Is there an important difference between Blue Cross and Blue Shield and other health insurance companies?
Yes and No. Blue Cross and Blue Shield health insurance companies are a lot like other big health insurance companies, but they happen to be licensed by the Blue Cross and Blue Shield Association to use the Blue Cross and Blue Shield brand name. However, both Blue Cross Blue Shield of Illinois and Anthem (Indiana) Blue Cross and Blue Shield are financially powerful health insurers with the largest market share in their respective states. They both have great brand name recognition and make a lot of profit, which makes them a little more special than most other health insurers.
Blue Cross and Blue Shield health insurance companies are similar to other big health insurers such as UnitedHealthcare, Aetna and Humana, but they’re also licensed to use the widely-recognized Blue Cross and Blue Shield brand name. The Blue Cross and Blue Shield plans tend to be the dominant vendors in the states where they do business. For instance, Blue Cross Blue Shield of Illinois (BCBSIL) is the #1 health insurer in Illinois. Anthem Blue Cross and Blue Shield is the #1 health insurer in Indiana. The brand name helps, but BCBSIL and Anthem wouldn’t have achieved their enviable market positions if they weren’t delivering superior insurance products at competitive prices.
