ACN-HP ENROLLMENT INCREASES BY 57 PERCENT

San Diego, CA (February 25, 1997)-- The American Chiropractic Network Health Plan (ACN-HP) announced today that its member enrollment increased by 57 percent from Jan. 1, 1996 to Jan. 1, 1997.

The chiropractic HMO’s enrollment grew from 1,027,363 on Jan. 1, 1996 to 1,598,547 on Jan. 1, 1997.

“Our enrollment growth during 1996 resulted primarily from new members in our client health plans, including three health plans we added during 1996,” said George DeVries, ACN-HP president and chief executive officer.

ACN-HP provides a supplemental chiropractic benefit to 13 health plans in California, including eight of the state’s 10 largest HMOs. During 1996, ACN-HP began to offer its benefit through Blue Shield HMO, Health Plan of the Redwoods and Kaiser Permanente. ACN-HP also contracts with Aetna Health Plans, Blue Shield HMO, CaliforniaCare Health Plans, CIGNA Health Plan of San Diego, Health Net, HMO California, PacifiCare of California, Prudential Health Care Plan and Sharp Health Plan. This month, United HealthCare of California began to offer the ACN-HP benefit.

ACN-HP provides a direct-access chiropractic managed care benefit. Members may access its statewide network of 1,300 chiropractors without a referral from their primary care physician.

Employer groups that do not contract with one of ACN-HP’s client health plans may also purchase the ACN-HP benefit as a stand-alone or “carve-out” benefit.

The American Chiropractic Network Health Plan is California’s first and largest chiropractic HMO. It is the fourth largest specialty HMO in the state (out of approximately 60 specialty plans) and is the largest specialty HMO, in terms of covered members, headquartered in San Diego.

ACN-HP’s sister company, American Chiropractic Network Southwest (ACN-SW) offers chiropractic networks and managed care systems on an “administrative services only” basis for self-funded employers and insurance carriers. ACN-SW covers over 800,000 additional members throughout California.