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What's Blue Cross All About?

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




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