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Blue Cross Blue Sheild


            
            
             The first prepayment plan was started in 1929, by Justin Ford Kimball. He had no experience in health care but he did have knowledge for financial management. He developed a sick benefit fund so the teachers would have something to fall back on if they had the bad luck of catching the dreaded influenza. They contributed $1.00 a month and if they became sick, they were entitled to compensation of $5.00 a day to cover work loss.
             The officials at Baylor needed him to help finances at University Hospital in the medical education department. He had experience as an insurance lawyer, school superintendent and university professor. In the 1920's hospital cost had risen and the medical education and advanced technology in the hospital setting needed an upgrading. In the early 20's the hospital setting had doubled its bed capacity but all that started to change toward the end of the 20's when occupancy rates had went down as low as 1/3 during an economic depression. Hospitals were beginning to see large losses and current bills were getting behind. Kimball and an associate named Bryce Twitty were discussing what could be done to help people afford hospital stays. Twitty had said "Why couldn't we do for sick people what lumber camps and railroads had done for their employees" (he was referring to company doctors or contract medicine that the rail, mining and lumber companies did to keep their workers healthy.).
             This led him to gather the information he had from the earlier plan and with this he started a sick benefit fund for the city's school teachers. This caught on quick when the stock market crash hit in 1929. Later this was changed when the Baylor Hospital said that if the majority of the group would take the plan and send in 50 cents a month it would count for a prepayment to the hospital when they needed it. This went directly to the hospital with no middle man in charge. The hospital stated what benefits were included and it was not in dollars but in days of service from the hospital.


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