Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Ethical Dilemma, Financial Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to, sleep apnea, which is a fast-growing health complaint among Americans, has triggered a set of deceptive and unethical measures by US health insurers to shift the cost of CPAP machines through price gouging to the people who must use them to remain healthy.

1. Calculate the percentage of the transaction that Cigna gets for filters and masks.
2. What service did Cigna provide to receive this percentage and how would you as the accountant record the transaction?
3. What was the most interesting thing you learned in this article?

Staff writer. (2018) Insurance companies gouge on CPAP machines and consumables, use wireless modems to spy on your usage. Boing –, Nov. 23 (Retrievable online at