The graph shows the distribution of funding sources for medical expenses incurred at a certain hospital in Country C for...
GMAT Graphics Interpretation : (GI) Questions
The graph shows the distribution of funding sources for medical expenses incurred at a certain hospital in Country C for the years 2005-2014. For example, in 2005, 61.7% of medical expenses incurred at this hospital were paid by the patient's primary insurance, 6.3% by the patient's secondary insurance, and 32.0% by the patient. In the years 2009, 2010, and 2011, the government of Country C provided a subsidy that paid a small percent of the medical expenses.
Owning the Dataset
Table 1: Text Analysis
| Text Component | Content/Meaning |
|---|---|
| Context | Distribution of funding sources for medical expenses at a hospital in Country C (2005-2014) |
| Payment sources identified | Primary insurance, secondary insurance, patient, (and government subsidy in 2009-2011) |
| Example breakdown (2005) | \(61.7\%\) primary insurance, \(6.3\%\) secondary insurance, \(32.0\%\) patient |
| Special case | Government subsidized a small percent in 2009, 2010, 2011 |
| Data type | Percent paid per source per year, all sum to 100% |
Table 2: Chart Analysis
| Chart Aspect | Description |
|---|---|
| Chart type | 100% stacked bar chart (years 2005-2014 on X-axis, percent of expense on Y-axis) |
| Categories shown | Primary insurance, secondary insurance, patient, government subsidy |
| Trend primary ins. | Decreases from \(61.7\%\) (2005) to \(50.4\%\) (2013) |
| Trend patient | Increases from \(32.0\%\) (2005) to \(43.3\%\) (2013) |
| Trend secondary ins. | Remains stable around 6-6.3% throughout |
| Gov't subsidy | Present only in 2009, 2010, 2011 (small percent) |
Key Insights
Over the ten-year period, the portion of medical expenses paid by patients rose steadily, while coverage from primary insurance declined. Secondary insurance remained a small, constant contributor. The government only briefly subsidized expenses (2009-2011), indicating a short-term intervention. By 2013, patients bore a much higher share of costs than in 2005.
Step-by-Step Solution
Question 1: Finding the Year with the Greatest Patient-to-Primary Insurance Ratio
Complete Statement:
The ratio of the percent paid by the patient to the percent paid by the patient's primary insurance was greatest in the year [BLANK 1]
Breaking Down the Statement
- Statement Breakdown 1:
- Key Phrase: ratio of the percent paid by the patient to the percent paid by the patient's primary insurance
- Meaning: Calculate the value by dividing the patient payment percentage by the primary insurance payment percentage for each year.
- Relation to Chart: Use the percentages for patient payments and primary insurance payments shown for each year in the chart.
- Important Implications: A larger ratio means patients are paying more relative to what insurance is covering. We're looking for the largest such value among the given years.
- Key Phrase: ratio of the percent paid by the patient to the percent paid by the patient's primary insurance
- Statement Breakdown 2:
- Key Phrase: was greatest
- Meaning: We seek the highest value of this ratio over the specified years.
- Relation to Chart: Look for the year where patient percentage is relatively high and primary insurance percentage is relatively low.
- Important Implications: This is likely to happen in later years if the patient percentage rises and insurance percentage falls.
- Key Phrase: was greatest
- What is needed: Determine in which year, among the provided choices (2005, 2007, 2009, 2011, 2013), the ratio: \(\frac{\text{patient }\%}{\text{primary insurance }\%}\) is the greatest.
Solution:
- Condensed Solution Implementation:
Estimate or calculate the ratio for each of the years in the answer choices and compare the results. - Necessary Data points:
Patient and primary insurance payment percentages for 2005, 2007, 2009, 2011, and 2013: 2005 (\(32.0\%, 61.7\%\)), 2007 (\(32.4\%, 61.7\%\)), 2009 (\(33.7\%, 58.3\%\)), 2011 (\(38.5\%, 53.3\%\)), 2013 (\(43.3\%, 50.4\%\)).- Calculations Estimations:
Ratios: 2005: \(32.0/61.7 \approx 0.52\); 2007: \(32.4/61.7 \approx 0.52\); 2009: \(33.7/58.3 \approx 0.58\); 2011: \(38.5/53.3 \approx 0.72\); 2013: \(43.3/50.4 \approx 0.86\). - Comparison to Answer Choices:
2013 has the largest ratio (\(\approx 0.86\)), higher than all the other listed years. Therefore, 2013 is the answer.
- Calculations Estimations:
FINAL ANSWER Blank 1: 2013
Question 2: Finding the Year with the Least Patient-to-Primary Insurance Ratio
Complete Statement:
The ratio of the percent paid by the patient to the percent paid by the patient's primary insurance was least in the year [BLANK 2]
Breaking Down the Statement
- Statement Breakdown 1:
- Key Phrase: ratio of the percent paid by the patient to the percent paid by the patient's primary insurance
- Meaning: Calculate the value by dividing the patient payment percentage by the primary insurance payment percentage for each year.
- Relation to Chart: Use the patient and primary insurance percentages from the chart for each year.
- Key Phrase: ratio of the percent paid by the patient to the percent paid by the patient's primary insurance
- Statement Breakdown 2:
- Key Phrase: was least
- Meaning: We seek the smallest value (lowest ratio) over the specified years.
- Relation to Chart: Look for the year where patient percentage is relatively low and primary insurance percentage is relatively high.
- Key Phrase: was least
- What is needed: Determine in which year, among the provided choices (2006, 2008, 2010, 2012, 2014), the ratio: \(\frac{\text{patient }\%}{\text{primary insurance }\%}\) is the smallest.
Solution:
- Condensed Solution Implementation:
Estimate or calculate the ratio for each of the years in the answer choices and compare the results. - Necessary Data points:
Patient and primary insurance payment percentages for 2006, 2008, 2010, 2012, and 2014: 2006 (\(32.6\%, 61.4\%\)), 2008 (\(31.8\%, 62.0\%\)), 2010 (\(36.6\%, 53.8\%\)), 2012 (\(42.4\%, 51.3\%\)), 2014 (\(42.7\%, 51.1\%\)).- Calculations Estimations:
Ratios: 2006: \(32.6/61.4 \approx 0.53\); 2008: \(31.8/62.0 \approx 0.51\); 2010: \(36.6/53.8 \approx 0.68\); 2012: \(42.4/51.3 \approx 0.83\); 2014: \(42.7/51.1 \approx 0.84\). - Comparison to Answer Choices:
2008 has the smallest ratio (\(\approx 0.51\)), lower than all the other listed years. Therefore, 2008 is the answer.
- Calculations Estimations:
FINAL ANSWER Blank 2: 2008
Summary
Over the years, the share of medical expenses paid by patients increased while the share paid by primary insurance decreased. Thus, the patient-to-primary insurance ratio was the greatest in 2013 (about \(0.86\)) and the least in 2008 (about \(0.51\)).
Question Independence Analysis
These blanks are independent: Blank 1 asks for the year with the highest patient-to-insurance ratio from one group of years, while Blank 2 asks for the lowest from a separate group. Finding one does not determine the other.