Justin Ford Kimball started Blue Cross in 1929 at Baylor University in Dallas, Texas. It was developed to guarantee teachers 21 days of hospital care for $6 a year. Later, to other people in the Dallas area and then throughout the century, the plan was enlarged.
Other plans were also included by using the term Blue Cross in 1939. An association of health insurance plans used the name Blue Cross throughout the United States.
The teachers were guaranteed by the first plan. To other employee groups in Dallas, the plan was extended and then nationally. The Blue Cross was adopted as the emblem for plans meeting certain standards by the American Hospital Association (AHA) in 1939.
Working on a service basis and providing protection against the costs mainly of hospital care, Blue Cross is an independent membership association so as it stands today. Hospitals get the benefits paid directly. Among various Blue Cross associations benefits vary.
Now, in other parts of the country, the Blue Cross began to be used as well. In the US, Canada and Puerto Rico together, it is a national trade organization linking 40 health insurance companies, at present.
In specifically designated regions, Blue Cross operations are considered to happen as franchises, supposedly. In every state within the United States and every Canadian province, these services are available at present. To State and Federal government employees, in providing coverage, Blue Cross is very prevalent and also in the administration of Social Security, they are very important. In United States, there is a problem with health insurance. Between the need to make money for the insurance company versus the need, to remain healthy, of their clients, is the conflict.
Medical insurance is not affordable to one third of US population because of uncontrollable need to make money and today’s major cause for bankruptcies is medical bills. This is the reason there is necessity for regulation of health insurance companies by state and federal government.
Within a very short timeframe, this could bankrupt the insurance company as said theoretically. To limit payments to beneficiaries, a variety of checks and balances are used by medical insurance companies to prevent this situation.
Being present or future ones, those who are most likely to have medical problems seek for health insurance, which is of course is a well-known fact. If the cost is substantial, the use of medical benefits is very high than the cost of healthcare to the beneficiary, will be much greater, is also known.
So to find the balance where medical services are available when needed but not abused to the extend that for every paper cut you will make a visit to the doctor proper safeguards should be in place.
However, you could then also say that too much of the insurance premiums would be paid out in executive salaries or kept as profits by the company., the chances are the inventory and related photos or tape may also be destroyed.