America’s health insurance system didn’t start as a profit machine—it began as a community fix during the Great Depression. In 1929, a small prepaid hospital plan for Texas teachers became the nonprofit model behind Blue Cross and Blue Shield, prioritizing access, affordability, and public service. For decades, nonprofit insurers dominated, keeping costs relatively contained and medical spending focused on patient care. That balance began to shift after World War II and accelerated with Medicare, Medicaid, and later policy changes that opened the door to for-profit insurers. By the 1990s, even the iconic Blues had largely abandoned their nonprofit roots, transforming insurance into a shareholder-driven industry. The result has been rising administrative costs, higher premiums, and a system increasingly shaped by profit incentives rather than patient needs.

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https://www.undergroundusa.com/p/how-for-profit-health-insurance-turned