A program instituted in a particular state allows residents aged 18 to

Question

A program instituted in a particular state allows residents aged 18 to 39 to prepay at current prices for any future healthcare needs that arise after age 65. The program then absorbs the additional costs of any such treatment if the treatment is sought at a state-run healthcare facility. The state’s residents should enroll in the program as a means of defraying the cost of their future medical needs.

Which of the following, if true, is the most appropriate reason for a resident of the state not to participate in the program?

A. Many residents are unsure about where in the state they will retire, and therefore which state-run healthcare facility they will eventually use.

B. For more than eighty-nine percent of state residents, the amount of money earned by putting the prepayment funds in an interest-bearing account today will be greater than the total cost of future healthcare at a state-run facility.

C. The average cost of healthcare at the state’s facilities is expected to rise faster than the average income of state residents.

D. Some of the state’s healthcare facilities are contemplating significant cost increases next year.

E. The prepayment plan would not cover the cost of elective procedures, such as cosmetic surgery, even if the procedures are per formed at state-run healthcare facilities.

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aditya1818 · Answer

A. Many residents are unsure about where in the state they will retire, and therefore which state-run healthcare facility they will eventually use.  Incorrect- This confusion doesn't outweighs the benefits of the healthcare facility as people will still be able to save money.

B. For more than eighty-nine percent of state residents, the amount of money earned by putting the prepayment funds in an interest-bearing account today will be greater than the total cost of future healthcare at a state-run facility.  Correct- If people save the money in the bank and earn more interest and thus overall have more money than spending less part of that money for the treatment will leave them with still some money thus making them more financially sound.

C. The average cost of healthcare at the state’s facilities is expected to rise faster than the average income of state residents.  Incorrect- If this is so then this gives another reason to go for the program scheme. This Strengthens the argument.

D. Some of the state’s healthcare facilities are contemplating significant cost increases next year.  Incorrect- This again strengthens the argument as people will be spending less money if they go with the healthcare facilities

E. The prepayment plan would not cover the cost of elective procedures, such as cosmetic surgery, even if the procedures are per formed at state-run healthcare facilities.  Incorrect- This single alone factor doesn't outweighs the overall cost benefit of the program.

Dereno · Answer

The question discusses about “ PAY NOW, USE LATER “ scheme pertaining to healthcare.

Where the residents in the age band (18-39) are asked to pay at current rates for any future medical care they might need after the age of 65. So, you pay now ( 18-39) at current rates, and use the services after 65 years.

The scheme comes with a condition : You can avail the service after 65 yrs,  provided  you use the state run healthcare facility. All extra cost incurred in that facility will be taken care of.

The conclusion is join now, to defray from spending more later. So, the caution the public to “  Think wisely, Act immediately ” .

We need to find a reason, why the resident of the state need not participate ?

A. Many residents are unsure about where in the state they will retire, and therefore which state-run healthcare facility they will eventually use.

The questions uses the word State to denote a geographic boundary. This can connote one of the 50 states in USA, or a state covering the entire country. Moreover, with such ambiguity, this option cannot be considered a viable option to reject the scheme. Hence, Wrong.

B. For more than eighty-nine percent of state residents, the amount of money earned by putting the prepayment funds in an interest-bearing account today will be greater than the total cost of future healthcare at a state-run facility.

The option have used the word 89% , to describe the majority favours this decision which is being put forward. The option goes further to mention, the interest accrued along with the investment made now , will definitely be more than the future health care cost at a state run facility.

So, most residents of the state, will opt for the interest based scheme, which gives huge benefits comparatively to the pay now, use later health care scheme of the state. Hence, this is a valid argument to reject the scheme.

C. The average cost of healthcare at the state’s facilities is expected to rise faster than the average income of state residents.

The option speaks about average, which is a dicey measure can be skewed either side to make a compelling statement. If health care costs rise faster compared to average incomes in the future. The pay now, use later scheme should be best option to enroll. This option actually strengthens rather than weakening. Hence, wrong.

D. Some of the state’s healthcare facilities are contemplating significant cost increases next year.

Discussions or brain storming over a new plan about significant cost rise next year, has nothing to do with rejection of the scheme. Next year vs 30 yrs down the lane changes cannot be compared with. Hence, Wrong.

E. The prepayment plan would not cover the cost of elective procedures, such as cosmetic surgery, even if the procedures are per formed at state-run healthcare facilities.

The option introduces a new word - cost of elective procedures and its future price implications and approvals. The question stem, doesn’t mention about specific procedures inclusion or exclusion. Secondly, not everyone is going to opt for elective procedures like cosmetics. The proportion of people willing to do cosmetic surgery at the age of 65 years is still unknown. Hence, ruled out.

Option B

officiisestyad · Answer

But they have mentioned it to be a "particular state"

Dereno · Answer

Yes, it’s context specific. Even governments can be called a state in certain situations.

So, it’s a term used to describe the situation in general. Like the stories we have heard from our elders, once upon a time, there was king ruling a country. We are bothered about how the story is moving, not about the country.

laborumplaceat · Answer

A: any state-run health facility can be used to seek treatment as there is no specific facility which this program is for - all state-run facilities are a part of this program.
B: If the residents can get more money on putting their money in another interest-bearing account, then it will be a better option. 
C: This gives a reason to participate in the program.
D: This also gives a reason to participate in the program.
E: The question says "future medical NEEDS" - So this option is out of scope - as elective procedures are not "needs"
B is correct.

Bunuel · Answer

KAPLAN OFFICIAL SOLUTION:

Correct Choice: (B)

The argument states that residents should enroll in the plan in order to save money. If, as choice (B) suggests, residents would make more money by investing the equivalent costs now and paying the expenses themselves when the time comes, then the argument is wrong: it would not be financially prudent to take part in the program. Since the program covers participants at any state-run facility, residents should be able to move anywhere within the state, and still fall under the programs guidelines, and choice (A)is wrong.

Choices (C) and (D) both strengthen the argument by stating that it will be less expensive to pay for the procedures now. Even if some procedures will not be covered, the fact that many others are covered still suggests that the plan is a good option; so choice (E) is also incorrect.

A program instituted in a particular state allows residents aged 18 to

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A program instituted in a particular state allows residents aged 18 to

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