What was the American Medical Association's initial response to Blue Cross hospital insurance plans?

The American Medical Association (AMA) initially expressed significant concern regarding Blue Cross hospital insurance plans, labeling them as economically unsound and unethical. This response stemmed from the AMA's apprehension that such insurance models would disrupt the established doctor-patient relationship and lead to potential overutilization of medical services. The organization believed that reliance on third-party insurance could diminish the quality of care as financial barriers to service were removed for patients. Furthermore, the AMA was cautious about the implications of these plans on the independence and professionalism of medical practice.

The prevailing sentiment at the time was rooted in a protectiveness over traditional healthcare delivery methods and fears of commodifying medical care, which were believed to compromise ethical standards in the physician-patient dynamic. This stance was reflective of broader tensions during that era regarding the role of insurance in healthcare and the resistance to changing the structure of how medical services were delivered and financed.