Why Alternative Health Coverage Should Matter To Employers

Employees typically turn to alternative health care when traditional medical care has not worked or the traditional treatment is not considered acceptable because of cost or potential side effects.

Studies show that employee migration to "high touch," low-cost therapies such as chiropractic or massage therapy can significantly reduce an employer's overall medical costs by eliminating or reducing high-tech, surgical and pharmacological treatments.

For example, a study published in the October 2004 issue of the Archives of Internal Medicine concluded that employees with chiropractic health plan coverage, as compared to those without, incurred a 41% reduction in hospitalizations for back pain, a 32% reduction in back surgeries, a 37% reduction in the use of costly CT and MRI scans for back problems, and a 23% reduction in the use of X-rays. Overall, the cost per episode of treating back pain was 28% less for employees with chiropractic health plan coverage than for those without chiropractic coverage.

5. High Rates of Employee Stress and Absenteeism

In our 24/7 work culture, stress is taking its toll. In fact, workplace stress costs employers more than $300 billion a year in medical treatment and absenteeism.

Fortunately, complementary health treatments such as massage therapy and Yoga have been shown to trigger physical, emotional and mental changes that can significantly decrease stress, lower absenteeism and enhance productivity.

The Touch Research Institute at the University of Miami has discovered that a basic 15-minute chair massage provided twice weekly results in decreased job stress and a significant increase in productivity.

In addition, anecdotal evidence from large employers about the positive effects of massage has facilitated employer acceptance of this service as a therapy. Today 18% of large employers offer massage therapy to reduce stress and absenteeism, according to the Society of Human Resource Management, Alexandria, Va.

6. Attracting the Best Job Candidates

In an era of health benefit take-aways, complex health savings account plans, and premium cost-shifting to employees, CAM programs can give employers a simple, innovative way to sweeten their benefits while differentiating themselves from competitors.

7. Tight Budgets

Employers can add CAM benefits to any health plan, just as they would add on dental or vision care, for the low cost of about 1% to 2% of their total health care premium.

Flexible arrangements allow employers to purchase products either on a contributory or non-contributory basis, or even as an employee pay-all supplement.

While the employee pay-all approach may not be as meaningful to employees, it still provides the opportunity to reduce medical utilization by facilitating employee access to lower-cost services.

Employees with health savings accounts can pay for these lower-cost services with pre-tax cash, thus stretching their health care dollars while enhancing feelings of empowerment.

Employers can purchase complementary health plans from traditional insurers in some states, but where such coverage is not available or is limited in its scope, another option is to purchase the coverage directly from a specialty benefits company. Such companies offer the broadest range of coverages and often provide additional health services, such as wellness plans, weight management and smoking cessation.