A Little About The History Of Blue Cross Blue Shield by Art Gib

Did you know that Blue Cross Blue Shield is the largest provider of health insurance coverage in America? In fact, the company brand insures approximately 1 in every 3 Americans which adds up to over 100 million people! The history of the company stretches back 80 years and since then BCBS has been a respected member of the health care community that continues to grow and provide insurance help for more and more people each and every day. Here's a little bit about the history of Blue Cross Blue Shield.
Its Beginnings
Lifelong educator and lawyer Justin Ford Kimball was vice president of Baylor's colleges of Medicine, Nursing, Dentistry as well as its hospital in Dallas when he noticed that Baylor Hospital had many unpaid bills, many of which were owed by school teachers who could not afford to pay them. Motivated not only by the loss of income, but also by his sympathy for teachers, Kimball developed a pre-paid hospital plan that would eventually form the beginnings of Blue Cross Blue Shield. This prepayment plan was a huge success since teachers could more easily save a little money each month to cover future possible hospitalization rather than pay for it in one big chunk later.
The success of the Texas plan soon caught on, and within ten years of its inception, the program boasted an enrollment of 1 million. Health care coverage soon included maternity, and in 1933 the first "Blue Cross" baby was born in North Carolina. Amazingly, the cost of delivering the baby as well as the mother's 10 day hospital stay totaled a mere $60! The Blue Cross symbol itself was commissioned in 1934 as an advertising gimmick meant to increase brand recognition, and it has remained with the company ever since. The Blue Shield was added five years later.
It was during the war years in the 1940's that companies began to offer health benefits as part of an overall compensation package for employees. However, BCBS offered not only group plans through businesses, but continued to offer great rates and coverage to individuals much as it still does today.
By the mid 1950's, thanks in large measure to the popularity of employer-based health benefits, the percentage of Americans covered under health insurance stood at 70%, up a full 60 percentage points from the previous decade.
By the year 2000, it was Blue Cross that processed the majority of Medicare claims, and its membership stood at 88 million: more than any other insurer in the country. BCBS continues to fill America's health care needs, even in difficult times, by providing a wide array of products at the lowest possible prices.