[quote="Mechmeera"]In a certain country, insurance companies pay only a fixed percentage of the fees actually billed by healthcare providers; the remaining balance is waived.
Patients without insurance coverage will pay the full amount of those fees.
If the fixed percentage set for insurance companies is changed, healthcare providers will adjust their fees so that the insurance companies pay the same dollar amount that they would have paid before the change.
The information given most strongly supports which of the following general claims about the country described?
a) If the percentage prescribed by law for insurance companies is decreased, private patients without insurance coverage will pay more for healthcare services.
b) The dollar amount paid by insurance companies to healthcare providers will not change unless the legally specified percentage is changed.(
the dollar will not change because of adjustment even if the fixed percentage is changed. This is exactly opposite.)
c) If the number of patients without insurance coverage grows beyond the number of patients covered by insurance, healthcare providers will adjust their billing practices according to the needs of those patients.
d) If an economic recession causes the healthcare industry to suffer, the legally prescribed percentage paid by insurance companies will be increased.
(new information-cannot be informed)
e) Acquiring insurance coverage, if possible, would be a sound economic decision for any patient.(
out of scope)
We can easily take eliminate options D and E.
I am confused between options A, B and C.
Please explain.[/quote
If the fixed percentage set for insurance companies is changed,
healthcare providers will adjust their fees so that the insurance companies
pay the same dollar amount that they would have paid before the change.
This means-
1. if the
percentage is decreased , then the hospitals
will increase the bill amount in $ so that they end up receiving the same amount of $ money.
2. if the
percentage is increased, then the hospitals
will decrease the bill amount in $ so that they end up receiving the same amount of $ money.
The ones WITHOUT insurance will pay the FULL AMOUNT in any case because it is clearly stated that Patients without insurance coverage will pay the full amount of those fees.
in situation 1, the ones without insurance will end up paying MORE $$$.
A deals with situation 1.
Your analysis of option B looks correct.
C uses the STRONG word WILL and we have no information to determine with certainty to evaluate the situation stated in option C.
Hope the above helps!!
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