What's Blue Cross All About?

Blue Cross was started in 1929 by Justin Fordemployees and they are also very important in
Kimball, at Baylor University in Dallas, Texas. Itthe administration of Social Security. There is a
was developed to guarantee teachers 21 days ofproblem with health insurance in the United States.
hospital care for $6 a year. Later on the plan wasThere is a conflict between the need for the
enlarged to other people in the Dallas area andinsurance company to make money versus the
then throughout the country.need of their clients to remain healthy. This need
In 1939 the term Blue Cross was used to includeto make money has become so uncontrolled that
other plans as well. Blue Cross is a name used byone third of the population in the US can not
an association of health insurance plans throughoutafford medical insurance and medical bills today
the United States.are the major cause for bankruptcies. This is why
It was developed in 1929, by Justin Ford Kimball,state and federal regulation of health insurance
at Baylor University in Dallas, Texas. The first plancompanies is necessary.
guaranteed teachers The plan was extended toOn the other hand medical insurance companies
other employee groups in Dallas, and thencould hypothetically face unforeseen events such
nationally. The American Hospital Associationas the chicken flu where a large percentage of
(AHA) adopted the Blue Cross symbol in 1939 astheir clients all of a sudden face horrendous
the emblem for plans meeting certain standards.hospital bills.
So as it stands today Blue Cross is anTheoretically this could bankrupt the insurance
independent membership association working on acompany within a very short timeframe. So to
service basis and providing protection against theprevent this situation medical insurance companies
costs mainly of hospital care. Benefit paymentsuse a variety of checks and balances to limit
are made directly to the hospital. Benefits varypayments to beneficiaries.
among various Blue Cross associations.And of course it is a well-known fact that those
And then there is Blue Shield which, rather thanseeking health insurance are also those most likely
covering hospital care, provides protection on ato have medical problems being present or future
service basis against the cost of surgical andones. It is also known that if the cost of
medical care in a limited geographical area. Thehealthcare to the beneficiary is very low than the
actual Blue Cross, which was a blue Greek Cross,use of medical benefits will be much greater than
was created by the artist Joseph Binder underif the cost is substantial.
the auspices of E A van Steenwijk who was theSo to find the balance where medical services are
Company secretary of Blue Cross and Blue Shieldavailable when needed but not abused to the
of Minnesota.extend that for every paper cut you will make a
The Blue Cross began now to be used in othervisit to the doctor proper safeguards should be in
parts of the country as well. At present it is aplace.
national trade organization linking 40 healthSo in theory, if people would exercise, would eat
insurance companies in the US, Canada and Puertohealthy food, would avoid addictive substances,
Rico together.this would lower health insurance prices because
Supposedly, Blue Cross operations are consideredthe insurance companies would pay fewer doctor
to happen as franchises in specifically designatedbills.
regions. At present these services are available inHowever, you could then also say that too much
every state wihin the United States and everyof the insurance premiums would be paid out in
Canadian provinceexecutive salaries or kept as profits by the
Blue Cross is very prevalent in providing coveragecompany.
to State as well as Federal government