A Medigap Policy Fills the Gap Between Medical Costs and Medical

question 99

Multiple Choice

A Medigap policy fills the gap between medical costs and medical payments from

• A) Home health care agencies.
• B) Hospital and medical service plans.
• C) Medicare.
• D) Medicaid.
• E) Private insurance companies.

---

Definitions:

Target Cash Balance

The optimal amount of cash a company seeks to maintain to handle operational and transactional needs efficiently.

Carrying Costs

Expenses associated with holding inventory, including storage costs, insurance, and loss due to obsolescence.

Shortage Costs

Expenses incurred from inventory deficits, including lost sales and additional costs for expedited shipping.

Adjustment Costs

Expenses incurred in the process of modifying a business operation or strategy, including restructuring or equipment changes.