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BCBSAL was founded in 1936 as the Hospital Service Corporation. In 1952, the company changed its name to Blue Cross-Blue Shield of Alabama. In 1970, the name was changed back to Blue Cross and Blue Shield of Alabama L. By that year, it had increased its enrollment to over 1 million people.
In 1982, Blue Shield merged with The Blue Cross Association to form the Blue Cross and Blue Shield Association (BCBS). [11] Prior to 1986, organizations administering BCBS were tax exempt under 501(c)(4) as social welfare plans. The Tax Reform Act of 1986 revoked the exemption, however, because the plans sold commercial-type insurance.
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