The effect of mandating complementary and alternative medicine services on insurance benefits in Washington State.

OBJECTIVES

Washington was the first state to require insurance companies to cover all categories of licensed providers. The purpose of this paper was to examine the effect of Washington's law on coverage decisions of major health plans.

DESIGN

The study uses literature and document review as well as key informant interviews.

SETTINGS/LOCATION: The study focuses on legislation and other legal activity in the state of Washington. The key informant interviews are focused on the decisions of three major health plans.

RESULTS

Although the law had a major effect on complementary and alternative medicine (CAM) coverage in Washington, the impact on the use of CAM services and expenditures has been bounded by changing market forces.

CONCLUSIONS

CAM providers face scientific tests of measurable efficacy and market tests of consumer value. In this economic environment, CAM stakeholders will have to work hard to maintain their political gains.