National HMO Study Promises Future for Alternative Health Care; The Landmark Report II Offers Look At What Health Plans are Doing, Plan to Do.

SACRAMENTO, Calif.--(BW HealthWire)--March 10, 1999--A nationwide study released today shows a growing responsiveness among HMOs to cover complementary alternative medicine (CAM). Two-thirds of HMOs (67 percent) offer at least one form of alternative care. The most common offerings are chiropractic (65 percent) and acupuncture (31 percent). Of those HMOs that offer alternative care, four out of ten (38 percent) cite that demand among members and employers compelled them to offer CAM benefits. An equal proportion (38 percent) indicate mandates or legal requirements as the single most important reason for their decision.

The Landmark Report II on HMOs and Alternative Care gives an inside look at industry activity. HMOs may have the greatest potential of influencing the role of alternative care in the United States. Recognizing this, Sacramento-based Landmark Healthcare sponsored this research to substantiate a more comprehensive understanding of HMOs' motivations and projections. The study, conducted by National Market Measures, Inc. from November 1998 through January 1999, also provides an indication of existing programs and market response to widely reported consumer demand.

Among HMOs that offer alternative care, on average, almost one-half of members (47 percent) are covered. Additionally, one-half of HMOs contract with outside vendors to provide alternative care services. Among all HMOs, regardless of current offerings, 85 percent think the relationship between traditional and alternative medical care will grow closer. In fact, 47 percent perceive the relationship as "complementary."

Managed care industry information about CAM has been limited and rarely quantified. "These findings represent a previously lacking HMO perspective on a trend we are all challenged to address," said Marla J. Orth, Landmark CEO. "For Landmark, we see a clear indication of the value of complementary alternative medicine in our health system. More specifically, we're confident that our programs are in sync with an increasingly progressive mindset among HMO executives," she said.

Other interesting findings include the following:

-- HMOs maintain varied beliefs regarding the impact of alternative

care on the bottom line. One-half share a belief that such

benefits either "net evenly" (30 percent) or produce savings (21

percent). The remaining half (49 percent) believe alternative

care adds to total costs.

-- Acupuncture (97 percent), herbal therapy (96 percent),

acupressure (89 percent), and massage therapy (88 percent) are

most often associated with alternative care.

-- Chiropractic is often associated with alternative care (57

percent), but many HMOs (43 percent) do not consider it

alternative. This further validates the reputed mainstreaming of

this treatment option.

-- HMOs are most likely to add acupuncture (36 percent), acupressure

(31 percent), massage therapy (30 percent) and vitamin therapy

(27 percent) over the next two to three years.

-- All HMOs believe consumer demand for alternative care will

continue and nearly three-fourths of them (74 percent) think it

will be moderate or strong.

For this study, 449 HMOs nationwide qualified. Telephone interviews were conducted with 114 senior HMO executives representing 25 percent of the entire universe. In a random sample of 114, the maximum statistical error is +7.9 percent in a two-way split of the data at the 95 percent confidence level (after applying the finite population correction factor).

Serving more than 4 million members nationwide, Landmark is a progressive alternative health care company. It has a 13-year history in complementary alternative medicine programs via managed care and other innovative, transitional benefit designs. Committed to sharing insightful information with the broader health care industry, The Landmark Report II is the newest study in a succession of both qualitative and quantitative efforts and facilitates a fuller understanding of market dynamics regarding alternative care. For more information or to access Landmark's on-line media kit, including downloadable graphs, visit the company's web site at www.landmarkhealthcare.com.