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billing error

Expert replies
by ansumania » Tue May 18, 2010 9:28 pm
hi,

your comments on this question pl......

Experts estimate that insurance companies' tardiness in paying doctors for legitimate medical claims adds approximately 10 percent in overhead costs for physicians. Insurance companies counter that the tardiness sometimes results from billing errors made by the doctors themselves. Since dealing with these billing errors costs the insurance companies time and money, it is clear that insurance companies do not have a significant economic incentive to delay claim payments to doctors.

Which of the following pieces of information, if true, weakens the conclusion above?
A-Some doctors who submit accurate bills to insurance companies still receive tardy payments.

B-The cost to the insurance companies to process incorrect bills from doctors' offices is roughly equivalent to the increased costs that physicians accrue as a result of tardy payments from insurance companies.

C-A rising proportion of medical claims submitted by doctors to insurance companies are deemed illegitimate by those insurance companies.

D-The billing errors made by doctors' offices are typically very minor, such as the submission of a claim with an outdated patient home address.

E-The overhead costs incurred by doctors as a result of delayed insurance payments result in an increase in the premiums paid by consumers to health insurance companies that far exceeds any increase in the fees paid to doctors by insurance companies.
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Source: — Critical Reasoning |

by boazkhan » Tue May 18, 2010 9:52 pm
IMO E is the answer. What is the OA?
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by saurabhmahajan » Wed May 19, 2010 12:49 am
my vote for E
OA plz.
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by thephoenix » Wed May 19, 2010 3:00 am
conclusion for the argument is that insurance company does not gets benefited by delaying payments
any choice which shows that its getting benefited in some respect is correct one
E sud be the ans
OA pls
Many of the great achievements of the world were accomplished by tired and discouraged men who kept on working
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by ansumania » Wed May 19, 2010 6:30 am
hi,

OA is E.

Can't D serve as the answer? As minor error will not lead to a consumption of lot of money and time, so insurers will make some profit
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by vk_vinayak » Sun Jun 24, 2012 10:24 pm
ansumania wrote:hi,

OA is E.

Can't D serve as the answer? As minor error will not lead to a consumption of lot of money and time, so insurers will make some profit
Conclusion: it is clear that insurance companies do not have a significant economic incentive to delay claim payments to doctors.

We need to weaken it.
D. The billing errors made by doctors' offices are typically very minor, such as the submission of a claim with an outdated patient home address.
If the error is minor, it should not take much time to resolve, hence too much delayed is unwarranted. But sometime processes tend to be complicated, and it can result in delay. This option does not mention/prove anything about economic incentive, hence it doesn't weaken.
E-The overhead costs incurred by doctors as a result of delayed insurance payments result in an increase in the premiums paid by consumers to health insurance companies that far exceeds any increase in the fees paid to doctors by insurance companies.
This shows that delay means that consumers need to pay additional premiums to the insurance companies. This option clearly shows the economic motive behind the delay, and thus this option clearly weakens the the argument.

Hope it helps.
- VK

I will (Learn. Recognize. Apply)
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