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History Of Health Insurance Pt5
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Part 5:
AHA designed Blue Cross as a way to reduce price competition between hospitals. Blue Cross also benefited from special state legislation allowing them to act as a non-profit organization. The reason for this was Blue Cross was viewed as an organization to better society since they often provide health care for people with low income. Despite the success of Blue Cross, physicians were much slower in accepting and providing pre-paid care. Physicians were scared that a third party system would lower their incomes. However, in the 1930s, Physicians faced two situations that forced them to develop their own pre-paid plans.
1.) Due to the fact that Blue Cross was becoming increasingly popular, some physicians feared that their autonomy was in jeopardy.
2.) People who wanted compulsory standardized health plans were looking to emerging legislation. This was even scarier to Physicians than Blue Cross.
It became clear to Physicians that they would be far better off if they developed their own health plan.
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