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