January 8, 2003 FOR IMMEDIATE RELEASE TO CHIROPRACTIC MEDIA: WAL-MART WELCOMES ACA'S HELP IN UNDERSTANDING THE VALUE OF CHIROPRACTIC ARLINGTON, VA -- The American Chiropractic Association (ACA) and Wal-Mart Stores Inc. have forged a new working relationship after a meeting between the two on December 12, 2002 to discuss the retail giant's decision to drop chiropractic services from its employee benefits in 2003. In conjunction with the ACA, Wal-Mart has indicated a willingness to look at new data regarding the cost- effectiveness of chiropractic care in offsetting more catastrophic events in patient care. The ACA was represented at the meeting by ACA President Dr. Daryl Wills, ACA Chairman Dr. James Edwards, ACA Executive Committee Member Dr. George McClelland and ACA Vice President Patricia Jackson. Wal-Mart representatives at the meeting included the Senior Vice President for Benefits and Claims and the Vice President for Benefits. Dr. Ted Morter III, a local doctor of chiropractic whom Wal-Mart officials know and respect also attended the meeting. ACA President Dr. Daryl Wills, who attended the meeting, described Wal-Mart officials as "willing to explore cost-effective strategies" and "data driven" in their decision-making. "They want to develop a long-term relationship with us," he added. "I think that's a positive thing." During the two-hour meeting, ACA learned that Wal-Mart wants to make certain that it can cover the costs of "catastrophic illness" for its employees, rather than support services that are not as acute, ongoing, and may create a dependence on providers. Wal-Mart also told ACA officials that its data shows that chiropractic care increases costs. In response, ACA officers presented Wal-Mart with detailed research that documents that chiropractic can actually reduce costs by deterring the need for drugs and more acute-care settings. ACA also suggested that a program be developed to help prevent the "dependence on providers" that Wal-Mart is concerned about. "We want Wal-Mart employees to have a choice in their health care, and we believe that allowing employees to choose chiropractic will benefit not only their health, but also their productivity," explained Dr. Wills. The chiropractic benefit that Wal-Mart is cutting in 2003 impacts approximately 85% of associates who are enrolled in the employee PPO plan. The remaining 15% of associates with HMO coverage and those with Workers Compensation claims have chiropractic benefits intact. Although only 15% of Wal-Mart employees choose to enroll in an HMO, over a third of Wal-Mart employees have access to an HMO. Wal-Mart's benefit team suggested offering chiropractic to its employees through an affinity program, but ACA stressed that taking chiropractic out of the core benefits is not an acceptable solution for patients or doctors. "While numerous research studies have shown chiropractic care to be appropriate, cost-effective and less invasive than a number of traditional medical interventions, losing chiropractic as a core benefit will be a deterrent for employee utilization," said ACA Chairman Dr. James Edwards. "ACA will work with Wal-Mart to ensure paid health care options for employees who choose non- surgical and drug-free care." ACA first contacted Wal-Mart about its benefits more than a year ago. In response to increasing member concerns, Dr. Wills sent a letter on Oct. 14, 2002 expressing concern to Wal-Mart president H. Lee Scott. (The letter is visible on the ACA Web site at .) The association has since learned that the decision to cut chiropractic, along with other policy changes, was most likely finalized in mid-2002 . The company's benefit design team is now working on its 2004 plan and welcomes ACA's input. ACA feels it will service all doctors of chiropractic and the patients they serve by helping Wal-Mart understand chiropractic value and the proper role it plays in the reduction of acute and catastrophic healthcare expenses.