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Historical Highlights — 1960s
1962
Master Medical coverage is introduced to provide additional payment guarantees for hospital and medical bills if subscribers suffer catastrophic or long-term illnesses.
1964
The Blue Cross board of directors completes a yearlong process to shift majority control from hospital and physician representatives. Customer subscribers now hold 52 percent of the seats.
1966
The U.S. Department of Health, Education and Welfare selects Blue Shield to administer Medicare Part B (covering physician services) and Blue Cross to administer Medicare Part A (covering hospital care) in Michigan.
The companies develop "Medicare Complementary Coverage" to pay Medicare copays and deductibles for beneficiaries.
Blue Cross and Blue Shield are selected to administer Medicaid, the federal-state health insurance plan for the indigent. It later becomes the State of Michigan's responsibility.
1968
To eliminate the need for constant upward adjustment of income ceilings, Blue Shield introduces a reimbursement system called Michigan Variable Fee (MVF). Under MVF, there is no income ceiling and no fee schedule. Blue Shield pays physician charges that are "customary and reasonable" within the prevailing range of fees charged by doctors of the same qualifications in the same geographic area. In return, the participating physician accepts Blue Shield's reimbursement as full payment for services to members.
