Coherent solutions for the problem of reducing health-care costs canno

Question

Coherent solutions for the problem of reducing health-care costs cannot be found within the current piecemeal system of paying these costs. The reason is that this system gives health-care providers and insurers every incentive to shift, wherever possible, the costs of treating illness onto each other or any other party, including the patient. That clearly is the lesson of the various reforms of the 1980s: push in on one part of this pliable spending balloon and an equally expensive bulge pops up elsewhere. For example, when the government health-care insurance program for the poor cut costs by disallowing payments for some visits to physicians, patients with advanced illness later presented themselves at hospital emergency rooms in increased numbers.

The argument provides the most support for which one of the following?

(A) Under the conditions in which the current system operates, the overall volume of health-care costs could be shrunk, if at all, only by a comprehensive approach.

(B) Relative to the resources available for health-care funding, the income of the higher-paid health-care professionals is too high.

(C) Health-care costs are expanding to meet additional funds that have been made available for them.

(D) Advances in medical technology have raised the expected standards of medical care but have proved expensive.

(E) Since unfilled hospital beds contribute to overhead charges on each patient’s bill, it would be unwise to hold unused hospital capacity in reserve for large-scale emergencies.

Bunuel · Accepted Answer

OFFICIAL EXPLANATION

(A) Yes. The purpose of the balloon analogy is to point out that any piecemeal attempt at containing costs is doomed to failure. Therefore, if a solution is possible, it can be found only through a comprehensive approach.

(B) No. The passage is advocating a comprehensive approach to health care reform. It is not discussing or advocating any individual issues.

(C) No. The passage is advocating a comprehensive approach to health care reform. It is not discussing or advocating any individual issues.

(D) No. The passage is advocating a comprehensive approach to health care reform. It is not discussing or advocating any individual issues.

(E) No. The passage is advocating a comprehensive approach to health care reform. It is not discussing or advocating any individual issues.

nightblade354 · Answer

Here is some form of explanation I found on MGMAT:

A) doesn't seem likely. "Only by a comprehensive approach" is not discussed. But, it does seem like it might be related to what is in the argument, which is a somewhat non-comprehensive approach. Let's keep it for now.

(B) is not provable. This has nothing to do with the text.

(C) is not provable. This goes well beyond the text.

(D) is not provable. This also goes well beyond the text.

(E) is not provable. This is much more specific to be provable based on this text.

Le'ts go back to (A), our only viable answer. Could (A) be provable?

What we're told is that a system of payment by separate groups cannot work. Therefore, we know that either:

If a system can work, it's going to be not by separate groups, aka "comprehensive."

or

No system can work at all.

So, the system can only work, if it can work at all, using a comprehensive approach.

(A) is the most provable based on the text, and therefore correct.

chesstitans · Answer

Hello, Pls help me. I have solved many LSAT questions. I have found that LSAT questions are written in a much different way than GMAT questions. Do you think such LSAT questions will have a good chance to appear in the real test?

broall · Answer

Unfortunately, logic in LSAT is slightly different from logic in GMAT (logic in LSAT is strict, but logic in GMAT is flexible). I don't think that any question in real GMAT test has the same logic as in LSAT test.

However, you could improve your CR skill by solving LSAT questions. There is no golden key that can open any door, a strategy could work with someone, but won't work with others. You have to find your own way to study GMAT effectively.

gmatexam439 · Answer

Coherent solutions for the problem of reducing health-care costs cannot be found within the current piecemeal system of paying these costs. The reason is that this system gives health-care providers and insurers every incentive to shift, wherever possible, the costs of treating illness onto each other or any other party, including the patient. That clearly is the lesson of the various reforms of the 1980s: push in on one part of this pliable spending balloon and an equally expensive bulge pops up elsewhere. For example, when the government health-care insurance program for the poor cut costs by disallowing payments for some visits to physicians, patients with advanced illness later presented themselves at hospital emergency rooms in increased numbers.

The argument provides the most support for which one of the following?

(A) Under the conditions in which the current system operates, the overall volume of health-care costs could be shrunk, if at all, only by a comprehensive approach. - Correct.
 
(B) Relative to the resources available for health-care funding, the income of the higher-paid health-care professionals is too high. - income?

(C) Health-care costs are expanding to meet additional funds that have been made available for them. - This statement states that funds available > costs - opposite of what us stated in the passage

(D) Advances in medical technology have raised the expected standards of medical care but have proved expensive. - standards of medical care

(E) Since unfilled hospital beds contribute to overhead charges on each patient’s bill, it would be unwise to hold unused hospital capacity in reserve for large-scale emergencies. - out of scope

sunny91 · Answer

Hi,
How do u infer A? nowhere its mentioned in the premise that healthcare costs could be shrinked?

gmatexam439 · Answer

Hello  sunny91 ,

This is inference type question.

Premise 1:
system gives health-care providers and insurers every incentive to shift, wherever possible, the costs of treating illness onto each other or any other party, including the patient. That clearly is the lesson of the various reforms of the 1980s: push in on one part of this pliable spending balloon and an equally expensive bulge pops up elsewhere

Premise 2:
For example, when the government health-care insurance program for the poor cut costs by disallowing payments for some visits to physicians, patients with advanced illness later presented themselves at hospital emergency rooms in increased numbers.

Conclusion:
 Coherent solutions for the problem of reducing health-care costs cannot be found within the current piecemeal system of paying these costs.

As we see, the argument is about cost cutting and the argument states that "under current conditions we can't reduce costs". So we can infer that if at all any cost cutting can be done-since it can't be done in present scenario- we need something that will take into account all the plays/tricks that insurers/hospitals can play on patients.

Neverthless, all other options are out of scope.

1 suggestion: We are always looking for 4 wrong options than a correct one.

Hope that helps !!

lichting · Answer

broall : Dear, it would be much obliged if you can clarify me on this issue.
It's been one more week to go till my Gmat exam day and I run out of CR sources to practice (I have done all official guide cr on gmatclub and other apps alr) then I bumped into your LSAT source and found it super helpful to practice. However, compared with Gmat CR, most of Lsat question even the 95% difficulty ones I can do it pretty well since I found the Lsat logic is much more straightforward and easy to infer rather than Gmat cr.
What struck me is that should I continue practice lsat questions till exam day or should i just stick to Gmat cr questions to get acquainted with Gmat logic instead

Thank you so much in advance!

broall · Answer

I think that you should stop practice LSAT questions and go back to GMAT like questions since you dont have much time now.

Practicing LSAT is for long run, not short run. If you have a short period of time to study, it's better to focus on GMAT materials only. Take some tests on GMATPrep to estimate your score and get ready to the test.

Rickyrocks · Answer

A) Under the conditions in which the current system operates, the overall volume of health-care costs could be shrunk, if at all, only by a comprehensive approach. Correct as this option is talking about the cost cutting and another approach.

(B) Relative to the resources available for health-care funding, the income of the higher-paid health-care professionals is too high - income of Heath.... we are not concerned with this.

(C) Health-care costs are expanding to meet additional funds that have been made available for them....opposite of what is mentioned in passage.

(D) Advances in medical technology have raised the expected standards of medical care but have proved expensive. ... it is giving an additional information to support that cost is increasing but not mentioning how can we cut cost.

(E) Since unfilled hospital beds contribute to overhead charges on each patient’s bill, it would be unwise to hold unused hospital capacity in reserve for large-scale emergencies.....here the person is judging the argument... because wheather it would be wise or unwise that depends on situation.

Posted from my mobile device

ManasviHP · Answer

Coherent solutions for the problem of reducing health-care costs cannot be found within the current piecemeal system of paying these costs. The reason is that this system gives health-care providers and insurers every incentive to shift, wherever possible, the costs of treating illness onto each other or any other party, including the patient. That clearly is the lesson of the various reforms of the 1980s: push in on one part of this pliable spending balloon and an equally expensive bulge pops up elsewhere. For example, when the government health-care insurance program for the poor cut costs by disallowing payments for some visits to physicians, patients with advanced illness later presented themselves at hospital emergency rooms in increased numbers.

The argument provides the most support for which one of the following?

(A) Under the conditions in which the current system operates, the overall volume of health-care costs could be shrunk, if at all, only by a comprehensive approach. - hold

(B) Relative to the resources available for health-care funding, the income of the higher-paid health-care professionals is too high. Irrelevant

(C) Health-care costs are expanding to meet additional funds that have been made available for them. - weakens the argument

(D) Advances in medical technology have raised the expected standards of medical care but have proved expensive. - Irrelevant

(E) Since unfilled hospital beds contribute to overhead charges on each patient’s bill, it would be unwise to hold unused hospital capacity in reserve for large-scale emergencies. - Irrelevant

We need answer that will prove that cost cuttings in one area will lead to a bulge in the other. A is the closest and also by POE you arrive at A.

Kudos if you like the post.

JDF · Answer

A is correct because the prompt says a piecemeal approach won’t work. This suggests it’s opposite, a comprehensive approach, is needed.

C is wrong because there isn’t anything that suggests costs are growing because of new funding. This new funding is never alluded to anywhere.

Posted from my mobile device

CEdward · Answer

What is a "comprehensive approach"? That is as vague as they come.

DishaAgarwal12 · Answer

it is not vague- the passage mentions that there is lack of coherent solutions, so we can infer that we need comprehensive solutions.

Coherent solutions for the problem of reducing health-care costs canno

Prep Toolkit

Top 5 GMAT Debrief Videos

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards

GMAT Critical Reasoning (CR) Questions

Coherent solutions for the problem of reducing health-care costs canno

Prep Toolkit

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards