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!"
I take it you won’t be moderating the upcoming VSP townhall meetings?
I’d make myself available for that gig.
Yikes, crazy to see how convoluted it can all get when people don’t realize how the flow of money works.
AL I am totally agreed with you now! “VSP is not good for the private doctor” Last week, we went to VSP meeting & supposed to give advices for VSP for changes. I suggested that VSP provide their members with cards, so they can get their benefit information and information to reach their in-network provider. However, it was quickly denied because VSP cannot print 27000 provider in back of the card. (No insurance company prints the list of the provider; how about just a 1800 number) At the time, I realized that VSP didn’t want the patient to use their benefits, so they can keep the preimum. Yika…so sly! You have more power to reach out. I also did a calculation, VSP claimed that they have 56 million members and 27000 provider; therefore, each office should get about 2000 assumed only half use eyeglasses or contact, each office should still have average of 1000 VSP members but I believed that not many optometrist practice have 1000 VSP member per year. So doctors, please don’t turn your private pay patient into VSP patient. VSP ended up take your profit away from your office.
Now days, patients use credit card 95% of time to pay their bills, which means that optometrists are paying 3-6% of credit card fee for the insurance company because when insurance company do charge back, they don’t take off the credit card fees. AL, please advise on this hidden financial burden. Thank you!
So you feel that printing an insurance card for a member will change the world? Really? In a market that is continually going paperless and cardless? How many of those VSP Covered lives take advantage of direct deposit vs a live check? How many of either get a hard copy pay stub vs being driven to ADP or another HR Site to print their own? Do you really think it makes sense to print 54M cards that sit in wallets when nearly 500K people per month hit VSP?s web site to get information? Really? Wow?I didn?t realize this was the 1990?s still.
In terms of your belief that they don?t want them to use their benefits?.so does my nationwide fitness club not want me to use my membership? Last me and millions of others joined, we printed our own. How about my hotel programs? I don?t think any of them send cars any more? You just provide a number you can store in your smartphone. Even my grocery store is pushing the Keyring App for iPhones and Androids. Another Wow on why you would go down such a negative path.
Now in terms of members per practice, is your very simplified math take into account the markets? Does everyone live in a market that is saturated with VSP Clients? Really? How about Vermont? Ask me how many VSP members we have.
In terms of profits, you state VSP is taking away profit? Another REALLY? Did they force you to sign on their panel? Are their your patients first or the employees of VSP?s clients first? Hmmm?.last I checked, I?m a panel provider?.key being I provide services to VSP?s members?the members of their clients. Chicken or Egg my friend.
In terms of Credit Card Processing fees. Really interesting business sense you propose. So the last time you made a claim on your car insurance or your homeowners policy or your medical plan, do you think those managed care companies incurred the costs based on how the policy holder paid? Is it really VSP?s responsibility to pay the costs you as a provider incur for doing business with a client based on how the client decides to pay you? REALLY? WOW! What business courses promote that understanding to running any business?
I agreed that many of us are going paperless. However, do you know that 48% of US population still don’t own computer? 70% of my insurance patients do not know what vision insurances they have or either understand their benefits. Cards may not change the outcome, but it is a way to brand any business, and communication tool. Health insurance company is doing a great job promote its brand yet not so much in vision insurance.
True, credit card fees are part of cost of business. We helped insurance companies collect their charge backs at 100% and we only recieved 95 to 97%. I am not sure egg or chicken first; in this case, it may be both. It is my own fault when patients ask for suggestions on what vision insurance to purchase, and I always told them: VSP. You are right again, I do hava a choice. I made the business decision to take insurance to keep the chair fill. AL, thanks for providing great inputs.
If your patients don’t know what insurances they have nor understand their benefits, that’s their own personal responsibility and that of their benefits mgr and HR Dept., not the Managed Care Companies role. it’s no different than their direct deposit and their having to pull an electronic pay stub off ADP’s site. Again, that’s their individual responsibility and that of their HR Dept. to convey an understanding of the services third party companies are offering and being used by their employer. VSP hardly has a problem marketing their brand to the marketplace. They are the largest provider out there and again, HR Depts. are the ones presenting the options to their employees.
Your view on managed care is one view, but again, the service fee you forgo isn’t just to pay the managed care companies costs, the moment you signed onto the panel it became your agreed upon portion of discount that funds the program for those with the benefits aka the employees. The costs are covered by you the provider, the employee who shares in their own medical coverage costs and that of the employer. There’s no chicken/egg confusion here. The employer and VSP conducted business first, the employee selected VSP as their managed care plan and you elected to be a provider and agreed to the fees. The choice was and still is yours.