Vital decisions blue cross blue shield12/31/2023 ![]() ![]() MARK SMITH (President, California Health Care Foundation): Clearly, part of what Blue Cross intended and, in fact, did, was use the capital that they raised from stock sales to acquire other companies to grow, to get bigger, and in so doing, put them in a position where they could sell to national accounts, 'cause that's where a lot of the money is in the group health insurance market. Mark Smith, president of the California Health Care Foundation, says WellPoint wanted to buy up Blue plans in other states so they could sell their insurance products to national companies. Blue Cross of California was the first to do so and became WellPoint Health Networks. For the first time, they would allow their franchises to convert from nonprofit charities to for-profit public companies. So in 1994, the Blue Cross Blue Shield Association made a big change. If they became for-profit, publically traded companies, they could sell stock and raise a lot of cash. She says many Blue plans saw the stock market as their savior. VARNEY: Laurie Sobel is an attorney with Consumers Union. LAURIE SOBEL (Attorney, Consumers Union): There was basically mounting pressure from the plans that wanted to become for-profit. ![]() Even so, Blue plans around the country were losing market share. In response, most Blue plans started charging sicker and older people more. These new insurers who didn't offer universal coverage attacked younger, healthier people with better deals. Because the Blues accepted all comers, regardless of health status, their rates were typically higher. VARNEY: By the 1970s and '80s, though, Blue plans faced competition from for-profit insurance companies. FAHEY FLYNN (News Anchor): How do you do, ladies and gentlemen? I'm Fahey Flynn with tonight's CBS News Special, brought to you as a public service by Blue Cross and Blue Shield. ![]() The Blues became one of the most trusted brands in America. All members paid the same amount no matter how old or sick, and no one was turned away. Boy Scouts handed out enrollment brochures and preachers urged their congregation to enroll.īlue Cross and Blue Shield plans formed as not-for-profits to give communities access to medical care and protect against personal financial ruin. SARA VARNEY: It may be hard to imagine now, but back in the 1930s, membership in a Blue Cross plan was practically a civic duty. Yet, when it started, Blue Cross had a charitable mission.įrom member station KQED, Sarah Varney looks back. Those in favor of the health care bill pointed to this increase and said that's what happens when regulators can't control the insurance industry. It does not store any personal data.Some political theater recently in Congress focused on Anthem Blue Cross of California, an insurance company raising its rates nearly 40 percent. The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. The cookie is used to store the user consent for the cookies in the category "Performance". This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other. The cookies is used to store the user consent for the cookies in the category "Necessary". ![]() The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". The cookie is used to store the user consent for the cookies in the category "Analytics". These cookies ensure basic functionalities and security features of the website, anonymously. Necessary cookies are absolutely essential for the website to function properly. ![]()
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