Health Savings Accounts

All transactions in the Medical Savings and Loan are cash transactions paid on delivery (most likely paid as an electronic funds transfer). Cash transactions are the most efficient way to pay for service. Paying cash on deliver dramatically reduces billing costs, and allows the care provider to develop a more fluid product.

Using a cash on delivery system creates a structure where the patient realizes the full cost of care at the point of sale. This elminates surprises that show up in bills. If there is a dispute about the bill, the dispute will be initiated at the point of sale allowing for a more rapid resolution of the dispute.

Payments in the Insurance Paradigm

Note, if a policyholder does not have the funds in their HSA

In contrast, the insurance paradigm uses an extremely convoluted system where all transactions are legal claims against an insurance pool.

In the insurance paradigm, the doctor and patient enter into a legal claim against the insurance. The claim then runs through a confrontational displute resolution process. This process creates a conflict where there does not need to be a conflict.