Milford chronicle., 1954-12-24
Millions Protected
By Blue Cross


The Blue Cross idea Of prepay
ment of hospital costs has grown
from just an idea 25 years ago to-
day to a reality in a system pro-
tecting nearly 100000 Americans.
including about twO-thirds of the
total population Of Delaware.
This was pointed out tOdav bv
Robert G. Denzler, assistant manag-
ing director, of Group Hospital Ser
vice, who said the Delaware Blue
Cross agency is celebrating the ma
tiOnal anniversary of the Blue Cross
idea and looking forward to cele-
brating the twentieth anniversary
OF the local use Of that idea next
November.
It was just 25 years ago today
that Blue Cross made a quiet and
unassuming beginning in Dallas.
Texas. It was from that beginning
and testing that the Blue Cross idea
has grown into a national institu-
ton. Now, 80 per cent of the pop
ulatiOn Of the United States and
Canada belong to "a Blue Cross
Plans.
And hospital bills paid by the
plans for some 1000, 600 hospitaliz-
ed Blue Cross members last year
totalled more than $673,OOO,0OO.
1t was a university administrator
VINO started the Blue Cross idea
with a group Of Dallas public
school teachers 25 years ago Mr..
Denzler explained. It was known
as the Baylor Plan. Although there
had been earlier hospital insurance
and prepayment programs, this one
arrived at the proper time to serve
as catalyst for the development of
similar programs throughout the
nation, when the public felt a des-
perate need for some innovation in
costs Of hospital care.
That time arrived in the depres-
sion period which came soon after
the plan got started in Dallas in
1929.
Without advance protection from |
hospital and medical bills, thous- |
ands Of Americans found that ill /
ness brought a double demand on
income, since absence from work
meant no salary to pay for regular
expenses and hospital bills. One
estimate shows that at one point
Turing the depression more than +
20 per cent of hospitalized persons
'ould pay their bills only in part
u not at all.
Hospital administrators from
lcrOss the country heard during the
-931 American Hospital Association
convention in Toronto, Ontario.
lbout the successfully operating
prepayment plan in Dallas. The
PARTICULAR appeal Of the Baylor
hospital plan was its idea of pre-
laying for services rather than cash
n case of disqualification. Service
'enefits rather than cash benefits
Oday are the backbone of the Blue
ross idea, Mr.. DenZler continued.
The Baylor Plan was simply a
1ree-DaTty agreement to pay the
Ost of hospital care. Subscribers
aid a small monthly fee into a
ommOn fund, the Prepayment Plan,
rhich was used for the payment Of
Ospital bills The hospital prom
ied to provide a certain number Of
ays of special services" for a
Deeified payment from the common
Ind. The entire transaction was
on-proft in keeping with hospi- ]
Il tradition.
The American Hospital AssOcia- I
on watched the progress of plans !
milar to the Baylor Plan and f. /
ally placed it's national support ]
shind the growing number of pre-
7yment plans like the Dallas pro-
type. ]
The need to pay for hospital 1
)sts was felt and met. A national s
)dy brought to local groups a CO. {
leadership. And the Blue {
ross idea was marching on its way
ward changing the nations meth
Is Of meeting the costs of hospital Z
ire.
The Blue Cross story is that of no {
ne man. It's growth has been spon- ]
.neOus and unprecedented in pres
lt-day history. The Blue Cross 1
lea was accepted because the eco
Dmic climated demanded new
Iinkers and new ideas. But the
lue Cross idea was engineered by
en- Of vision and social RESPONSE
lity whose accomplishments in
le past 25 years have made hospi-
] care more available to those
no need 1t, Mr.. Denzler said.