Tuesday, March 27, 2012

Primary and Secondary Spaces

I wrote a post on the use of grants in the Medical Savings and Loan.

The post is necessarily awkward.

In creating a design one needs to know the difference between primary space and spaces.

In the Medical Savings and Loan, your savings are the primary space. A person with a $50K job will make about $2,000,000.00 in a 40 year career. Let's assume that it is reasonable for people to pay the first 15% of their care. This is $300,000.

Of course some people have more medical expenses than their income can handle.

If someone has extraordinary expenses, he will need a supplement from somewhere. To handle these exceptions, the program creates a pool of grants.

The supplements are a secondary space.

I chose to use grants as the supplement rather than high deductible insurance because insurance is a legal product that all of the transactions to be handled as if they were legal claims.

The article on grants is really awkward because you have to understand how the savings accounts work, and you have to understand that insurance is a legal product.

Every transaction that takes place in insurance (and socialized care for that matter) must be handled as if it were a legal claim. This is why medical billing is so awkward. Doctors have to fill out extra paperwork because the patient is paying for the care with a legal claim.

My dog gets better health care than me for less money. The reason this happens is because the vet is providing a fee for service whereas the doctor is involved in complex chain of lawsuits that would give Rube Goldberg the willies.

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