Which statement is true about the Blues?

Which statement is true about the Blues?

• A. They pay providers directly
• B. They cover only hospital care
• C. They provide benefits on a service basis
• D. They require medical underwriting

Answer: (C)

Blues are service benefit plans. Benefits are provided for specific medical services as they’re rendered, with the plan paying contracted providers for those services rather than handing the insured a cash indemnity. They work through a provider network and negotiated rates, so coverage is tied to services received rather than a fixed cash payout. This is what “provide benefits on a service basis” means.

Blues are service benefit plans. Benefits are provided for specific medical services as they’re rendered, with the plan paying contracted providers for those services rather than handing the insured a cash indemnity. They work through a provider network and negotiated rates, so coverage is tied to services received rather than a fixed cash payout. This is what “provide benefits on a service basis” means.