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KAISER PERMANENTE LAUNCHES NEW COMPLEMENTARY AND ALTERNATIVE HEALTHCARE PACKAGE FOR ALL MID-ATLANTIC MEMBERS

New program will provide information, direct access, and discounts on chiropractic, acupuncture, massage therapy

Mid-Atlantic (October 12, 1999)-- Kaiser Permanente of the Mid-Atlantic States today announced it will expand complementary and alternative health care options for its 540,000 members beginning January 1, 2000.

Through a new arrangement between Kaiser Permanente and American Specialty Heath Networks, all local Kaiser Permanente members will have access, on their own, to a ASHN-credentialed network of chiropractors, acupuncturists, and massage therapists throughout the area. Those providers have agreed to accept a 25% reduction in fees for Kaiser Permanente members. Additionally, members will have access to ASHN’s national network of fitness clubs, information about complementary care through the ASHN web site, and significant discounts for over 1,200 health and wellness products through the organization’s “healthyroads.com” internet site.

“Increasingly, complementary care is one more option many people use to stay healthy,” said James C. Novell, President of the Kaiser Foundation Health Plan of the Mid-Atlantic States, Inc. “Today, millions of people turn to complementary forms of care to relieve stress and pain and improve wellness. Our members do as well. That’s why we’re offering this service. Members will have access to providers who have passed the ASHN-credentialing process and also enjoy a discount on the cost of those services.”

“Complementary and alternative healthcare is an important component of most consumers’ personal healthcare system,” said George DeVries, President and CEO of American Specialty Health Plans. “ASHN is committed to delivering high-quality, reliable provider networks. And, our Internet resources, ‘healthyroads.com,’ provide access to high-quality information and products. We are pleased to partner with Kaiser Permanente of the Mid-Atlantic States on such a broad and progressive program.”

Complementary health care is a term that includes a growing number of different “non-allopathic” approaches to health care. Options may include chiropractic, acupuncture, massage therapy, herbal therapy, vitamin therapy, and other self-care options like spa treatments.

The use of complementary and alternative medicine in the U.S. has grown exponentially in recent years. In a recent study by Stanford University, 69% of survey respondents said they had used such therapies in the past year, up from 34% in a separate 1990 study. The study also found that average annual out-of-pocket expenses for these services ranged from $270 for acupuncture to $111 for herbal medicines.

The services announced today are not covered benefits and are separate from those included in Kaiser Permanente’s prepaid health plans. Kaiser Permanente members can use any of the selected provider at any time, on their own, without referral from a physician. Those who use the program will pay the alternative care provider directly for services and receive special discounted rates.

Also, the program announced today is in addition to Kaiser Permanente’s current, optional coverage “rider” that employers can purchase to include complementary and alternative medicine coverage for their employees, when the employee is referred by a primary care physician. Federal employees have the option of similar service coverage. For these members, the program announced today will enhance access to quality services beyond the covered limit and also offer significant discounts for services beyond the limit.

"At Kaiser Permanente, we work constantly to provide our members with more choices for improving their quality of life," said Novell. "Today's announcement will benefit the growing number of our members who use complementary and alternative therapies."

Kaiser Permanente is America’s largest not-for-profit health maintenance organization, serving the health care needs of 8.6 million members in 17 states and the District of Columbia. Founded in 1945, it is a group-practice, integrated program, and as such organizes and provides or coordinates members' care, including preventive services such as prenatal care, immunizations, and screening diagnostics; hospital and medical services; and pharmacy services. Kaiser Permanente of the Mid-Atlantic States was founded in 1980 and now meets the health care needs of approximately 540,000 members in the District of Columbia, Maryland and Virginia through 23 state-of-the-art medical centers and a network of community physicians.

American Specialty Health Networks (ASHN) provides network access programs and managed care programs nationwide to health plans, insurance carriers, employer groups, and trust funds. Its affiliate, American Specialty Health Plans (ASHP), is the nation’s first and largest health plan for chiropractic and acupuncture services, operating in California. ASHN/ASHP provides comprehensive services including utilization management, quality management, member and provider services, claims and credentialing. ASHN/ASHP have received seven full two-year accreditations from the American Accreditation HealthCare Commission/URAC. Together, ASHP and ASHN cover over 13 million members nationwide. With over 400 employees, ASHN/ASHP are based in San Diego with regional offices in Honolulu, Atlanta, and Chicago.