News
Complementary Health Care is No Longer an "Alternative"
By George DeVries, President and CEO, American Specialty Health, Incorporated
HIU—Health Insurance Underwriter (June, 2003) -- Complementary health care is booming. What was once considered "alternative" has rapidly gained acceptance by millions of Americans. Today, services such as acupuncture, massage therapy, vitamins and minerals, chiropractic, and dietetic counseling have evolved into a $40 billion industry.
A number of factors have fueled the demand for complementary health care. From recent cover stories in Time and Newsweek to television talk shows and countless online resources, consumers have easy access to a wealth of information. Information-savvy individuals want to take greater control over their health and explore less invasive treatments. Progressive employers recognize this shift in thinking and are responding with benefit packages that address the rise in consumer demand.
David Eisenberg, MD, of Harvard Medical School has found the following common trends in key studies published in the New England Journal of Medicine in 1993 and Journal of the American Medical Association in 1998:
- Americans spend an average of over $100 per person, out-of-pocket, for complementary health each year.
- Consumers make almost twice the visits to complementary health care providers every year than to primary care physicians.
- Four in 10 Americans use some form of complementary health care every year.
In a 2000 survey of Fortune 200 companies by PricewaterhouseCoopers, more than 76 percent of the respondents said that they offer some form of complementary health care. The most popular covered benefit is chiropractic, followed by acupuncture. Not surprisingly, employers cited employee demand as the primary reason for offering these services. In addition, 63 percent of the benefits managers surveyed believe that complementary health care is cost-effective.
Complementary Benefit Plans Today
Opportunities abound for employers who are interested in offering complementary health care benefits. Many medical plans offer these benefits as a supplemental benefit rider in a manner similar to dental and vision coverage. In some states, employers may also purchase these benefits directly from the complementary health care company if their health plan does not offer such programs.
So how does this process work? As an illustrative example, a benefit plan could be structured as follows:
- Employers select a chiropractic, acupuncture, or combined chiropractic/acupucture direct-access benefit.
- Different benefit plans and premium costs are available depending upon copayment level ($10-$20 per visit) and annual benefit limit (20-50 visits per year).
- After an initial examination, all covered services are preauthorized through a peer-review process by licensed chiropractors or acupuncturists.
Employers are encouraged to look for complementary health care organizations that have an established credentialing process in place to ensure the quality of their contracted providers and programs.
The American Accreditation HealthCare Commission/URAC is a non-profit organization that accredits health plans, networks, and utilization management programs. URAC accreditation is considered a "seal of approval," indicating that a health plan has met national benchmarks and quality standards. As complementary health care becomes more and more integrated into overall health care programs, it