Word: shielding
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Dates: during 1950-1959
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Among these 61 million are 34 million who have additional protection against part of the costs of surgery while in hospial. Two-thirds of these policies are written by insurance companies, most of the remainder by voluntary plans in Blue Cross's associate organization, Blue Shield, which has grown phenomenally in four years. Among the 34 million, about 13 million have additional coverage for some physicians' bills, usually only while in hospital. Some 3½ million of these, in turn, are insured against most types of medical expense (excluding dentistry, optometry and chronic illnesses like tuberculosis) from...
...Insurance Works. Here is a specific example of how the combined Blue Cross and Blue Shield plans work. Last October, the wife of a Bronx freight handler, whose income is $2,400 a year, came down with acute appendicitis. The illness marked the first time that the family had had occasion to use its hospital insurance (held since 1943), now combined with a Blue Shield surgical plan, for premiums totaling $64.32 a year. The wife had an appendectomy and, because of complications, stayed in the hospital 24 days. For the first 21 days, Blue Cross allowed $6 a day; beyond...
...Blue Shield paid the surgeon its fixed allowance of $100 for the appendectomy. The surgeon had contracted, when he signed up with Blue Shield, to give "service benefits" at its fixed rates to families with incomes of less than $2,500 a year. If the freight handler had earned more than $2,500, the surgeon could have charged more than $100, and the freight handler would have had to pay everything over...
...months after their mother's illness, both the freight handler's sons had their tonsils and adenoids out. Blue Cross and Blue Shield between them paid $141.36 for the two operations, and father did not have to lay out a penny...
Turnover. The people who benefit most by Blue Cross and Blue Shield are steady wage-earners not too highly paid to be eligible for service benefits, and working if? a plant where group membership is possible. Both Blue Cross and Blue Shield subscribers are concentrated in the cities and metropolitan areas of industrial states. Rhode Island tops the Blue Cross list with 72% of the state's people enrolled, Delaware is next with 55%, and also tops the Blue Shield rolls with 50%. Eight states (Rhode Island among them) have no Blue Shield plan...