COMPLEMENTARY ALTERNATIVE MEDICINE TO BE OFFERED BY KAISER PERMANENTE

HONOLULU (May 4,1999)-- Beginning July 1, all Kaiser Permanente Hawaii members will be able to receive services from a select list of chiropractors, acupuncturists, and massage therapists, and purchase herbal or vitamin therapies, at discounted rates.

Additionally, employer groups offering Kaiser Permanente will be able to purchase supplemental benefits (or "riders") so their employees with Kaiser's health plan can use these same alternative care providers for a nominal co-payment.

Kaiser Permanente has signed a letter of intent with American Specialty Health Networks of San Diego, Calif., to manage this program. ASHN administers comprehensive, complementary health managed care programs and networks throughout the United States.

"Millions of Americans are using complementary alternative forms of care and therapies." said Carol Taketa, Kaiser Permanente's product development director. "Our members have asked us to provide them with reliable sources for these therapies.

"Our hope is that this program will give our members guidance in selecting alternative care providers who have passed a standardized credentialing process, and give them a discount on the cost of these services."

"ASHN has established itself as a leader in complementary health care, with a proven commitment to quality standards, said George DeVries, president and chief executive officer of ASHN. "We are pleased to administer these programs, which provide Kaiser's members with a variety of complementary health care choices and high quality networks and services."

The Discount Program
Kaiser Permanente members will be able to self-refer to chiropractors, acupuncturists, and massage therapists on Oahu, Maui, Hawaii, and Kauai. ASHN is processing credentials for about 100 of these providers who will offer discounts to Kaiser members who present their membership cards at the time of service. Members may use any of the selected providers at any time. They will call the providers directly to make appointments and will pay them at the determined discounted rates. Kaiser members will not need to submit claims forms. The herbal/vitamin therapies will be available at certain Kaiser Permanente pharmacies; by calling a toll-free number, or via the Internet. The exact discounts and details still are being discussed.

The "Rider" Program
Employers who offer Kaiser Permanente's health plan to their employees will be able to purchase individual riders for chiropractic, acupuncture, and therapeutic massage, or a combination of their choosing. The cost of these riders has not yet been set, but the co-payment for their employees with Kaiser coverage will likely be $10. Kaiser Permanente has offered a chiropractic rider to employers since 1997.

ASHN and its affiliate American Specialty Health Plans is the nation's largest managed care organization for complementary health care, serving more than 10 million members. In Honolulu, ASHN is working in conjunction with PractiCare Hawaii, Inc., to provide a network of more than 100 chiropractors, acupuncturists, and massage therapists for this Kaiser program. PractiCare is a locally owned and operated complementary health care IPA (independent practice association). Formerly known as American Specialty Networks, ASHN's chiropractic and acupuncture networks, as well as its utilization management standards are accredited by the American Accreditation HealthCare Commission/URAC.

Kaiser Permanente Hawaii is the state's largest and most experienced health maintenance organization. Its 300 physicians and 3,500 employees serve 211,000 members statewide. Kaiser operates 17 outpatient clinics on Oahu, Maui, and Hawaii, and contracts with the Kauai Medical Group to provide care for its Garden Island members. Additionally, Kaiser operates a 217-bed acute-care hospital in Moanalua and a 55-bed skilled care facility.

It is the state' s only HMO to twice receive full three-year accreditation from the National Committee on Quality Assurance, and was ranked by Newsweek magazine as the nation's seventh best HMO.