Health insurers are largely immune to the factors that are limiting profit in many sectors of the healthcare economy. Consumers have shown a willingness to pay almost any price for health insurance premiums. Capital demands, which are the responsibility of doctors and hospitals, are increasing dramatically, even as cost-containment measures, largely encouraged by the insurers and their friends in government, have forced new levels of fiscal discipline upon hospitals and doctors. Patients still need MRIs and buildings to put them in, but hospitals are limited in how much they can charge patients for the use of these facilities.
Which one of the following most accurately describes the role that the statement “patients still need MRIs and buildings to put them in” plays in the argument?
(A) It is a specific example of a general condition described in the course of the argument.
(B) It is used to counter a consideration that may be taken to undermine the argument.
(C) It is used to indirectly support the claim made by the argument.
(D) It describes a social side effect of the benefit with which the argument is concerned.
(E) It introduces the conclusion that the argument intends to support.
A. It is a specific example of a general condition described in the course of the argument.
The argument is that because patients need medical care and hospitals, regardless of what those services cost, hospitals and doctors rather than insurers bear the brunt of cost-containment measures; the MRI statement provides an example. Choice (A) is a good answer; the statement is a specific example of capital demands (MRIs and buildings) of the general condition of fiscal discipline described in the argument. Choice (B) doesn’t work because the MRI statement doesn’t counter an attack. Choice (C) isn’t as good an answer as Choice (A). The author’s claim or conclusion is that health insurers are still profiting from healthcare while doctors, hospitals, and patients are being increasingly squeezed, but the MRI statement doesn’t indirectly support that claim. Choice (D) doesn’t work. Patients’ needing treatment isn’t a social side effect but a normal event that remains consistent, regardless of changing circumstances. Choice (E) is wrong; the MRI statement doesn’t introduce the conclusion about the immunity of health insurers. Choice (A) is correct.