Critical Reasoning

Joseph: Health insurance premiums are growing at an alarming rate. This is, in part, because many hospitals bill for unnecessary diagnostics and tests that inflate the subsequent amount that insurers pay out to them. These expenses are then passed on to consumers in the form of increased insurance premiums. Therefore, reducing the number of unnecessary tests performed by health care providers will be effective in controlling growing health insurance premiums.

Which of the following is an assumption required by the argument?

A. Doctors are generally able to determine, with great reliability, which diagnostic procedures and tests would yield the most effective results
B. Tests and diagnostic procedures do not make up an insignificant portion of the bills that are sent to insurers
C. Insurance companies in other industries, such as auto and home, have been able to reduce costs by reducing the number of unnecessary repairs and replacements on claims for automobiles and homes
D. Patients are not just as likely as doctors to choose the most expensive diagnostics and tests.
E. Health insurance premiums have increased twice as fast in the past five years than they have over an average of the past 25 years.

OA B

Source: Veritas Prep

Option A:- Incorrect
This conclusion is valid based on general opinion, but it failed to address the argument in the right manner, diagnostic procedure that will yield the most effective result might also be expensive.

Option B:- correct
The summary of the entire argument is such that not necessary test and diagnostic procedures form the major component of the bills forwarded to the insurance hence reducing them will bring about a consequent reduction in the consumer's health insurance bill.

Option C:- Incorrect
There was no information about insurance on other sectors; the information provided is redundant relative to the argument presented.

Option D:- Incorrect
The patients are not responsible for any result here; the doctors are in charge of matters that have to do with handling patients, diagnostic or tests. Hence the claim here is not required by the argument.

Option E:- Incorrect
There is no statistical data to justify this information relative to the argument above. It is, therefore, an unreliable requirement for the assumption.