropriate reason for a resident of the state not to participate in the program?


A. Many residents are unsure about where in the state they will retire, and therefore which state-run healthcare facility they will eventually use.

B. For more than eighty-nine percent of state residents, the amount of money earned by putting the prepayment funds in an interest-bearing account today will be greater than the total cost of future healthcare at a state-run facility.

C. The average cost of healthcare at the state’s facilities is expected to rise faster than the average income of state residents.

D. Some of the state’s healthcare facilities are contemplating significant cost increases next year.

E. The prepayment plan would not cover the cost of elective procedures, such as cosmetic surgery, even if the procedures are per formed at state-run healthcare facilities.

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Re: A program instituted in a particular state allows residents aged 18 to  [#permalink]

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New post 27 Jul 2018, 01:41
Bunuel wrote:
A program instituted in a particular state allows residents aged 18 to 39 to prepay at current prices for any future healthcare needs that arise after age 65. The program then absorbs the additional costs of any such treatment if the treatment is sought at a state-run healthcare facility. The state’s residents should enroll in the program as a means of defraying the cost of their future medical needs.

Which of the following, if true, is the most appropriate reason for a resident of the state not to participate in the program?


A. Many residents are unsure about where in the state they will retire, and therefore which state-run healthcare facility they will eventually use.

B. For more than eighty-nine percent of state residents, the amount of money earned by putting the prepayment funds in an interest-bearing account today will be greater than the total cost of future healthcare at a state-run facility.

C. The average cost of healthcare at the state’s facilities is expected to rise faster than the average income of state residents.

D. Some of the state’s healthcare facilities are contemplating significant cost increases next year.

E. The prepayment plan would not cover the cost of elective procedures, such as cosmetic surgery, even if the procedures are per formed at state-run healthcare facilities.


I will go for B. Since it tells the reason why not the participate in the healthcare program.
total amt+interest amt> total cost of future healthcare
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Re: A program instituted in a particular state allows residents aged 18 to  [#permalink]

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New post 27 Jul 2018, 03:19
I go with B, as if the interest earned by putting these prepaid money into fund is more than what could be paid for state-run facility, there is no benefits seen to prepay

B. For more than eighty-nine percent of state residents, the amount of money earned by putting the prepayment funds in an interest-bearing account today will be greater than the total cost of future healthcare at a state-run facility.
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Re: A program instituted in a particular state allows residents aged 18 to  [#permalink]

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New post 27 Jul 2018, 07:13
Bunuel wrote:
A program instituted in a particular state allows residents aged 18 to 39 to prepay at current prices for any future healthcare needs that arise after age 65. The program then absorbs the additional costs of any such treatment if the treatment is sought at a state-run healthcare facility. The state’s residents should enroll in the program as a means of defraying the cost of their future medical needs.


+1 for B.

Pre-thinking :
The state’s residents aged 18 to 39 should enroll in the program that allows to prepay at current prices for any future healthcare needs that arise after age 65, as a means of defraying the cost of their future medical needs, for the program absorbs the additional costs of any such treatment if the treatment is sought at a state-run healthcare facility.
Quite a deal, but what if we have a better deal than this, Sure ! Count me in

B. For more than eighty-nine percent of state residents, the amount of money earned by putting the prepayment funds in an interest-bearing account today will be greater than the total cost of future healthcare at a state-run facility. --> Correct, Matches our pre-thinking, opting for interest-bearing account over the aforementioned program is anyday better

Hence, B.
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Re: A program instituted in a particular state allows residents aged 18 to  [#permalink]

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New post 27 Jul 2018, 08:37
A program instituted in a particular state allows residents aged 18 to 39 to prepay at current prices for any future healthcare needs that arise after age 65. The program then absorbs the additional costs of any such treatment if the treatment is sought at a state-run healthcare facility. The state’s residents should enroll in the program as a means of defraying the cost of their future medical needs.

Which of the following, if true, is the most appropriate reason for a resident of the state not to participate in the program?


A. Many residents are unsure about where in the state they will retire, and therefore which state-run healthcare facility they will eventually use.: I doesn't really matter in which part of state the person lives after retirement. He/She will eventually get benefits. OUT

B. For more than eighty-nine percent of state residents, the amount of money earned by putting the prepayment funds in an interest-bearing account today will be greater than the total cost of future healthcare at a state-run facility.
ANSWER: The sole idea is to subvert the medical expenses after 65. If deposits can earn more than a government scheme to cover all expnditures, then there is no point in putting money in same.

C. The average cost of healthcare at the state’s facilities is expected to rise faster than the average income of state residents.: Strengthens.
D. Some of the state’s healthcare facilities are contemplating significant cost increases next year.: Strengthens

E. The prepayment plan would not cover the cost of elective procedures, such as cosmetic surgery, even if the procedures are per formed at state-run healthcare facilities. : Out of scope.
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Re: A program instituted in a particular state allows residents aged 18 to  [#permalink]

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New post 28 Jul 2018, 07:07
You guys are wonderful! Thanks for the explanation

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Re: A program instituted in a particular state allows residents aged 18 to  [#permalink]

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New post 30 Jul 2018, 03:30
Bunuel wrote:
A program instituted in a particular state allows residents aged 18 to 39 to prepay at current prices for any future healthcare needs that arise after age 65. The program then absorbs the additional costs of any such treatment if the treatment is sought at a state-run healthcare facility. The state’s residents should enroll in the program as a means of defraying the cost of their future medical needs.

Which of the following, if true, is the most appropriate reason for a resident of the state not to participate in the program?


A. Many residents are unsure about where in the state they will retire, and therefore which state-run healthcare facility they will eventually use.

B. For more than eighty-nine percent of state residents, the amount of money earned by putting the prepayment funds in an interest-bearing account today will be greater than the total cost of future healthcare at a state-run facility.

C. The average cost of healthcare at the state’s facilities is expected to rise faster than the average income of state residents.

D. Some of the state’s healthcare facilities are contemplating significant cost increases next year.

E. The prepayment plan would not cover the cost of elective procedures, such as cosmetic surgery, even if the procedures are per formed at state-run healthcare facilities.


KAPLAN OFFICIAL SOLUTION:



Correct Choice: (B)

The argument states that residents should enroll in the plan in order to save money. If, as choice (B) suggests, residents would make more money by investing the equivalent costs now and paying the expenses themselves when the time comes, then the argument is wrong: it would not be financially prudent to take part in the program. Since the program covers participants at any state-run facility, residents should be able to move anywhere within the state, and still fall under the programs guidelines, and choice (A)is wrong.

Choices (C) and (D) both strengthen the argument by stating that it will be less expensive to pay for the procedures now. Even if some procedures will not be covered, the fact that many others are covered still suggests that the plan is a good option; so choice (E) is also incorrect.
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Re: A program instituted in a particular state allows residents aged 18 to  [#permalink]

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New post 09 Aug 2018, 18:24
Bunuel wrote:
A program instituted in a particular state allows residents aged 18 to 39 to prepay at current prices for any future healthcare needs that arise after age 65. The program then absorbs the additional costs of any such treatment if the treatment is sought at a state-run healthcare facility. The state’s residents should enroll in the program as a means of defraying the cost of their future medical needs.

Which of the following, if true, is the most appropriate reason for a resident of the state not to participate in the program?


A. Many residents are unsure about where in the state they will retire, and therefore which state-run healthcare facility they will eventually use.

B. For more than eighty-nine percent of state residents, the amount of money earned by putting the prepayment funds in an interest-bearing account today will be greater than the total cost of future healthcare at a state-run facility.

C. The average cost of healthcare at the state’s facilities is expected to rise faster than the average income of state residents.

D. Some of the state’s healthcare facilities are contemplating significant cost increases next year.

E. The prepayment plan would not cover the cost of elective procedures, such as cosmetic surgery, even if the procedures are per formed at state-run healthcare facilities.


B clearly weakens the argument.
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Re: A program instituted in a particular state allows residents aged 18 to &nbs [#permalink] 09 Aug 2018, 18:24
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