How are Blue Cross and Blue Shield different from traditional commercial insurance companies?

Question

Quizplus · Accepted Answer

Blue Cross and Blue Shield are different from traditional commercial insurance companies because the majority of benefits are on a service basis. The service basis provides coverage where the insurer (Blue Cross and Blue Shield) pay the provider directly. This means the insured does not have to be reimbursed. Blue Cross and Blue Shield also have contractual relationships with hospitals and doctors so the costs are contractually agreed upon for services provided.
Theory

How Are Blue Cross and Blue Shield Different from Traditional