• Home
  • Blog
  • Massage Therapy Should Be Covered by Insurance
  • Blog

Massage Therapy Should Be Covered by Insurance

posted by Custom Craftworks on August 21, 2017

Massage therapy isn't just good for the body, it's good for overall wellness, according to new research. When patients have access to medically prescribed massage therapy that's covered by Medicaid, patients not only benefited from better health and outcomes, but saw lower health care costs, about $64 less per treatment. 

calculator-385506_1920.jpgExperts say the study should be a launching point for a healthy dialogue between patients and providers about the benefits of massage therapy. In addition, both private insurers and Medicare/Medicaid could see lower costs (currently only 46 states cover massage therapy) if they chose to include massage therapy among their benefits, and massage therapy as a field could grow rapidly as a result. 

Currently a number of major medical centers across the U.S. offer massage therapy as part of their integrative medicine programs.

Research conducted by John Dunham & Associates (JDA), a leader in the field of tax and regulatory economic impact studies, found that integrating massage therapy into medical care can reduce health care costs. The American Massage Therapy Association (AMTA) has released the research to reinforce the relationship between massage therapy and costs of care.

Why Use Massage Therapy?

Patient Savings

The JDA analysis examined 2014 data from the federal Medicaid and Medicare systems to see if patient care costs can be reduced by providing better access and coverage for medically prescribed massage therapy. Based on an econometric analysis that takes into account a number of demographic and economic variables, the weighted average cost for 19 specific types of treatments was about $64 lower per treatment in states where massage is covered as part of Medicaid.

"The research findings indicate that integrating massage therapy into ongoing care has a positive outcome for patients and in many cases lowers health care costs," said Jeff Smoot, AMTA President. "The information in this study can help support a national dialogue on the detailed cost effectiveness of massage therapy and provide a starting point for conversations among patients and their health care providers."

Significant Cumulative Savings

When the total number of treatments is analyzed cumulatively across approximately 66 million outpatient services, the research indicates that private insurers could save as much as $4.55 billion in costs annually, if they were to cover massage therapy nationally. These potential savings could reach as high as $439 million in Texas, and $426 million in California. Government third-party payers could also see substantial savings – as much as $1.39 billion if all 46 states that do not cover massage under their Medicaid programs were to do so.

massage-389727_1920.jpgFor individuals, the benefits of massage therapy accrue when taken as part of a comprehensive treatment system, and the data indicate that visiting a massage therapist in place of additional hours at the hospital or doctor's office, or substituting massage in place of some other treatment, is where the savings truly emerge.

Medical costs have been rising faster than inflation, in part because the number of health practitioners is limited. According to John Dunham, Managing Partner of John Dunham & Associates, "While a model of this type cannot predict causality, economic theory suggests that the savings are the result of the benefits of increasing the supply of practitioners to meet the demands of the health care marketplace. By covering massage therapy as part of a system of integrative care, the potential pool of practitioners would grow, adding as many as 300,000 massage therapists and approximately 16,760 massage therapy firms."

Lower Coverage Costs

In integrated care models, health professionals and institutions who provide services to patients work together to share information and coordinate care. The JDA research report shows that the practice of allowing massage therapy as insured coverage is correlated, for most treatments examined, with lower coverage costs when controlling for demographic and economic factors. The channels through which increased coverage may result in reduced costs are based on a straightforward assessment of supply and demand in the medical treatment market.

undefined-322512-edited.jpgA growing number of medical centers throughout the U.S. now fully integrate massage therapy into patient care, including the Mayo Clinic, MD Anderson Cancer Center, Duke Integrative Medicine program, Cleveland Clinic and the University of Pittsburgh Cancer Institute. 

Economic Impact of Massage Therapy

The economic impact of massage therapy is significant in the U.S. It is estimated to be an $11.7 billion industry in 2014.1 U.S. consumers continue to seek out professional massage to support their health and wellness goals. According to the annual 2014 American Massage Therapy Association Consumer Survey, between July 2013 and July 2014, roughly 32.6 million adult Americans (15 percent) had a professional massage at least once.2

Why Use Massage Therapy?


This blog was curated from a news release on May 20, 2015 from the American Massage Therapy Association and originally appeared here.

Sources

1.     IBIS World Industry Report OD6028 – Massage Services, January 2014 
2.     2014 AMTA Consumer Survey through Opinion Research Corporation International

Tags: massage therapy, insurance

About Author

Custom Craftworks

Originally founded in 1986, Custom Craftworks supports the vital work of professional manual therapists and educators in the massage therapy and holistic health fields by designing, building and sourcing the best-quality massage tables, chairs, equipment and accessories available. In 2009, the company was acquired by Pivotal Health Solutions based in Watertown, South Dakota.