What was the basis for the establishment of Blue Cross?

The establishment of Blue Cross was fundamentally based on a collective approach to healthcare financing, where members of a community, particularly a group of teachers, would pay a monthly fee to cover hospital costs. This model aimed to provide financial protection against the high expenses associated with hospital care, thereby making healthcare more accessible. It marked a significant shift towards organized healthcare financing, allowing individuals to share the burden of unpredictable health expenses, which was a novel idea at the time.

This model emphasized solidarity and community support, as individuals pooled their resources to ensure that everyone could receive necessary medical care without the risk of financial ruin. The success of this program eventually led to the expansion of similar plans across various sectors and populations, paving the way for the broader development of health insurance in the United States.