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Two computer companies, Garnet and Renco

Expert replies
by manhhiep2509 » Tue Jan 21, 2014 11:30 pm
Two computer companies, Garnet and Renco, each pay Salcor to provide health insurance for their employees. Because early treatment of high cholesterol can prevent strokes that would otherwise occur several years later, Salcor encourages Garnet employees to have their cholesterol levels tested and to obtain early treatment for high cholesterol. Renco employees generally remain with Renco only for a few years, however. Therefore, Salcor lacks any financial incentive to provide similar encouragement to Renco employees.

Which of the following, if true, most seriously weakens the argument?

A. Early treatment of high cholesterol does not eliminate the possibility of a stroke later in life.
B. People often obtain early treatment for high cholesterol on their own.
C. Garnet hires a significant number of former employees of Renco.
D. Renco and Garnet have approximately the same number of employees.
E. Renco employees are not, on average, significantly younger than Garnet employees.
------------
OA: C

Hi.

I do not understand the link between "Renco employees generally remain with Renco only for a few years" and "Salcor lacks any financial incentive".

Does this mean if Renco employees leave the company before they suffer stroke, Salcor will not have to pay for the employees treatment? Is that why the agency has no financial incentive?

Is the link a common knowledge or an inference we could get from the stimulus?

Thank you.
Join the discussion
Source: — Critical Reasoning |

by KevinRocci » Wed Jan 22, 2014 11:38 am
I think I might be able to shed some light on this issue. :)
I do not understand the link between "Renco employees generally remain with Renco only for a few years" and "Salcor lacks any financial incentive".

Does this mean if Renco employees leave the company before they suffer stroke, Salcor will not have to pay for the employees treatment? Is that why the agency has no financial incentive?
Salcor is the insurance provider and they do not have a financial incentive to encourage Renco employees to have their cholesterol checked because they don't stick around for very long. So you are right. If employees leave the company and then have a medical problem Salcor does not have to pay for the treatment. It probably requires money, time, and effort to talk to employees about being treated early so Salcor doesn't see any reason to encourage employees at Renco to see the doctor.

Does that make sense?
Is the link a common knowledge or an inference we could get from the stimulus?
I don't think this is common knowledge, but I could be wrong. If you are unfamiliar with the concept of health insurance, then this might be a little bit tougher. Health insurance in America is a bit confusing so I don't blame anyone for not really understanding what is going on. The key concept to know is that many American receive their health insurance through there employer, so when they change jobs or lose their job, they lose their insurance. They might be able to get the same plan when they find another job, but that is highly unlikely or extremely difficult.

I hope that this helps you understand this question a little bit better. :)

Cheers :)
Join the discussion

by KevinRocci » Wed Jan 22, 2014 11:38 am
I think I might be able to shed some light on this issue. :)
I do not understand the link between "Renco employees generally remain with Renco only for a few years" and "Salcor lacks any financial incentive".

Does this mean if Renco employees leave the company before they suffer stroke, Salcor will not have to pay for the employees treatment? Is that why the agency has no financial incentive?
Salcor is the insurance provider and they do not have a financial incentive to encourage Renco employees to have their cholesterol checked because they don't stick around for very long. So you are right. If employees leave the company and then have a medical problem Salcor does not have to pay for the treatment. It probably requires money, time, and effort to talk to employees about being treated early so Salcor doesn't see any reason to encourage employees at Renco to see the doctor.

Does that make sense?
Is the link a common knowledge or an inference we could get from the stimulus?
I don't think this is common knowledge, but I could be wrong. If you are unfamiliar with the concept of health insurance, then this might be a little bit tougher. Health insurance in America is a bit confusing so I don't blame anyone for not really understanding what is going on. The key concept to know is that many American receive their health insurance through there employer, so when they change jobs or lose their job, they lose their insurance. They might be able to get the same plan when they find another job, but that is highly unlikely or extremely difficult.

I hope that this helps you understand this question a little bit better. :)

Cheers :)
Join the discussion