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Hero or villain: Blue Cross Blue Shield (Poll Closed)

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Total Votes: 217
3 Comments

  • Frank Poggio - 9 years ago

    The history of BC/BS is fascinating. Another example of how health providers did it to themselves (like the recent MU fiasco). Here's a short history...

    In 1939 the AMA started Blue Shield and in 1942 AHA created Blue Cross because health care costs were too high and volume was down! So to drum up business they both came up with the idea to sell a medical insurance policy. Unions loved it and employers thought of it as a 'low' cost bene! One insurance for both was not possible because they didn’t trust each other and physicians wanted to remain as independent as possible. Good old American individualism! The split was perpetuated when the Feds created Medicare in 1966. The Feds could have forced the two together (ala ACO) but the politics were too tenuous so the Feds created two separate payment programs Medicare Part A (Hospital) and Medicare Part B (doctor) to mirror BC/BS.

    Then in 1972 as the health insurance industry matured the Federal Trade Commission
    became concerned that doctors and hospitals selling insurance was a conflict of interest. The
    AMA had to spin-off Blue Shield, and AHA split with Blue Cross. As time moved on and health care costs grew, as the Blues saw themselves more as insurance companies than part of the medical establishment, many of the Blues merged and eventually morphed into today’s United Health, Anthem, Wellpoint, etc.

    So what’s different today? Not much, providers are trying to protect their revenue and since the friendly Blues have morphed into nasty enemies, why not create your own more friendly insurance program!
    So here we go again...as Mr. Dylan said “When will they ever learn?”

  • Mobile Man - 9 years ago

    Necessary evil? Absolute power corrupts absolutely? Follow the money? The "business of healthcare" is an oxymoron? You name it...

  • David Jacobowitz - 9 years ago

    There is no such thing as "Blue Cross Blue Shield". Instead there are dozens of distinct regional companies that share the name and possess disparate cultures and track records

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