Joseph: Health insurance premiums are growing at an alarming

[BTGmoderatorDC]

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

[deloitte247]

OPTION A:- INCORRECT
This option is not important to the argument and cannot serve as an assumption required by the argument.

OPTION B:- CORRECT
This is the assumption to which the argument is built on. This option implies that unnecessary tests and diagnosis procedures is the cause for the significant portion of bill sent to insurers and is passed on to the customers in form of increased insurers premiums.

OPTION C:- INCORRECT
This option has deviated from the main concern of the argument which is the inflated nature of the health insurance premiums to other insurance companies like auto and home which makes it impossible to serve as an assumption required by the argument.

OPTION D:- INCORRECT
The tests and diagnostics in question are termed 'unnecessary' not expensive and even if the patients are not as likely as doctors to choose the most expensive diagnostic and tests, it doesn't give a reason for the cause of the inflation.

OPTION E:- INCORRECT
This cannot serve as an assumption required by the argument because it cannot give any logical reason that can be attached to the reason that can be attached to the reason for the alarming rate at which health insurance premium is growing.