Many United States companies believe that the rising cost of employees

Time 5:35 mins

1. The passage is primarily concerned with
A. providing support for a traditional theoryOn the contrary, it asks for the discontinuation of the practice followed till now
B. comparing several explanations for a problemNope
C. summarizing a well-known research studyNo mention of any research theory
D. recommending an alternative approach It does exactly this.
E. criticizing the work of a researcher No mention of any researcher


2. The author of the passage asserts which of the following about managing health care costs in an effective manner?
A. Educating employees to use health care wisely is the best way to reduce health care costs. No mention of educating employees
B. Allowing employees to select health care programs is the most effective means of controlling health care costs.Author wants the employer to do something not the employees
C. Companies should pass rising health care costs on to employees rather than to consumers of the companies' products.On the contrary, the author criticises this approach which was adopted by the companies
D. Companies should use strategies in procuring health care similar to those used in procuring components necessary for production.True
E. Companies should control health care costs by reducing the extent of medical coverage rather than by shifting costs to employees.No mention of controlling healthcare costs. On the contrary, there is mention of increasing medical coverage through on-site medical clinic


3. Which of the following, if true, would provide the most support for the author's view about intervening on the supply side of health care?
A. Most companies do not have enough employees to make on-site clinics cost-effective.This would weaken our case since the cost per employee would be higher
B. Many companies with on-site clinics offer their employees the option of going outside the company's system to obtain health care.Has no effect on our author's view
C. The costs of establishing and running an on-site clinic are demonstrably higher than the costs of paying for health care from an outside provider.Weakens our case
D. Companies with health care clinics find that employees are unwilling to assist in controlling the costs of health care.Weakens our case
E. Employees at companies with on-site clinics seek preventive screening and are thus less likely to delay medical treatment.Strengthens our case. Medical treatment means costs. This point thus tells us that costs will be delayed.

I though that author is not favoring on site clinics, but its other way around. I got it now.
Moral of the story : read carefully what author supports or rejects.
Thanks man it really helped.

Took 6 mins , including 2 mins 10 seconds to read
-The author firsts discusses how united states companies view their employee health care benefits policy
- He then recommends a course of action for the United Sates companies which would result in increasing employee retention as well as reduce costs to the company

1.
The author clearly recommends a new approache that companies can use to reduce health care costs incurred .
Answer D

2.
“Health care costs can be managed more effectively if companies intervene in the supply side of health care delivery just as they do with other key suppliers: strategies used to procure components necessary for production would work in procuring health care".

3. A- would make on site clinics ineffective
B-would make on site clinics redundant
C and D - weaken the argument

Answer E

Hi,
may be a bit late,but let me try.

This strategy, however, has actually hindered companies' competitiveness. For example, cost shifting threatens employees' health because many do not seek preventive screening.
This excerpt explains us the reason why the shift of health care costs to employees hurt the companies' competitiveness;hence,anything that could reduce such hindrance is the answer.

3. Which of the following, if true, would provide the most support for the author's view about intervening on the supply side of health care?
A. Most companies do not have enough employees to make on-site clinics cost-effective.
B. Many companies with on-site clinics offer their employees the option of going outside the company's system to obtain health care.
C. The costs of establishing and running an on-site clinic are demonstrably higher than the costs of paying for health care from an outside provider.
D. Companies with health care clinics find that employees are unwilling to assist in controlling the costs of health care.
E. Employees at companies with on-site clinics seek preventive screening and are thus less likely to delay medical treatment.


Hi,
This is a strengthen question type. We have to support the authors point that an onsite clinic will favour the company. Since empolyees will seek preventive screening and will less likely to delay treatment , less health cost will be occured to the company , decreasing overall production cost . Since having a onsite clinic saved cost for the company , the solution provided by the author is strenghtened.

P1 - health care - production cost - steps taken - bad effect on companies - how is given?
P2 - How to manage health care cost more effectively ? with examples.
main point - having HC hurt companies, but not having HC hurt them more. two sides explained.

1. The passage is primarily concerned with

(A) providing support for a traditional theory - no
(B) comparing several explanations for a problem - No
(C) summarizing a well-known research study - No
(D) recommending an alternative approach - Closest of the answers we have thought about.
(E) criticizing the work of a researcher - no, extreme

-----------------------------------------

2. The author of the passage asserts which of the following about managing health care costs in an effective manner?
This is defined in P2.
(A) Educating employees to use health care wisely is the best way to reduce health care costs. - no
(B) Allowing employees to select health care programs is the most effective means of controlling health care costs. - not specifically written
(C) Companies should pass rising health care costs on to employees rather than to consumers of the companies' products. - so only rising cost should be passed. that is no.
(D) Companies should use strategies in procuring health care similar to those used in procuring components necessary for production. - This is one of the challenge company was facing and can be improved. Should be the answer.
(E) Companies should control health care costs by reducing the extent of medical coverage rather than by shifting costs to employees. - no

------------------------------------------

3. Which of the following, if true, would provide the most support for the author's view about intervening on the supply side of health care?
First line of p2.
(A) Most companies do not have enough employees to make on-site clinics cost-effective. - no
(B) Many companies with on-site clinics offer their employees the option of going outside the company's system to obtain health care. - no
(C) The costs of establishing and running an on-site clinic are demonstrably higher than the costs of paying for health care from an outside provider. - no
(D) Companies with health care clinics find that employees are unwilling to assist in controlling the costs of health care. - no
(E) Employees at companies with on-site clinics seek preventive screening and are thus less likely to delay medical treatment. - yes; example in P2 says exactly the same.

"For example, cost shifting threatens employees' health because many do not seek preventive screening. "
What does this mean?

"more effectively if companies intervene in the supply side of health care delivery"
What does this mean?

Please explain q3

1st paragraph summary:

Many US companies have shifted health care costs to employees in the form of wage deductions or high deductibles to 'regain' competitive advantage.
But this policy change ended up being counter-productive: it strained labor relations and many employees ended up not seeking preventive screening.

2nd paragraph summary(solution to correct a problem described in paragraph 1): Companies can use a business tactic (the make/buy decision) to foster morale and constrain the growth of healthcare costs.

1. The passage is primarily concerned with

(A) providing support for a traditional theory - does not support; instead, the passage highlights a flaw in a common business practice.
(B) comparing several explanations for a problem - the passage does not provide multiple explanations
(C) summarizing a well-known research study - Not exactly, since a recommendation was provided in the second paragraph
(D) recommending an alternative approach - the second paragraph contains a recommendation and the possible benefits of these recommendations. Hence, (D) is the right answer choice here.
(E) criticizing the work of a researcher - the passage does not mention whether the topic under discussion is the work of a researcher.

2. The author of the passage asserts which of the following about managing health care costs in an effective manner?

(A) Educating employees to use health care wisely is the best way to reduce health care costs. - does not provide a statement about which method is the "best" way to reduce cost.
(B) Allowing employees to select health care programs is the most effective means of controlling health care costs. - does not provide a statement about which method is the "most effective" way to control healthcare costs.
(C) Companies should pass rising health care costs on to employees rather than to consumers of the companies' products. - does not make this recommendation at all
(D) Companies should use strategies in procuring health care similar to those used in procuring components necessary for production. - In the first line of the second paragraph, we have "Health care costs can be managed more effectively if companies intervene in the supply side of health care delivery just as they do with other key suppliers......to procure components necessary for production would work in procuring health care". Hence, (D) is the right answer here.
(E) Companies should control health care costs by reducing the extent of medical coverage rather than by shifting costs to employees. - does not make this recommendation.

3. Which of the following, if true, would provide the most support for the author's view about intervening on the supply side of health care?

(A) Most companies do not have enough employees to make on-site clinics cost-effective. - passage does not provide any information regarding the 'number' of employees.
(B) Many companies with on-site clinics offer their employees the option of going outside the company's system to obtain health care. - does not support the author's view.
(C) The costs of establishing and running an on-site clinic are demonstrably higher than the costs of paying for health care from an outside provider. - this would provide a reason to weaken the author's view, not strengthen it.
(D) Companies with health care clinics find that employees are unwilling to assist in controlling the costs of health care. - does not support the author's view at all
(E) Employees at companies with on-site clinics seek preventive screening and are thus less likely to delay medical treatment. - we do know from the first paragraph that after the healthcare policy shift, many employees "do not seek preventive screening.". (E) highlights the benefit of the author's view and therefore lends support to the author's view. Hence, (E) is the right answer here.

If you find this explanation helpful, please do give it a kudos

1.
(A) providing support for a traditional theory- no traditional theory mentioned

(B) comparing several explanations for a problem - there are no several explanations but the negative consequences companies had due to health care costs shifting

(C) summarizing a well-known research study - no well-known research study mentioned

(D) recommending an alternative approach -CORRECT Since health care costs shifting had negative impact, managing them effectively through supply is better

(E) criticizing the work of a researcher - the author is not critisizing any work

3. Since many are asking, this is my understanding of Q3 and why is E- CORRECT
(A) Most companies do not have enough employees to make on-site clinics cost-effective.
(B) Many companies with on-site clinics offer their employees the option of going outside the company's system to obtain health care.
(C) The costs of establishing and running an on-site clinic are demonstrably higher than the costs of paying for health care from an outside provider.
(D) Companies with health care clinics find that employees are unwilling to assist in controlling the costs of health care.
(E) Employees at companies with on-site clinics seek preventive screening and are thus less likely to delay medical treatment. CORRECT because in the first Paragraph it says:
"This strategy, however, has actually hindered companies' competitiveness. For example, cost shifting threatens employees' health because many do not seek preventive screening." which means if employees are neglecting to take care of their health, then the company loses its employees as well since they wont be able to be at work often and be less productive, thus a cost for the company. So, if at E: Employees at companies with on-site clinics seek preventive screening and are thus less likely to delay medical treatment. Then, there will be no cost for the company if they provide an on-site clinic maintained by the company (intervening on the supply side of health care)

confusing passage!! startegies

NO it's not took me 3 minutes to read and answer all the questions correctly.

This link might help for RC - https://gmatclub.com/forum/how-to-read- ... 00886.html

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