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Medical Insurance

Expert replies
by gmat620 » Mon Mar 16, 2009 7:03 am
The proposed regulation of medical insurance will do little to reduce health care costs for consumers. Even though the bill limits the amount doctors can charge per regular visit, it doesn’t restrict what they can charge for special procedures, nor does it restrict the number of times a doctor can see a patient for the same problem. Therefore, instead of charging the patient once, the doctor can bill the patient several times, and the overall costs for the patient will not decrease.
The author suggests that the regulation will not protect consumers because:

A. special procedures are often done when less expensive procedures would work just as well.
B. there is a loophole in the proposed regulation that will permit doctors to continue to charge patients the same amount of money.
C. regulation of the health care industry is impossible.
D. patients oppose the regulation.
E. regular office visits are more costly than special procedures.
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Source: — Critical Reasoning |

by usualsuspect » Mon Mar 16, 2009 7:32 am
The author says that the consumer would end up paying the same money to the doctor as there is no limit to the number of visits.
This would lead to the same amount in healthcare costs. Hence the choice B.
Aëtou gēras, korydou neotēs.
"An eagle's old age (is worth) a sparrow's youth".
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by bhavikrao » Mon Mar 16, 2009 6:36 pm
IMHO - A

there is nothing that talks about the loop hole.

The first one says that if they do specialized surgeries instead of regular ones, it will cost more as the regulation doesnt restrict the doctors to decide when to do specialized vs regular
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by ssilver0210 » Mon Mar 16, 2009 7:23 pm
B.

The passage speaks about the loophole (without using that specific word) which will allow doctors to continually charge the patient and make the money that the doctor would have made had the regulations never been put into effect.
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I provide GMAT (verbal) tutoring in NYC, and over Skype/E-mail. Please contact [email protected] for further information, or if you have any questions at all.
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by kuldeep4gmat » Mon Mar 16, 2009 9:15 pm
IMO A
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by gmat620 » Tue Mar 17, 2009 12:34 am
OA: B...but how to eliminate A
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by vish150783 » Tue Mar 17, 2009 5:28 am
Answer A is wrong because it says often. The question stem asks WILL which means a confirmation is needed. Hence A is wrong.

Hope this helps!
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by ssilver0210 » Tue Mar 17, 2009 7:39 am
The passage does suggest that doctors will charge for special procedures (and therefore those special procedures will not fall within the regulation which lowers the price of health insurance for patients), but it does not say that doctors will perform special procedure when they should be performing general procedures.

It's a tricky distinction.
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by S0laris » Tue Mar 17, 2009 9:39 am
A- there is nothing in the stimulus about "less expensive procedures", only "special procedures" which are compared in charged price with "regular visits"
thus A is out of scope
we are the champions !
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by Kunal_gmat » Tue Mar 17, 2009 10:11 am
(A) suggests that special procedures are often done instead of inexpensive options. Well, that could be because the Doctor just wants to be extra careful. But as per (B) the doctor is actually doing it on purpose with no hint of good intent. Hence (B).
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by nicolette » Sun May 15, 2016 8:01 am
I still feel A should be the answer
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