Blue Cross and Blue Shield Plans

Blue Cross and Blue Shield Plans have historical roots dating back to the first half of the 20th century. Initially
formed as not-for-profit organizations, in 1994 BC/BS plans were permitted to covert to for-profit status. Some
BC/BS plans pursued this conversion from not-for-profit to for-profit status. Others remained organized as notfor-profit organizations.
Based on a review of the text reading, Studio videos, and independent research, answer the following
questions:

1. What was the main concern of municipal and state authorities with the conversion of BC/BS plans from notfor-profit to for-profit status? How did these authorities respond to these concerns?
2. What are the fundamental legal, corporate, and organizational differences between not-for-profit and forprofit BC/BS plans in terms of ownership, governance, and utilization of profit?
3. What have been the consequences of BC/BS conversion from not-for-profit to for-profit status in terms of
   market share, patient access, quality of care, and cost of care?

Sample Solution