The Blue Cross Story by Joe Folger
The Blue Cross and Blue Shield Association is the largest
private health insurance system in the United States (including
Puerto Rico) and Canada. It is composed of 55 independent,
locally operated Blue Cross and Blue Shield Plans that
collectively provided health care coverage to over 88 million
people in 2003.
For its beginnings we need to go back to 1929 to a man named
Justin Ford Kimball when he became vice president of Baylor
University in Dallas, Texas. He was an experienced
administrator, as he headed the College of Medicine, School of
Nursing, College of Dentistry, and the university hospital.
Soon after taking the job, he developed a health plan that
guaranteed teachers 21 days of hospital care for 50 cents a
month. The plan soon spread to other employee groups in Dallas,
and then similar plans began to crop up nation-wide.
Meanwhile, around the same time that Kimball was creating his
plan, the Blue Shield concept was becoming popular in the lumber
and mining camps of the Pacific Northwest. Serious injuries and
chronic illness were common among these workers who were in very
hazardous and dangerous jobs.
Their employers saw the need to provide medical care for them
and they arranged with physicians to pay them a monthly fee to
take care of the medical needs of the workers. These programs
would later become what is known as the Blue Shield Plans.
As for the cross symbol, it was first used in a 1934
advertisement for the Hospital Service Association, which later
became known as Blue Cross and Blue Shield of Minnesota.
Joseph Binder, a Viennese artist, was hired by Company secretary
E.A. van Steenwyk to create a poster that included a blue Greek
cross. Van Steenwyk used the symbol to identify his company's
health plans and then Blue Cross began to use it in other parts
of the country.
In 1939, the American Hospital Association, which was based in
Chicago, began to use the Blue Cross symbol to indicate that
health plans around the country met certain standards.
The AHA continued to use the symbol until 1960 when the Blue
Cross Association was founded. The two organizations remained
affiliated until 1972.
The shield symbol was created in Buffalo, New York by Carl
Metzger in 1939 and the first official Blue Shield plan was
founded in California that same year. Carl Metzger was an early
pioneer in the Blue movement and he wanted a design that would
distinguish the new medical service plan.
It soon flourished as the number of Blue Shield Plans kept on
growing. In 1948 the symbol was informally adopted by nine plans
called the Associated Medical Care Plan, which was later renamed
the National Association of Blue Shield Plans.
Over the years, the Blue Cross and Blue Shield healthcare
insurance concepts took hold. The Blue Cross Blue Shield
Association was formed in 1982 by a merger of the Blue Cross
Association and the National Association of Blue Shield Plans.
When the Blue Cross and Blue Shield organizations merged, their
brand symbols also merged and became one of the most familiar
symbols in America.
To show you how large it has become, in 2003, the Blue Cross and
Blue Shield Association took in $182.7 billion in revenue. The
evolution of managed health care in the United States is
intimately linked to the designs of Blue Cross- Blue Shield.
Joe Folger with his extensive insurance experience writes for
http://www.bluecrosstips.com and further information about the
Blue Cross plans can be found there.
About the author:
Joe Folger with his extensive insurance experience writes for
http://www.bluecrosstips.com and further information about the
Blue Cross plans can be found there.
