Blue Cross - Definition and Overview

Blue Cross is a name used by an association of health insurance plans throughout the United States, not to be confused with The Blue Cross which is an animal charity in the UK. It was developed in 1929, by Justin Ford Kimball, at Baylor University in Dallas, Texas. The first plan guaranteed teachers 21 days of hospital care for $6 a year. The plan was extended to other employee groups in Dallas, and then nationally. The American Hospital Association (AHA) adopted the Blue Cross symbol in 1939 as the emblem for plans meeting certain standards. In 1960 the AHA commission was superseded by the Blue Cross Association. Affiliation with the AHA was severed in 1972. In 1982, Blue Cross merged with the National Association of Blue Shield Plans to create the Blue Cross and Blue Shield Association.

Most states have their own member organizations. Some of these state plans, such as Wellpoint and Anthem have merged the plans of multiple states to achieve economies of scale.