In the November 6th issue of the Wall Street Journal, an article deep in the bowels of the newspaper caught my attention. “Humana Brings Doctors In-House” revealed Humana’s move into providing not health insurance…but direct patient care. Indeed, Humana is expected to bring over 2600 physicians under its umbrella. This hybrid model is clearly on the minds of insurers, who’s job is to arbitrage the economic opportunity between what insurance payors are willing to pay and what healthcare providers are willing to accept as reimbursement. What better way to insure that costs are controlled than to employ their largest cost; the physicians that provide the care to their insureds.
Forewarned is forearmed!
Hi Al,Thanks for your research on VSP. Yours is the only site where you can get news and conmtmeary on the company’s quiet business moves. It’s sad to see how most ECP’s are completely blinded and/or scared to death as to the real objective of VSP’s slow but steady policies to protect independent ODs. Unlike Mr. No Thanks , I have experienced first-hand the detrimental effects these profit grabbing initiatives/policies have had on net income. I worked for an independent optometrist for more than 8 years, and her VSP exam reimbursements were never increased (not even indexed to inflation!). During the same time, CL pricing and CL exam fees for VSP patients were reduced as well as our dispensing fees for frames and lenses. Unfortunately, I believe that VSP as used the independent optometrist and has now become so big that it can dictate terms and on top of that sell software, services and hardware to a captive audience . ODs obsession with independence and competition with each other (as oppossed to collaboration) in the end works against them and in favor of VSP, Eyemed et al, since they have also bought their biggest association (AOA). I belive nowadays only the AOS is fighting the good fight. Keep up the good work.
@ Divya You’re right, your fees were and never will likely be increased. Careful what you wish for too as if VSP does, EyeMed will surely use that against them in the marketplace and suck those clients into their plan thus paying you even less than what you’re complaining about here. Don’t believe me, talk to the clients themselves and ask yourself instead what you’re old boss was doing to increase revenues and profits otherwise.
@ No Thanks
So we should should be pro-VSP because at least they are better than EyeMed?
If I am in a restaurant, I have many choices. I do not order the fish with the reasoning that “at least it is better than liver and onions!” I order what I like
Why should ODs continue to support ANY vision plan that hurts the bottom line?
@ Don
regarding your note on supporting VSP over EyeMed. Your choice on managed care overall should be based on a number of things. However my point is if VSP were to raise your exam fees, EyeMed would surely use that to their advantage. VSP is instead offering you ways to increase profits through materials whereby EyeMed isn’t. They are getting as creative as they can vs EyeMed who is doing the same only funneling people to their retail stores not your chairs.
Order whatever you like, the choice has always been yours. In terms of managed care overall, again, that too is a choice you can make. Support them or not, but I see many of my brethren OD’s gladly accept patient appointments and cash managed care plan checks then turn around and complain and gripe. Pretty clear they are talking out of both sides instead of making a choice and living by it.