2 HMOS WILL OFFER ALTERNATIVE MEDICINE; SERVICES REQUIRE STATE APPROVAL.

Byline: Ben Sullivan Daily News Staff Writer

Two California managed care companies announced Tuesday they will begin offering alternative medicine services to HMO enrollees in what analysts say is a trend being led by consumer demand.

Health Net, a subsidiary of Woodland Hills-based Foundation Health Systems, and Blue Shield of California, based in San Francisco, separately announced they will offer members alternative medicine packages that include services ranging from acupuncture to massage therapy to stress management. Both companies require approval from the California Department of Corporations before they can begin marketing the services.

Health Net said beginning in January it will offer members access to a network of licensed acupuncturists as a so-called ``rider,'' or add-on policy to its standard HMO benefits. The acupuncturists may also perform acupressure and massage therapy as needed, the company said.

Health Net already provides chiropractic services to about 600,000 enrollees nationally, according to company spokeswoman Catherine Lockwood. She said she did not know how much the new policy would add to a member's premium.

Blue Shield, meanwhile, will begin offering enrollees access to acupuncturists, massage therapists and chiropractors, and will give members discounts to fitness clubs. The services will be added to all Blue Shield health plans at no additional cost, the company reported.

Edward Keaney, a research analyst at Volpe Brown Whelan investment house in San Francisco, said the new services are entirely consumer-driven. ``Simply put, there's a lot of individuals interested in alternative medicine and there are companies willing to pay extra to include these benefits,'' Keaney said.

Keaney said Health Net's rider policy is the more common model, but that as demand continues to grow, alternative medicine may become a standard option on policies of most health plans, much as eye care is now.