Al Cleinman's Blog

You're Kidding, Right?

A reader, who happens to visit many optometrist's offices, sent me a copy of VSP's Promotional Literature for their individual plan.  This is the plan where VSP goes directly to consumers and convinces them that they can buy eye care and eyewear at a discount.  The premiums for this plan are, of course, paid directly to VSP.  Then, VSP shares these premiums with the provider in the form of paltry reimbursements.  VSP, of course, says that they're driving new patients to their providers and everyone wins.  The consumer gets a discount.  The provider gets a new patient.  And VSP gets a boatload of money.

Sounds like a logical plan.

But here's the amazing part.  This brochure was picked up in a provider's office.  Yep, right there in the waiting room.  This astute provider was telling his patients "Hey, you don't have to pay me what I usually charge, just join up with VSP and you can get a discount." 

There are two seriously big concerns with this.  First, VSP is no longer moving patients exclusively to private practice optometry...nope.  Today, they own their own retail operation within the Cisco Campus (not likely the one and only); they're sending your patients to COSTCO; and soon, logic says, they'll be sending more to COSTCO and others as VSP and the likes of COSTCO plot to develop a special plan designed exclusively for COSTCO members.

The other problem with this is that this particular provider has already secured the patient.  If they simply WOWed the patient, they wouldn't have to worry about the patient going elsewhere for service.  Why would you sell against yourself?

According to our research, the difference between gross charges and collected dollars has eroded by eleven percentage points over just the past five years.  That means that you have eleven percent fewer dollars to pay your staff; your overhead; yourself.  And it's not like you can make it up on volume; since VSP now demands additional discounts for second pair sales.

THROW OUT THOSE BROCHURES!  Fill the landfills.  It's time to cry "we're sick and tired and aren't going to take it anymore!"

Download VSP Vision Care Coverage - Individual Plan

Some Questions for VSP Regarding their Cisco Vision Center

The banter about VSP's opening of a vision center on the Cisco campus in San Jose has been significant.  Announced on this blog on May 11th, the topic is hot enough for VSP to feel compelled to respond with various PR efforts, including releases to the press and a national "town hall" tour.  These efforts are likely the work of an expensive PR firm retained by VSP for just such events.

In one recently released communication, VSP works hard to rationalize their action as a competitive response.  "If not us, then it would have been someone else," they say.  OK, I get that.  Competitive actions require competitive response.  I'm a firm believer in the law of the marketplace.  But had VSP done just two things...only two...they could have turned this sow's ear into a silk purse.  And the fact that VSP doesn't do these things generates other questions, for sure.  So I have two questions for VSP:

a) If this is so good for your providers, why not announce the action back last fall when you took it instead of hiding it and then reacting once it was discovered?  Why not transparency?

b) If this is so good for the providers, why not take the profits from the activity and return them to the VSP providers within a 20 mile radius of the Cisco Campus.  After all, this can't be a highly profitable activity, with only 1000 on-site claims.  Why not give the money back to your providers, VSP? 

My own opinion  of VSP's strategy is well documented in this blog.  Let's see if VSP has the cojones to respond.

VSP Goes Retail - Kiss Eyewear Goodbye?

 

It appears that VSP, through it's EyeFinity division, is now the owner of an optical dispensary inside of the Cisco Campus in San Jose, CA (competing directly with private practice optometrists).  As I've written in the past, the day when VSP "goes direct" with the sale of eyewear is here.  The document below describes a logical model for VSP to attempt to promulgate...the O.D. gets the exam (at ludicrous reimbursement rates) and VSP gets the eyewear. 

You'll find this interesting reading...and a crystal ball into your future.

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Vision Care—General

46. What vision care services are available at LifeConnections Health Center?

The vision care services include both optometry services and eyewear, including glasses, sunglasses and contact lenses.

Optometry services are provided onsite by an optometrist under contract with the North First Street Medical Group at the LifeConnections Health Center.

The LifeConnections Vision Center, an optical dispensary owned and operated by Eyefinity, Inc. (Eyefinity), offers you quality, stylish eyewear at discounted prices.

 

47. Where is the optometrist located?

The optometrist is located at the LifeConnections Health Center at:

Building Q, Second floor 3571 North First Street, Suite 200 San Jose, CA 95134 (Near the corner of First and Tasman)

 

48. Where is the Vision Center located?

The LifeConnections Vision Center is located within the LifeConnections Health Center at:

Building Q, Second floor 3571 North First Street, Suite 202 San Jose, CA 95134 (Near the corner of First and Tasman)

408 424-2229

 

49. Who is VSP^{® Vision Care?}

VSP® Vision Care has focused on eye health and its impact on the overall wellness of some 55 million members for more than 50 years. Cisco employees and their families have had access to VSP benefits for many years. As the largest not-for-profit vision care provider in the industry, VSP works with optometrists, including the one at the LifeConnections Health Center, to offer discounts on eyewear and eye exams to its plan members in rural and metropolitan areas throughout the United States — this includes Cisco employees and their dependents.

 

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50. Who is Eyefinity?

Eyefinity owns and operates the LifeConnections Vision Center. Eyefinity is the leading business management partner in the eyecare industry, specializing in web-based solutions that allow eyecare professionals to order products and materials.

LifeConnections Health Center Optometrist

 

51. What are the qualifications of the LifeConnections Health Center optometrist?

Vision care is provided onsite by a licensed optometrist under contract with the North First Street Medical Group at the LifeConnections Health Center. The optometrist is highly skilled, experienced, and licensed. She will take the time to get to know you and the health of your eyes.

 

52. Are all Cisco employees eligible to be seen by the health center optometrist?

All Cisco employees and their dependents eligible for benefits can use the health center optometrist. Cisco employees and their families covered under VSP will receive in-network benefits when they see an optometrist at the health center. If you’re not covered under VSP, you can be seen at the health center and pay directly for services.

 

53. What services does the optometrist offer?

The optometrist focuses on your eye health and visual acuity. You’ll receive an exam that is more than just a quick eye check—the exam focuses on your eyes and overall wellness. Our optometrist will look for vision problems within the scope of licensure and look for signs of serious health conditions, like glaucoma, diabetic eye disease, high blood pressure, and high cholesterol, too.

 

54. Is there an advantage to seeing the optometrist at LifeConnections Health Center?

Yes, there are many advantages. The health center optometrist is a proactive, collaborative member of the LifeConnections Health Center medical team. This integrated approach makes it easy for the physicians to refer to the optometrist for vision care and for the optometrist to refer patients directly to a primary care physician if a health care problem such as diabetes, high blood pressure, or high cholesterol is detected during a routine eye examination. Of course, another advantage is the time you save time by visiting an optometrist located on the San Jose campus.

 

55. Are same-day appointments available with the optometrist?

Yes, depending on availability. Call the LifeConnections Health Center at 408 424-2000 to find out.

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56. How much does it cost to visit the optometrist?

Employees and their dependents that are covered under the VSP plan will have their optometry claims processed by VSP. For eye exams, you are generally responsible for a $25.00 copay. Employees not covered under the VSP plan are responsible for the full payment, and can be reimbursed through their individual Health Care Flexible Spending Account or submit a claim with their vision care plan.

 

57. As a Kaiser member, can I see the optometrist?

Yes, you are welcome to see the optometrist at the LifeConnections Health Center, but you must pay the full cost for services, unless you are covered under VSP.

 

58. How often should I get an eye exam?

You and your doctor should determine the eye exam schedule that best meets your eyecare needs. However, as a rule, the recommended care is to have an eye exam every one to two years. Those with a family history of eye diseases, diabetic patients, and anyone whose general health is poor or who are taking medications that may have potential side effects on the eye may need to have their eyes examined more frequently.

 

59. Why should I have my eyes examined regularly?

Thorough eye exams are essential not just for detecting vision problems, but also as an important preventive measure for maintaining overall health and wellness. And your VSP coverage is designed to protect and enhance your eyesight. In fact, a thorough eye exam can detect a number of serious medical conditions, such as glaucoma, cataracts, and diabetes--even cancer. Caring for your eyes should always be a part of your regular healthcare routine.

 

60. When should my child have his or her first eye exam?

The American Optometric Association suggests that children should have their first regular eye exam at six months of age. Follow up exams should be done around age two to three.

 

61. How often should children’s eyes be examined after their initial eye exam?

As with adults, children's eyes should be examined every two years, or more often if there is an eye or vision problem, or a family history of eye disease. School children use their eyes more often than adults to read and perform other activities, so it's critical for them to have regular eye exams.

Also, it's important to remember that an eye screening typically offered at school only tests for distance. Screenings will not detect some vision problems. Your child can have problems with near vision, eye coordination, or focusing and still have 20/20

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distance vision. If left untreated, these problems can cause learning disabilities, headaches, and other visual discomforts.

 

62. Do I need a special eye exam as I get close to, or past, age 40?

You don't need a special eye exam over age 40, but it's critical that you have your regular eye exam at least every two years. As we get older, we are more susceptible to certain eye diseases such as cataracts, glaucoma, and macular degeneration. A regular eye exam enables your eye doctor to detect the first signs of disease and prescribe the appropriate treatments to prevent vision loss.

 

63. Are primary eyecare services provided onsite?

Your VSP Primary EyeCare benefit provides medical and urgent eyecare that goes beyond your regular VSP plan, including:

 

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64. Do you need a referral for primary eyecare?

You’ll never need a referral. And if the optometrist finds that you need to see a specialist, he/she will consult and coordinate with your primary care physician, or an ophthalmologist.

 

65. Can I get a prescription from the optometrist filled at the LifeConnections Pharmacy?

Like the other practitioners at LifeConnections Health Center, the optometrist has the ability to e-prescribe to the LifeConnections Pharmacy, to the extent allowed by state law.

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LifeConnections Vision Center

66. Are all Cisco employees eligible to get eyewear/services at the LifeConnections Vision Center?

All Cisco employees and their dependents eligible for benefits can use the Vision Center. Cisco employees and their families covered under VSP will receive in-network benefits. If you’re not covered under VSP, you will be fully responsible for the costs of all eyewear and services.

 

67. What are the qualifications of the LifeConnections Vision Center staff?

The LifeConnections Vision Center opticians are board-registered in fitting glasses and contacts. They’re trained in image consulting and can work with you to achieve the best vision as well as the right image and look to enhance your lifestyle.

 

68. Do I have to be seen by the health center optometrist to see an optician at the LifeConnections Vision Center?

No. You and your eligible dependents can purchase eyewear at the LifeConnections Vision Center without using the services of the health center optometrist. Simply bring your prescription to the LifeConnections Vision Center and the opticians will be happy to assist.

69. What services and products are offered at the LifeConnections Vision Center?

We offer visual solutions for all of life’s needs, including glasses and contact lenses, along with adjustments and repairs of existing eyewear.

We have an exceptional range of glasses, designed to fit every need. From practical to sporty, we carry popular brands such as Calvin Klein®, Sean John®, Nike®, Tommy Bahama®, Karl Lagerfeld®, Fendi®, Coach®, and many more.

We also offer the latest in high-def lens technology, which allows you to see things more clearly.

70. How much does it cost for eyewear and contact lenses?

 

For eyewear and contact lenses, the VSP plan offers Cisco employees and their dependents a generous allowance that may offset the entire cost of the eyewear purchased. Employees not covered under the VSP plan are required to pay for

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services directly, and then can submit a claim to be reimbursed through their individual Health Care Flexible Spending Account.

71. As a Kaiser member, can I get glasses or contact lenses at the LifeConnections Vision Center?

Yes, you are welcome to purchase glasses and contact lenses at the LifeConnections Vision Center, but you must pay the full cost for the products you purchase, unless you are covered under VSP.

72. What savings and discounts will I receive at the LifeConnections Vision Center?

If covered under the VSP plan, you’ll get lens and brand options every year, and frames every other year, with an allowance for contacts and the contact lens exam (fitting and evaluation).

You’ll also get extra discounts and savings on glasses, sunglasses, contacts, and laser vision correction. For more details on exact allowance and discounts, please visit ciscolifeconnections.com and click on the "Vision Care" tab.

73. What are the Vision Center office hours?

The LifeConnections Vision Center is open Monday through Friday from 9 a.m. to

6 p.m. and closed on Cisco holidays.

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Note: Although high-def lenses are not covered under the VSP benefit plan, you’ll receive an average of 35-40 percent savings on these lens options.

Exams to monitor cataracts

 

　

Tests to diagnose eye conditions, such as glaucoma and diabetic eye disease

Tests to diagnose sudden vision changes

Treatment for eye pain or conditions like pink eye

Study Supports VSP Increasing Reimbursements to Providers

The following was recently announced by VSP.  In addition to promoting the importance, and value, of a comprehensive eye health exam, one would hope that VSP would use this information to support an increase in reimbursements for the very providers who have delivered these incredible results.  After all, it's not VSP that delivers the service, it's VSP Providers. 

Would this report have any less an impact were it to say $4 billion in savings vs. $4.5 billion?  Some simple math indicates that $.5 billion represents about a $20 increase in exam reimbursements across the board.  VSP, and all vision plans, it's time for this price increase so that your providers can continue to deliver the quality of care that is the basis for your claims. 

I encourage VSP to provide a copy of the report to all Providers, so they may use excerpts in their own marketing materials.

______________________________ 

New VSP Vision Care Study Finds Employers Offering Vision Benefits Save $4.5 B on Health Care Expenditures

RANCHO CORDOVA, Calif. ––VSP Vision Care released the findings of a new study showing $4.5 billion in savings for its clients—for profits, not-for-profits and government organizations—through the early detection of chronic diseases via eyecare and vision exams covered by VSP vision insurance.

The study, conducted by Human Capital Management Services Group (HCMS), a national human capital consulting firm, found that for every $1 invested in VSP exam services—which include comprehensive, annual eye exams—during an employee’s first year with the benefit, employers can expect an average two-year total return of $1.27 in long-term health care savings. These savings are a result of avoided medical costs and increased employee productivity, the statement said.

"With health care costs spiraling out of control, these new findings showing $4.5 billion in savings clearly demonstrate the importance of stand alone eyecare benefits," said Rob Lynch, CEO of VSP Global. “Preventive eye exams support overall wellness and are much more than a means to receive prescription eyewear.”

The HCMS study further revealed that VSP clients experienced 7 percent less absenteeism, 4 percent less employee turnover and savings on insurance and workers’ compensation costs. Early detection of chronic diseases like diabetes and hypertension also increased the likelihood employees would be proactive with their health care and more likely to see a medical doctor to receive follow-up care.

“Individuals who have a VSP vision plan are three times more likely to get an annual eye exam than a routine preventive physical,” said Susan Egbert, director of eye health management, VSP Vision Care. “This means VSP providers are more likely to detect the first signs of common chronic diseases like diabetes and hypertension.”

The company’s statement noted, “VSP Vision Care is the only vision plan to facilitate nationwide, HIPAA-compliant data collection and exchange through the VSP Eye Health Management Program resulting in these cost savings and health benefits.” HCMS matched medical condition data for over 200,000 members covered by VSP Vision Care, spanning two years to medical and pharmacy data obtained from the clients’ medical and drug carriers. HCMS compared chronic patients who were first identified by VSP Vision Care against those who entered the health care system via traditional means.

The study included six large commercial clients with a total of 212,000 members. With a research reference database of more than 2.2 million employees and their families who are actively enrolled in a health plan, HCMS maintains comprehensive data catalogue containing medical and prescription costs, absenteeism, disability, workers’ compensation, and productivity costs. The study identified more than 9,000 VSP members who were first identified with early signs of diabetes, hypertension and high cholesterol by a VSP doctor.

The 800# Gorilla Strikes Again!

I share this with my readers simply as a reporter.  What follows is apparantly a letter from the American Optometric Society to their members, followed by press release on the same topic.

I make no comment...what follows speaks for itself.

________________________________________

Last October, in order to bring accurate information to our members about VSP’s new relationship with Costco, we sat down with VSP’s Chairman of the Board, Tim Jankowski, O.D., and its President Rob Lynch, for an interview. After the interview VSP tried to tell us what we could and could not do with the interview transcript. We rejected VSP’s demands. VSP threatened to sue the AOS if we did not do what they wanted. Again, we rejected VSP’s efforts to control the AOS. The AOS considers it critical that we are independent and do not allow outside organizations to influence our decisions. It distinguishes us from many other organizations.

With that in mind, the AOS told VSP that we had an obligation to our members and would not be told by VSP what we could and could not do. We published the transcript and allowed our members to read it. VSP responded with more threats from their lawyers. But the AOS again refused to permit VSP to tell us what we may and may not do. So, this past week VSP sued the AOS, two of its Board members (Pam Miller and Rich Driscoll) and its attorney, Craig Steinberg claiming that the VSP interview was recorded without permission, and that the transcript was wrongfully published. The Press Release regarding this sets forth the facts as we believe them to be. Please read it. A copy of the Press Release is included at the bottom of this news bulletin.

This past year VSP has initiated a program allowing some groups to obtain VSP covered eye care through Costco. VSP then began selling frames and glasses on-line, in direct competition with their network providers. Most recently VSP initiated a program where, if you sell enough Altair and Marchon frames you receive preferential listing when a VSP patient searches for VSP providers in their area. If you don’t sell enough VSP frames you are listed after the other doctors in your area. And now VSP has sued the AOS for providing our members with the most accurate information we could obtain about VSP – information provided to us from VSP itself.

If, like many others, you are tiring of VSP being the 1000 lb gorilla and want the AOS to stand up against VSP’s bullying tactics, we ask that you click here now and donate $100 or more to the AOS legal fund. We are confident that the VSP lawsuit has no merit and that this lawsuit is nothing more than VSP’s way to show everyone what will happen if you don’t do what they tell you – classic strong-arm bully tactics.

 We hope you’ll let us know with your donations to the AOS legal fund that you want the AOS to fight VSP and show them that we will not be intimidated

 VSP SUES THE AMERICAN OPTOMETRIC SOCIETY FOR ALLOWING AOS

MEMBERS TO READ TRANSCRIPT OF VSP INTERVIEW

AOS Says Lawsuit is Nothing More than VSP Bully Tactics

LOS ANGELES, CA, February 14, 2011 - Vision Service Plan (VSP) has filed a lawsuit against the American Optometric Society (AOS), several members of its Board of Directors, and its General Counsel, alleging that VSP was illegally and unknowingly taped during an interview on October 8 and that the AOS improperly published the transcript of that interview. The AOS adamantly denies the claims made by VSP and says it will vigorously defend itself against what it views as nothing more than VSP bullying tactics.

Says AOS President, Pamela Miller, OD, JD, of the lawsuit, “VSP's actions are a travesty and an embarrassment to what until recently was a respected pro-optometry organization. Not only was VSP told ahead of time that the meeting would be recorded and transcribed, not only was it openly recorded, and not only was VSP given a month to review and supplement the transcript before it was published, but the very purpose of the interview was so the AOS could disseminate VSP's explanation for its new relationship with Costco. And now VSP is unhappy that we did. The AOS believes the lawsuit is motivated by the AOS' refusal to be controlled by VSP. We have been honest to our word, and we will vigorously defend this baseless and frivolous lawsuit.”

The facts are largely undisputed. On September 5, 2010, Dr. Miller, wrote to VSP Chairman Tim Jankowski, O.D., inviting VSP to be interviewed by the AOS during Vision Expo to allow VSP to explain its newly announced relationship with Costco. In the letter and follow-up email Dr. Miller wrote, “We would record and then publish a transcript of that discussion so that our members have an opportunity to hear answers to their questions, directly from VSP.” In response, Dr. Jankowski replied that he was 99% sure he could do [the interview] on October 8. On September 13 Dr. Jankowski confirmed that he would be there along with VSP President Rob Lynch.

The interview took place in a Las Vegas meeting room, with several AOS Board members and AOS attorney, Craig Steinberg, OD, JD, present. Several other AOS board members participated via Skype. A recorder was placed on the table in front of Dr. Jankowski and Mr. Lynch during the nearly three hour interview. At no time did VSP indicate, or have they since indicated, that any part of the discussion was confidential.

On Saturday, December 17, the AOS provided a copy of the transcript to Dr. Jankowski and Mr. Lynch for their review. In response, VSP President Rob Lynch wrote, “We would ask that this not be posted until both Tim [Jankowski] and I give you written approval and have had a chance to review it. I will not be able to look at this before Monday afternoon.”

On December 19, VSP attorney Eric Johannessen, in an email to AOS attorney Craig Steinberg, wrote that, “Neither Rob [Lynch] nor Tim [Jankowski] understood that their conversation was being audio recorded until the end of the meeting.” Mr. Johannessen stated, however, that “... to be clear, we are not attempting to block the publication and dissemination of complete and accurate information to the AOS members. In fact, it is precisely VSP’s support of such efforts that led us to agree to meet in Las Vegas in the first place.” Mr. Johannessen continued, “We do not intend to rewrite history or inhibit publication. But, Rob [Lynch] and Tim [Jankowski] do intend to continue to withhold their respective personal consents to the audio recording until and unless we are provided a fair and reasonable opportunity to review the completeness and accuracy of the record.” Accordingly, the AOS did not make the transcript available to its members until January 13, 2011. At no time before or since has VSP offered any changes or supplement to the transcript.

Nonetheless, VSP filed a lawsuit claiming that the interview was recorded illegally because VSP did not know it would be recorded, and that VSP is suffering unspecified damages due to the transcript being made available to AOS members. VSP seeks damages, penalties, and an injunction against further publication of the transcript.

According to AOS attorney Craig Steinberg, “There is no merit to this lawsuit. Given the recent actions of VSP, which, among other things, is now selling frames on-line and is punishing VSP network doctors that do not sell a high enough volume of VSP owned frame lines, this latest misguided action by VSP appears to me to be nothing more than part of a larger VSP strategy to try and show it can still control the profession. Because the AOS resisted VSP’s effort to control it, VSP sued. I look forward to the Courts having the opportunity to examine the facts, and I am confident the AOS will be fully exonerated of any wrongdoing.”

Is There a Fox in your Henhouse?

I first predicted this eventuality in June, 2009 (see post of June 19, 2009).  VSP announces below that they are reaching into your patient files and driving your patients to the internet...of course, all in the best interest of the private practice ECP.  When will VSP Providers wake up and smell the coffee?   

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RANCHO CORDOVA, Calif.—Following its announcement on Dec. 20 about establishing an internal task force to examine the opportunities in the online space, VSP Global said it will launch a live beta test of eyeconic.com, www.eyeconic.com, an online optical retail store, on Feb. 18. To be launched with 8,600 small California VSP Vision Care clients, the test will enable 473,000 VSP members to use eyeconic.com to purchase contact lenses, prescription eyewear and sunwear.

The company said, “Eyeconic.com is designed to enable independent eyecare providers to compete with online optical retailers.”

Stated David Plevyak, vice president of business development and leader of VSP’s online initiative, "We've heard and understand the concerns doctors have regarding online sales, especially the fear of reducing patient visits. Recognizing the online optical space is growing rapidly, we’re confident that eyeconic.com is the right online partner for independent providers. We're making them an integral part of the online solution by referring patients to independent eyecare providers, generating revenue for providers and by offering a virtual extension of their dispensary."


After the beta test is complete, which a company spokesperson told VMail would be about four weeks, “Eyeconic.com will consider implementing any enhancements and launching the site nationally later this year” to all 55 million VSP Vision Care members. Both members and consumers will have the ability to order contact lenses and browse, select, virtually try-on, and purchase sunwear and prescription eyewear using the Marchon and Altair portfolio of products. Additional frame brands may be available in the future, although VSP said a timetable for these was not determined.

Plevyak added, “Eyeconic.com will be the only player in the online optical marketplace that will offer the ability to use a VSP Vision Care benefit to purchase a mix of brands and prescription lenses including proprietary coatings and options. We believe there’s a growing market for this type of offering and look forward to providing VSP Vision Care members with a world-class online browsing and buying experience that will connect them back to their local independent eyecare provider. Also, purchases made on eyeconic.com will generate revenue for independent providers.”

VSP said that eyeconic.com will refer consumers shopping online back to providers’ offices. The spokesperson told VMail, “When a patient shops online with a prescription from a VSP doctor or indicates a VSP doctor as their doctor when checking out, eyeconic.com will refer the patient to their VSP doctor on the order confirmation and invoice. Eyeconic.com fills the order and handles all the details. Eyeconic.com ships products directly to customers; on the site, customers who browse can view offices that carry frame brands.” In addition, “If a patient doesn't have a VSP doctor or has a prescription from an out-of-network doctor, eyeconic.com will refer them to a nearby VSP doctor.”

The company announcement also said eyeconic.com is designed “to give providers a new channel for second pair, sunglass and contact lens sales.” Asked to clarify, the spokesperson told VMail, “Providers can use eyeconic.com to reach patients who shop online, where they shop: online. They can include eyeconic.com in second pair/sunwear email promotions and direct patients walking away from their practice without filling their prescription to eyeconic.com, where they can browse and buy optical products and, most importantly, connect back to their prescribing VSP doctor.”

VSP Global cited several issues behind its development of the eyeconic.com test, among these: a change in consumer purchasing behaviors, a growing amount of direct revenue being lost by independent ECPs to online purchases and a growing need for doctors to generate a steady stream of non-office-based revenue.”

VSP network doctors will find additional details at VSPOnline on eyefinity.com.

VSP Lobbies for its Life

VSP recently announced the appointment of what appears to be a chief lobbyist dedicated to convincing Congress that VSP and other stand-alone vision plans are good for the country.  In my opinion, VSP is good for only one thing...VSP.  The logical place for Vision Care Services is within our medical insurance system; not as a stand-alone benefit provided by commercial firms whose only motivation is profit.  The American Consumer doesn't need "insurance" for eyewear any more than we need insurance for the oil changes for our car.  The American Consumer is NOT benefiting because the costs associated with eroding margins on materials are simply being shifted to medical services or worse, are actually driving down the quality of vision care. 

It's time for the likes of VSP to pack up their bags.  They squeeze Providers to provide their product...it's that simple.

I find it fascinating that VSP has the cajones to make statements like:

"VSP has a long and proven track record of promoting healthy outcomes for both patients and the companies they work for"

What about VSP's Provider's?  VSP was founded for private practice optometry.  Our studies indicate that, thanks to the likes of VSP, Providers are operating on ever-slimmer margins.  Indeed, the difference between Gross Charges and Collected Revenue has declined by double digit percentages in just the past five years.  With these eroding margins, Providers are being squeezed for the capital necessary to invest in ever-evolving technology, the best employees, updated facilities and increased service levels.  The result...the patient loses.

VSP was founded to serve its Providers and help Providers serve patients.  Now, Providers are simply a pawn in their game...to make as much money as they can. 

The squeeze continues.  Many Providers are gasping for economic air.  When are they going to revolt? 

_________________

VSP Vision Care Appoints Cecil Swamidoss to Director of Federal Policy

RANCHO CORDOVA, Calif. and WASHINGTON—VSP Vision Care announced that it has appointed Cecil Swamidoss as director of federal policy. Based in Washington, D.C., Swamidoss will help develop and implement VSP's Federal lobbying efforts to ensure the company's 55 million members will retain access to stand-alone vision care services under the new national healthcare reform legislation.

Swamidoss has more than 10 years of Federal legislative experience having worked in Senators Herb Kohl (D-WI), John Breaux (D-LA), and Chuck Grassley's (R-IA) offices as Senior Counsel and/or assistant dealing with national health care policy issues, Swamidoss has some of the most extensive health care regulatory and legislative experience in the nation including developing policies around the marketing and sales of Medicare Advantage plans, as well as the development of the Physician Sunshine Act, the Patient Safety and Abuse Prevention Act and Medicare Modernization Act, VSP’s announcement said. Most recently, Swamidoss served as vice president of Dutko Worldwide.

"Cecil brings a unique understanding of how to work with both Republicans and Democrats in government," said Thomas Fessler, Chief Legal Officer and General Counsel of VSP Global. "Eyecare is an important component in health care reform. Cecil will focus on supporting good policy that is in the best interest of the nation's overall eye health and wellness needs."

Over the past few years, VSP has increased its focus and attention on Federal health care policy initiatives, having worked closely with Alston & Bird, a D.C. lobbying firm. VSP is bringing Swamidoss on to drive its Washington, D.C.-focused efforts.

"VSP has a long and proven track record of promoting healthy outcomes for both patients and the companies they work for. This is an important story to tell, and one that legislators in Washington, D.C. need to hear," added Swamidoss. "While the healthcare reform package has been passed and signed into law, there are still opportunities to protect the one-in-six Americans VSP covers with stand-alone vision care benefits. It's in the country's best interests that not-for-profit health insurers like VSP are included in the qualified exchanges."

Swamidoss received a Master of Public Health (M.P.H.) from George Washington University, and a law degree (J.D.) from Case Western Reserve University School of Law. He received his Bachelor's degree from University of Michigan.

Actions Speak Louder than Words!

VSP continues it's arrogance, this time with the announcement that it has launched a “pilot” program with Costco Wholesale.  Yep...of all retailers...COSTCO!  Under this brilliant plan, employees of a number of employer groups (and current VSP clients) who are Costco warehouse club members can now use their VSP vision benefits at the vision centers in Costco’s stores.

What a great way to build a brand!

Perhaps, in all it's wisdom (after all, VSP knows all about private practice optometry...they have 27,000 optometrist "employees") VSP is simply setting up a comparative whereby the "brand" of the private practice optometrist is compared with that of Costco? 

VSP appears to be claiming that failing to have a retail option for it's members is causing competitive challenges.  I believe that this is simply rationalization for VSP to continue it's "globalization" plan and push for more, more, more.  After all, VSP's employees need higher salaries, new cars, more gourmet meals and, of course, to maintain their 15% of salary 401k contribution.  Also, VSP needs dough to expand around the world...because that will, of course, help it's providers who gave VSP life 50 years ago.  What is VSP's mission? 

Why can't VSP just be honest?  Why can't VSP leadership simply come out and tell everyone who they really are:

"We are driven by money and we are going to continue to do whatever we can to grow our business for the benefit of our employees; private practice optometrists be damned!" 

Sorry, VSP...this is just one more action that says it all.

Let's Make a Deal!

VSP Vision Care and Johnson & Johnson Vision Care’s Vistakon division recently announced that they are partnering to offer VSP “members” (your patients) what the two firms call “an enhanced additional rebate program,” which kicked off Oct. 1.

According to the announcement, members who purchase an annual supply of Acuvue CLs from one of VSP’s 27,000 network providers will receive an additional $25 rebate in addition to Vistakon’s current national rebate program. “This program will assist us in our continuing efforts to provide VSP members with access to high quality eyecare at more competitive prices,” said Gary Brooks, VSP Vision Care’s president.

Vistakon says it’s supporting the program with a marketing campaign “focusing on educating VSP members about the program and the value available from their eyecare professional,” the announcement said. 

 

Let’s think more seriously about what consumers’ value.  

There’s an old marketing saying, “in the absence of anything else, price prevails.” Is this not just one more example of lazy marketing that’s destroying our industry? Is not this program right up there with all the BOGO programs that have taught consumers that our industry is overpriced and they should expect 50%+ discounting? Does this not continue the branding message that our industry is at about the level of the proverbial used car dealer; if you don’t like the deal, wait a minute?  Why is it that, when studies show that price is the number six most important element in eyecare delivery (behind such items as doctor communication, knowledge of staff, etc.), all that our industry seems to be able to deliver is marketing based on price?  

I think Gary Brooks and his VSP team should focus their attention on delivering VSP providers with an increase in their reimbursements.  VSP “members” and the employers who fund their benefits already receive an outrageously amazing deal…pricing for eyecare and eyewear services at operating profit margins (based on our research) fully 10% points less than those of only five years ago. Indeed, in a recent study, we identified that our clients in California are being reimbursed by VSP at an average of  62% of their U&C exam fees.  Worse, their last reimbursement increase from VSP came, on average, three years ago (and amounted to pennies).  I wonder if VSP employees received their last raise three years ago.

How can VSP providers continue to invest in providing the very best care at these levels of reimbursement?

What is particularly offensive about this strategy is that VSP providers have no direct say in this matter.  VSP is touting that they have provided this as a “service” to their members (VSP Providers’ patients).  What about the 27,000 optometrists, many of whom, thanks to VSP's dominance in their practice, are effectively employed by VSP?  VSP employees receive annual raises and vote VSP in the top 100 of “The Best Places to Work.”  What about VSP’s other “employees?”  VSP providers are effectively commandeered to accept this rebate program and continue the slippery slope of brand destruction based on price, price, price. Vistakon and VSP, of course, will likely say that rebate programs cost the provider nothing. Certainly, rebates are better than direct discounts.  But it's time to start communicating at a level other than price. 

I ask whether these and other similar programs end up costing providers their most valued asset...their brand? 

Assuming that each VSP provider has five patients claim the rebate, that has the investment in this program at $3.375 million.  Add the cost of administration, and you're easily at the $4 million mark.

What might Vistakon do with $4 million that would better support the desired brand of the independent optometrist as well as that of Vistakon?  I encourage Vistakon and other industry marketers to more deeply consider the implications of price oriented marketing.  You can do better.

For an interesting and enlightening education on the impact of discounting, I encourage you to pick up Cheap: The High Cost of Discount Culture by Ellen Ruppel Shell, professor of science journalism at Boston University. 

VSP Gets a BIG Tax Bill...Providers Continue to Pay

It appears that VSP has lost it's tax appeal and the U.S. Government (taxpayers) have won.  Sorry Providers...no reimbursement increases any time soon.  Not only does VSP have to pay off their $730 million Marchon acquisition, but now they've got a mmmmillion dollar tax bill.  Look for continued reimbursement squeeze.

Opinion and Order