After a slow start, Health Savings Accounts (HSAs)—tax-free savings ac

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After a slow start, Health Savings Accounts (HSAs)—tax-free savings accounts designed to help people save for their and their dependents’ medical needs—have become increasingly popular with individuals who buy their own insurance, and with employers who provide it. The advantages of HSAs are fairly easy to understand: Funds placed into an HSA are sheltered from taxation, just as is the case with money put into Individual Retirement Accounts (IRAs). Unlike funds in IRAs, however, funds in HSAs (and earnings they have acquired through investments) are also exempt from taxation (and penalty) when they are taken out at any time, as long as the funds are used for medical purposes.

An HSA, however, must be combined with a high-deductible health plan. In addition, the amount that can be contributed annually to the account is restricted. Currently, an individual must have a deductible of at least $1,050 to participate, and can contribute as much as $2,700 per year. For families, the figures are higher. Because of the high deductible, out-of-pocket expenses can be substantial, though premiums are relatively low, making HSAs especially attractive to people who don’t expect to need much medical care.

This last point is not lost on those who claim that low-income individuals with serious health issues are unlikely to derive any benefit from HSAs. If you don’t make much, you will not be able to contribute much to the account. And because the deductible is so high, low earners will pay for a good deal of medical care before the deductible takes over. As a result, people who can’t afford (in any sense) to gamble with their health may forego a trip to the doctor. Furthermore, since HSAs are increasingly perceived as attractive to relatively healthy and wealthy Americans, companies that provide traditional insurance may lose business and attempt to make up for this loss by raising their premiums or cutting benefits to low-income clients. Another argument against HSAs is the swelling effect that tax-free accounts will have on the national budget deficit.

No single initiative can solve this nation’s health care problems. Many factors, including malpractice insurance, high-tech research costs, an aging population, and yes, old-fashioned greed, play a role in the rising cost of medical care. HSAs represent a move in the right direction, but they will almost certainly need to be adjusted and supplemented to make it easier for all individuals to get access to competent health care.   1 
 D 
 The passage is chiefly concerned with _______.

(A) proving that HSAs are not yet sufficient to address the nation’s health care problems
(B) giving a balanced view of governmental approaches to making health care more affordable
(C) making the point that HSAs, despite what critics have said, have become increasingly popular with individuals and employers
(D) providing a basic understanding of HSAs, and presenting opinions on the subject, including those of the author
(E) comparing HSAs to more traditional health insurance systems

2 
 A 
 The last paragraph performs which of the following functions in the passage?

(A) It presents a moderate view on the main topic and offers a generalized remedy for a relevant problem.
(B) It summarizes the viewpoints expressed earlier in the passage. 
(C) It acknowledges that some problems are too complex to be completely solved.
(D) It criticizes both of the main viewpoints that had been expressed earlier in the passage. 
(E) It offers statistical evidence to suggest that the problem discussed in the passage cannot be addressed through any one initiative.

3 
 B 
  According to the passage, some critics of HSAs believe that _______.

(A) those responsible for devising this type of account have not taken into consideration the effect it can have on the budget deficit
(B) some people will not be able to put enough money into HSAs to make them worthwhile
(C) only relatively healthy and wealthy individuals will sign up for one of these accounts
(D) the relatively low premiums are still too high for many individuals
(E) individuals who are interested in HSAs should not be forced to choose a high-deductible policy

4 
 E 
 According to the passage, low-deductible policies _______.

(A) offer several clear-cut advantages over HSAs
(B) are limited by the quality of the health care they cover
(C) have certain restrictions regarding how much they will cover in a given year
(D) are offered by companies that are less motivated by greed than those that offer HSAs
(E) may become increasingly expensive or less comprehensive

alpham · Answer

The passage is chiefly concerned with _______.

(A) proving that HSAs are not yet sufficient to address the nation’s health care problems - the passage does not prove anything but rather discusses and acknowledges the issues
(B) giving a balanced view of governmental approaches to making health care more affordable - passage does not talk about government approaches
(C) making the point that HSAs, despite what critics have said, have become increasingly popular with individuals and employers - the last paragraph goes against this
 (D) providing a basic understanding of HSAs, and presenting opinions on the subject, including those of the author  - excellent choice, explaination is given in paragraph 1 and 2, while the opinions are discussed in 3 and 4 (4 is the authors)
(E) comparing HSAs to more traditional health insurance systems - too narrow of an answer choice and there is not a comparison being made in the passage

The last paragraph performs which of the following functions in the passage?

(A) It presents a moderate view on the main topic and offers a generalized remedy for a relevant problem . - correct, the author's opinion is discussed and the remedy is very vague 
(B) It summarizes the viewpoints expressed earlier in the passage. - not true, author's own viewpoint shines through as well.
(C) It acknowledges that some problems are too complex to be completely solved. -  tricky!  however this is too narrow and too pessimistic to the other's viewpoint. 
(D) It criticizes both of the main viewpoints that had been expressed earlier in the passage. - there is no criticism 
(E) It offers  statistical  evidence to suggest that the problem discussed in the passage cannot be addressed through any one initiative. - there is no statistical evidence provided.

According to the passage, some critics of HSAs believe that _______.

(A) those responsible for devising this type of account have not taken into consideration the effect it can have on the budget deficit - unknown 
 (B) some people will not be able to put enough money into HSAs to make them worthwhile  - correct
(C)  only  relatively healthy and wealthy individuals will sign up for one of these accounts - again, very tricky however the passage does not say 'only' which limits this as an answer choice.
(D) the relatively low premiums are still too high for many individuals - not stated in passage
(E) individuals who are interested in HSAs should not be forced to choose a high-deductible policy - not stated in passage

According to the passage, low-deductible policies _______.

(A) offer several clear-cut advantages over HSAs - unknown 
(B) are limited by the quality of the health care they cover
(C) have certain restrictions regarding how much they will cover in a given year -  tricky! , in the passage talks about high deductiables not low ones. 
(D) are offered by companies that are less motivated by greed than those that offer HSAs - nothing arrives to this statement
 (E) may become increasingly expensive or less comprehensive

Between B and E, its a tough one to choose. I would go with E because it states at the end of the paragraph 2 that '(high deductibles) making HSAs especially attractive to people who don’t expect to need much medical care.' therefore it can be inferred that lower deductibles are either more expensive or covers less. B is talking about the quality of the health care but no where in the passage does it discuss about the quality of HSAs but rather the cost. However, I would like an expert's explanation for question #4 to verify my reasoning.

Nightfury14 · Answer

The passage is chiefly concerned with _______.

(A) proving that HSAs are not yet sufficient to address the nation’s health care problems
(B) giving a balanced view of governmental approaches to making health care more affordable
(C) making the point that HSAs, despite what critics have said, have become increasingly popular with individuals and employers
(D) providing a basic understanding of HSAs, and presenting opinions on the subject, including those of the author.  Correct - First and Second para describe HSA's, third para gives opinions of others and last para, the author's view point. 
(E) comparing HSAs to more traditional health insurance systems

The last paragraph performs which of the following functions in the passage?

(A) It presents a moderate view on the main topic  (referring to many factors)  and offers a generalized remedy  (adjustments/ supplements required)  for a relevant problem.-  Correct  
(B) It summarizes the viewpoints expressed earlier in the passage. 
(C) It acknowledges that some problems are too complex to be completely solved.
(D) It criticizes both of the main viewpoints that had been expressed earlier in the passage. 
(E) It offers statistical evidence to suggest that the problem discussed in the passage cannot be addressed through any one initiative.

According to the passage, some critics of HSAs believe that _______.

(A) those responsible for devising this type of account have not taken into consideration the effect it can have on the budget deficit
(B) some people will not be able to put enough money into HSAs to make them worthwhile.  Correct - Third Para "And because the deductible is so high, low earners will pay for a good deal of medical care before the deductible takes over." 
(C) only relatively healthy and wealthy individuals will sign up for one of these accounts
(D) the relatively low premiums are still too high for many individuals
(E) individuals who are interested in HSAs should not be forced to choose a high-deductible policy

According to the passage, low-deductible policies _______.

(A) offer several clear-cut advantages over HSAs
(B) are limited by the quality of the health care they cover.  Is a good contender but the passage states that this "may" happen in future and is not currently a practice. 
(C) have certain restrictions regarding how much they will cover in a given year
(D) are offered by companies that are less motivated by greed than those that offer HSAs
(E) may become increasingly expensive or less comprehensive.  Correct - Para 3 "companies that provide traditional insurance may lose business and attempt to make up for this loss by raising their premiums or cutting benefits to low-income clients."

ThangLe · Answer

Hi,

I took it wrong in two last questions. I have some questions and hope experts will help me:
1. What is the level of this passage?
2. Q3:
B: some people will not be able to put enough money into HSAs to make them worthwhile
-> is "them" refer to HSAs? If so, I eliminated B because I find nowhere in the passage talking about make the HSAs worthwhile. Or is it implies in this sentence: "If you don’t make much, you will not be able to contribute much to the account"?

3. Q4: Please clarify why E is correct. I'm still not understand.

Thanks in advance.

arunavamunshi1988 · Answer

Hi,

Can anybody please explain why option A in question 1 is wrong?

carcass · Answer

Simply because if you read the passage from head down is quite clear that it explains what is HSA, what is its purpose, pro and cons.

Nowhere is mentioned that is not sufficient to provide assistance. Is underlined that it must be combined with something else to work at the best. That is different

Hope this helps

chesstitans · Answer

So, basically, traditional health care plans are low deductible policies? 
It seems this is an inference, or an assumption b/c nowhere in the passage directly mentions low deductible policies. As I understand, not high deductible policies are not equal to low deductible policies.

globaldesi · Answer

According to the passage, some critics of HSAs believe that _______.

(A) those responsible for devising this type of account have not taken into consideration the effect it can have on the budget deficit
(B) some people will not be able to put enough money into HSAs to make them worthwhile.  Correct - Third Para "And because the deductible is so high, low earners will pay for a good deal of medical care before the deductible takes over." 
(C) only relatively healthy and wealthy individuals will sign up for one of these accounts
(D) the relatively low premiums are still too high for many individuals
(E) individuals who are interested in HSAs should not be forced to choose a high-deductible policy

Can anyone give A better explanation for this question? I am not sure of the answer

tejyr · Answer

Took 7 min got last 2 incorrect.

Still didn't get the explanation for last two questions. It would be helpful if anyone can explain the both clearly.

For Q4: I did n't if it was detail/inference question as per question it is detail but low-deductible is nowhere in passage.
low deductible prices can also act as clear advantage (A) as low-pay people will use it.

For Q3 I am in etween C and D.

mimishyu · Answer

For Q2
As (A) is correct, but how it offers a “remedy”???nowhere in the paragraph mention “remedy”???

from sentences appear in the paragraph
No single initiative can solve this nation’s health care problems. Many factors, including malpractice insurance, high-tech research costs, an aging population, and yes, old-fashioned greed, play a role in the rising cost of medical care.
Doesn’t it indeed “summarize” the viewpoints expressed earlier in the passage???

deep31993 · Answer

No official explanation is provided for this RC. Can someone do that please.

Sajjad1994 · Answer

Official Explanation

1. The passage is chiefly concerned with _______.

Difficulty Level:   600

Explanation

Using STOP to find the Purpose of this passage is an excellent way to answer this question. The  first two paragraphs  provide the basic understanding; the  third paragraph  presents some opinions; the  last paragraph  gives us the author’s take on the subject.

(A):  The author does not imply that HSAs will one day be sufficient to address the nation’s health care problems. They are, more modestly, a step in the right direction.

(B):  This choice does not mention HSAs.

(C):  The author does mention that HSAs are increasingly popular, but this is a subsidiary point, not the main one.

(E):  There is very little comparing in the passage.

Answer: D

2. The last paragraph performs which of the following functions in the passage?

Difficulty Level:   650

Explanation

The author's Tone is moderate:  “HSAs represent a move in the right direction, but...”  The generalized remedy is that the HSAs  “need to be adjusted and supplemented to make it easier for all individuals to get access to competent health care.”

(B):  Viewpoints are not summarized.

(C):  Nowhere does the author say that some problems can’t be solved.

(D):  The author does not explicitly criticize earlier viewpoints.

(E):  No statistics are presented.

Answer: A

3. According to the passage, some critics of HSAs believe that _______.

Difficulty Level:   700

Explanation

The  3rd paragraph  states that  “. .. low-income individuals with serious health issues are unlikely to derive any benefit from HSAs. If you don’t make much, you will not be able to contribute much to the account.”

(A):  No one in the passage ascribes ignorance of the facts to anyone.

(C):  The critics say that HSAs are a good deal to healthy and wealthy individuals, but not that only they will sign up for HSAs.

(D):  They may feel this way, but this is not mentioned in the passage.

(E) : As in  choice D , critics might very well feel this way, but we don’t know for sure that they do. Critics might want to do away with HSAs completely.

Answer: B

4. According to the passage, low-deductible policies _______.

Difficulty Level:   700

Explanation

The  3rd paragraph  states that  “since HSAs are increasingly perceived as attractive to relatively healthy and wealthy Americans, companies that provide traditional insurance may lose business and attempt to make up for this loss by raising their premiums or cutting benefits to low-income clients.”

(A):  Besides the low deductible itself, no advantage is described.

(B):  The quality of the care is never mentioned.

(C):  This restriction may be common, but it is not mentioned in the passage.

(D):  This comparison is not made.

Answer: E

Hope it helps

VIVA1060 · Answer

Hi Experts,

I don't understand how we concluded that low-deductible policies are traditional insurance policies.

bM22 · Answer

Hi  VIVA1060 ,

I believe your doubt is regarding the last question. Let me know if this helps.

Its mentioned in the passage that : "since HSAs are increasingly perceived as attractive to relatively healthy and wealthy Americans, companies that provide traditional insurance may lose business and attempt to make up for this loss by raising their premiums or cutting benefits to low-income clients.".

Author mentions that HSA's require high deductible health plans, implying that those who do not earn much are unlikely to get the benefits of the same, so now if companies that provide traditional insurance i.e not high deductible policies, may lose business,(because of growing popularity of HSA's) so they would make an attempt to save their business by raising premiums for the low-income clients.

Now it cannot be directly inferred that traditional policies imply low deductible policies, but it is the most logical implicit inference that can be drawn.

Thanks.

VerbalBot · Answer

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