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South Dakota History

The Blue Cross Blue Shield Organization
Wellmark Blue Cross and Blue Shield of South Dakota

The Blue Cross Blue Shield Organization

The early days of Blue Cross and Blue Shield Plans marked the birth of prepaid health care coverage in America. Originally, Blue Cross Plans were formed to cover the cost of hospital care while Blue Shield Plans were established to cover physicians' services. Today, both brands represent the full spectrum of health care coverage. Here's how it all began:

Blue Cross Roots

1929 Justin Ford Kimball, an official at Baylor University in Dallas, introduces a plan to guarantee schoolteachers 21 days of hospital care for $6 a year. Other groups of employees in Dallas soon join the plan, and the idea quickly attracts nationwide attention. Thus the Blue Cross concept is born.

1939 the Blue Cross symbol is officially adopted as national emblem for such plans.

Blue Shield Roots

1900 The Blue Shield concept emerges from the lumber and mining camps of the Pacific Northwest at the turn of the century. Employers want to provide medical care for their workers, so they pay monthly fees to "medical service bureaus" composed of groups of physicians.

1939 These pioneer programs lead to the first Blue Shield Plan, which is established in California in 1939.

Blue Cross and Blue Shield Association Roots

1982 The Blue Cross and Blue Shield Association is formed as the result of a merger of the Blue Cross Association and National Association of Blue Shield Plans.

Today the Blue Cross and Blue Shield System consists of 47 member plans that are independent, locally operated companies under the coordination of the Blue Cross and Blue Shield Association.

Wellmark Blue Cross and Blue Shield of South Dakota

1948 Associated Hospital Services begins doing business in South Dakota and marketing activities as Blue Cross.

1956 South Dakota Medical Service begins doing business in South Dakota as South Dakota Blue Shield.

1973 Associated Hospital Service, Incorporated changes its name to Blue Cross of Western Iowa and South Dakota.

1986 Blue Cross and Blue Shield of South Dakota markets AWARE, the first managed care product in South Dakota.

1987 First electronic submission of claims to the Plan by South Dakota hospitals.

1989 Blue Cross of Western Iowa and South Dakota, Blue Cross of Iowa and Blue Shield of Iowa merge to form IASD Health Services.

1994 Blue Cross of South Dakota and South Dakota Blue Shield's joint service agreement expires, putting the Plans in competition with one another.

1996

A new joint services operating agreement is reached between Blue Cross of South Dakota and South Dakota Blue Shield.
Blue Cross of South Dakota and South Dakota Blue Shield merge, creating South Dakota Health Services Company d.b.a. "Blue Cross Blue Shield of South Dakota."
Blue Cross and Blue Shield of South Dakota first does business with third-party administrator (TPA) subsidiary Administrative Medical Services, Inc.

1997

The enterprise adopts the Wellmark brand, using the trade names Wellmark Blue Cross and Blue Shield of Iowa and Wellmark Blue Cross and Blue Shield of South Dakota.
After the consolidation of several operating systems, Wellmark Blue Cross and Blue Shield of South Dakota receives recognition from the Blue Cross and Blue Shield Association as "Most Improved Plan" in interplan services.

Today Wellmark's Strategic Priorities, under CEO John Forsyth and its board of directors, focus our company’s energies and resources on distinctive capabilities that provide unique value to our customers and stakeholders. It is our goal to achieve the full potential of our core business. Achievement of these priorities will position us to continue to provide unique value and to continue to grow in Iowa and South Dakota.

Copyright© 2008 Wellmark, Inc. All Rights Reserved.
Wellmark Blue Cross and Blue Shield is an Independent Licensee of the Blue Cross and Blue Shield Association doing business in Iowa and South Dakota. Blue Cross®, Blue Shield®, and the Cross® and Shield® symbols are registered marks of the Blue Cross and Blue Shield Association, an Association of Independent Blue Cross and Blue Shield Plans.