A nonprofit, tax-exempt health service prepayment organization providing coverage for health care and related services. The individual plans should be distinguished from their national association, the Blue Cross Association. Historically, the plans were largely the creation of the hospital industry, and designed to provide hospitals with a stable source of revenues, although formal association between the Blue Cross and American Hospital Associations ended in 1972. A Blue Cross plan must be a nonprofit community service organization with a governing body with a membership including a majority of public representatives. Most plans are regulated by State insurance commissioners under special enabling legislation. Plans are exempt from Federal income taxes, and, in most States, from State taxes (both property and premium). Unlike most private insurance companies, the plans usually provide service rather than indemnity benefits, and often pay hospitals on the basis of reasonable costs rather than charges. There are 70 plans in the United States.