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# QOTD #4 After a slow start, Health Savings Accounts (HSAs)

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QOTD #4 After a slow start, Health Savings Accounts (HSAs)  [#permalink]

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12 Jul 2016, 05:59
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10
Question 1
00:00

based on 457 sessions

69% (03:06) correct 31% (03:17) wrong

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Question 2
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based on 465 sessions

55% (01:06) correct 45% (01:11) wrong

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Question 3
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based on 462 sessions

47% (01:31) correct 53% (01:32) wrong

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Question 4
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based on 433 sessions

50% (01:37) correct 50% (01:50) wrong

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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.

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
Spoiler: :: OA
D

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.
Spoiler: :: OA
A

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
Spoiler: :: OA
B

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
Spoiler: :: OA
E

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Re: QOTD #4 After a slow start, Health Savings Accounts (HSAs)  [#permalink]

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12 Jul 2016, 08:56
2
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.
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Re: QOTD #4 After a slow start, Health Savings Accounts (HSAs)  [#permalink]

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12 Jul 2016, 10:13
2
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."
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Re: QOTD #4 After a slow start, Health Savings Accounts (HSAs)  [#permalink]

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13 Jul 2016, 04:00
Top Contributor
10 mins all correct. wasted couple of minutes searching "low-deductible policies" in para.
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Re: QOTD #4 After a slow start, Health Savings Accounts (HSAs)  [#permalink]

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20 Aug 2016, 22:58
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.

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Re: QOTD #4 After a slow start, Health Savings Accounts (HSAs)  [#permalink]

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15 Feb 2017, 09:32
Hi,

Can anybody please explain why option A in question 1 is wrong?
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Re: QOTD #4 After a slow start, Health Savings Accounts (HSAs)  [#permalink]

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15 Feb 2017, 14:25
Top Contributor
arunavamunshi1988 wrote:
Hi,

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

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
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Re: QOTD #4 After a slow start, Health Savings Accounts (HSAs)  [#permalink]

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05 Mar 2017, 20:59
Hello experts,

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Re: QOTD #4 After a slow start, Health Savings Accounts (HSAs)  [#permalink]

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23 Nov 2017, 17:50
Nightfury14 wrote:
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."

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.
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Re: QOTD #4 After a slow start, Health Savings Accounts (HSAs)  [#permalink]

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24 Nov 2017, 22:31
Took 10 minutes 20 seconds and got 2 wrong. Silly mistakes.
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Re: QOTD #4 After a slow start, Health Savings Accounts (HSAs)  [#permalink]

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01 Dec 2017, 09:21
Took 9 mins 15 seconds, including almost 4 mins to read the passage. All correct
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Re: QOTD #4 After a slow start, Health Savings Accounts (HSAs)  [#permalink]

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26 May 2018, 02:51
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
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Re: QOTD #4 After a slow start, Health Savings Accounts (HSAs)  [#permalink]

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26 May 2018, 11:02
Good level RC

.
.

6 min all four correct
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Re: QOTD #4 After a slow start, Health Savings Accounts (HSAs)  [#permalink]

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28 May 2018, 02:25
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.
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Re: QOTD #4 After a slow start, Health Savings Accounts (HSAs)   [#permalink] 28 May 2018, 02:25
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