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3 years ago

What is fraud and how does it impact health care costs?

1 answer:

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The National Health Care Anti-Fraud Association (NHCAA) estimates that the financial losses due to health care fraud are in the tens of billions of dollars each year.

Whether you have employer-sponsored health insurance or you purchase your own insurance policy, health care fraud inevitably translates into higher premiums and out-of-pocket expenses for consumers, as well as reduced benefits or coverage. For employers-private and government alike-health care fraud increases the cost of providing insurance benefits to employees and, in turn, increases the overall cost of doing business. For many Americans, the increased expense resulting from fraud could mean the difference between making health insurance a reality or not.

However, financial losses caused by health care fraud are only part of the story. Health care fraud has a human face too. Individual victims of health care fraud are sadly easy to find. These are people who are exploited and subjected to unnecessary or unsafe medical procedures. Or whose medical records are compromised or whose legitimate insurance information is used to submit falsified claims.

Don't be fooled into thinking that health care fraud is a victimless crime. There is no doubt that health care fraud can have devastating effects.

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Signal mistakenly produced 1,000 defective cell phones. The phones cost $65 each to produce. A salvage company will buy the defe

Contact [7]

Answer:

It is more profitable to continue to rework the phones and sell them.

Explanation:

Giving the following information:

Signal mistakenly produced 1,000 defective cell phones.

The $65 per phone is a sunk cost. It will remain on both decisions, therefore, we will not take into account to make the decision.

Sell as it is:

Income= 33*1,000= $33,000

Rework:

Costs= 88*1,000= $88,000

Sales= 144*1,000= $144,000

Total gain= $56,000

It is more profitable to continue to rework the phones and sell them.

3 0

3 years ago

The president of the company you work for has asked you to evaluate the proposed acquisition of a new chromatograph for the firm

Tems11 [23]

Answer:

Part A)

Year 0 net cash flow would comprise of basic price, modification cost and requirement for net working capital. The formula for cash flow in Year 0 would be:

Year 0 Net Cash Flow = -Basic Price - Modification Cost - NWC

______________

Using the values provided in the question, we get,

Year 0 Net Cash Flow = -190,000 - 47,500 - 9,500 = -$247,000

______________________

Part B:

Year 1, 2 and 3 would required adjustment for depreciation charges (under MACRS) against expected savings. The depreciation rates for 3 year class asset would be 33%, 45% and 15% for Year 1, Year 2 and Year 3 respectively.

Depreciation would be calculated on the equipment's basic price and modification cost.

The formula that can be used to calculate the net operating cash flow would be:

Net Operating Cash Flow = (Sales - Depreciation)*(1-Tax Rate) + Depreciation

______________

Using the values provided in the question, we get, the table in the attached file

Important Information:

Depreciation (Year 1) = (190,000 + 47,500)*33% = $78,375

Depreciation (Year 2) = (190,000 + 47,500)*45% = $106,875

Depreciation (Year 3) = (190,000 + 47,500)*15% = $35,625

______________________

Part C:

Additional non operating cash flow would consist of after-tax salvage value and return of net working capital. Relevant formulas are:

Additional Non Operating Cash Flow = After Tax Salvage Value + Return of Net Working Capital

After Tax Salvage Value = Sales Value +/- Tax on Loss/Gain from Sale of Asset

Loss/Gain from Sale of Asset = Sales Value - Book Value

Book Value = (Basic Price + Modification Cost)*(1-(33%+45%+15%))

______________

Using the above mentioned formulas, we get,

Book Value = (190000 + 47500)*(1-(33%+45%+15%)) = $16,625

Gain on Sale of Equipment = 66,500 - 16,625 = $49,875

Tax on Gain = $49,875*30% = $14,962.50

After Tax Salvage Value = 66,500 - 14,962.50 = $51,537.50

_____________________

Additional (Non Operating) Cash Flow = $51,537.50 + $9,500 = $61,037.50 or $61,038

Explanation:

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3 years ago

If an industry is perfectly competitive or monopolistically competitive, then the government has relatively little reason for co

aivan3 [116]

If an industry is perfectly competitive or monopolistically competitive, then the government has relatively little reason for concern about the extent of competition. In a monopolistically competitive market, products are differentiated by brand and quality but are not perfect substitutes due to this. Perfect competition is basically a theoretical market because the criteria to qualify has a perfect competitive market is hard to meet. The firms all set the price of their product and the market does not have any influence over it.

8 0

3 years ago

For each of the goods, classify them according to whether they are rivalrous, nonrivalrous, excludable or nonexcludable. Rivalro

sergij07 [2.7K]

Answer:

A)A sports team t-shirt:(Rivalrous and Excludable)

B)The air we breath (Nonrivalrous and nonexcludable)

C)Atlantic Bluefin Tuna in the Mediterranean Sea:(Rivalrous and nonexcludable)

D)A toll road in normal traffic:(Nonrivalrous and excludable)

Explanation:

Excludable goods can be regarded as goods whereby there is possibility of preventing consumers that has not paid for that good from accessing it.

Rivalrous goods are types of goods that can only be occupied by a person

there is competition created for their consumption.

Non-excludable goods can be regarded as public goods they are one

which are commonly available within a society for all people. These goods cannot be excluded from certain person.

Non-rivalrous goods can be regarded as public goods whereby the supply of that goods is not affected by consumption of people.

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3 years ago

In the first wave of electronic commerce, radio-frequency devices and smart cards were combined with biometric technologies. In

defon

Answer:

b) In the first wave, Internet technologies were integrated into B2B transactions and internal business processes by using bar codes and scanners to track parts, assemblies, inventories, and production status. These tracking technologies were not well integrated, sending transaction information to each other using a patchwork of communication methods, including fax, e-mail, and EDI.

c) The Internet technologies used in the first wave of electronic commerce were slow and inexpensive. Most consumers used dial-up modems to get connected to the Internet.

Explanation:

The first wave of electronic commerce was mainly a U.S. phenomenon with the web pages in English, on commerce sites, with the e-mail as a tool for relatively unstructured communication. Investors were excited about electronic commerce, creating new enterprises, no matter the investment or the weak baseline ideas were, to have an easy access to start-up and exploit electronic commerce opportunities.

The second wave is characterized by its international scope, with sellers doing business in many countries and in many languages though translation and currency conversion are two impediments to the efficient conduct of global business. The fast increase from 12% in 2004 to 60% in 2009, in broadband connections in homes, and is a key element in the B2C component to make Internet more efficient.

In the second wave, Radio Frequency Identification (RFID) devices and smart cards are being combined with biometric technologies, such as fingerprint readers and retina scanners, to control more items and people in a wider variety of situations.

These technologies are increasingly integrated with each other and with communication systems that allow companies to communicate with each other and share transaction, inventory level, and customer demand information effectively.

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3 years ago