Which organization is an example of nonprofit service organizations in health insurance?

• A. Aetna
• B. Cigna
• C. Blue Cross Blue Shield
• D. Kaiser Permanente

Answer: (C)

Nonprofit service organizations in health insurance are plans that exist to provide and coordinate health care services for members, reinvesting any surpluses back into improving member benefits and access rather than distributing profits to shareholders. Blue Cross Blue Shield fits this description well because it represents a federation of independent nonprofit plans that work together to offer coverage and administer services for members. The emphasis is on delivering care and managing benefits through nonprofit plans coordinated by the association.

In contrast, Aetna and Cigna are primarily stock insurers owned by shareholders and operate to earn profits. Kaiser Permanente is an integrated provider-insurer model that runs its own hospitals and medical groups; while nonprofit, its structure and operations differ from the classic nonprofit service-organization model represented by Blue Cross Blue Shield.