What You Should Know About Blue Cross

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