VSP buying who?

[cocoisland58]

Sure you have, "Where are those ones that are free with my insurance?"

(Translation: Please show me the Genesis line of eyewear manufactured by Altair Eyewear.)

Well they'e never said "Altair" and I don't have any to show them anyway. 99% of the time they come in and ask me what their coverage is on a frame. I look at the fax, say "they cover $$$.00 towards any frame and you get 20% off the difference out of pocket.

["X"]

I heard last week, from a very reliable source, that it is indeed Marchon.
At $700,000,000 (that's a heck of a lot of zeros), it is definitely a big player. Looks like they're okay with no longer being a non-profit.
It's unfortunate that the industry has had such a difficult time establishing some credibility and value in the public's eye, which has directly led to the growth of vision insurance. The public feels they need vision insurance.
We are a tremendous value when you look at other medical specialties. A simple E.R. visit will cost you what a comprehensive exam and a simple pair of glasses will. How can the public justify paying $400 for a GPS unit that takes them to the same places they've been going to for years, or sleep out all night in the middle of winter to spend $800 on a Playstation 3, but kick and moan about spending LESS to maintain healthy vision (which happens to be the sense that they value the most)?
Shame on us, we just sit back and watch.:finger:

[IndianaOD]

Well said.

[Uncle Fester]

I heard last week, from a very reliable source, that it is indeed Marchon.
Shame on us, we just sit back and watch.:finger:

The horror. The horror.

Cue- The Doors... The End

PS Jim Morrison died 36 years ago to the day today.

[john-atlanta]

I have also heard that it is Marchon. Who does that leave as big independents?

John

[optigrrl]

I thought the press release said "vision care companies" - wouldn't they have said "vision care products company"?

[allanon]

Can't stand Marchon either. I'd carry Lux before Marchon.

[Matthew]

Dont you find it amazing VSP has that kind of money?

Its really not hard to believe when a practice has been a VSP provider in the past and knows first hand how little the compensations are.

[chip anderson]

Anybody ever looked into VSP's books. Particularly the amounts collected vs. the amount paid out for patient claims. And of course the amount claimed to have been paid out for patient claims?

Chip

[Jacqui]

Anybody ever looked into VSP's books. Particularly the amounts collected vs. the amount paid out for patient claims. And of course the amount claimed to have been paid out for patient claims?

Chip

A good project for Congress and/or the IRS

[chip anderson]

Appearently at least the tax courts have looked into them.
I found the abouve post and link after posting my comments in this thread.

[tigerlilly]

What's the deal with Cigna and VSP? That whole thing is confusing.

There are too many monopolies, period, in too many industries. It's not a good thing for optical or any other business.

[Foveator]

I heard last week, from a very reliable source, that it is indeed Marchon.

So instead of a frame company buying a major insurance plan, here's an insurance plan buying a major frame company.

Both use the purchase to get into thousands of additional offices. Will another commercial chain be forthcoming or will a mammoth virtual chain arise in private offices to challenge the LC behemoth?

[allanon]

Does Marchon already manufacture the Altair frames for VSP?

[Foveator]

I'm puzzled by this part of the news release.

There would be no need to seek the approval of a CT regulatory department if it were just a frame company like Marchon or even a chain of labs being purchased.

It may be a bigger deal than we are imagining. Recall that RLI was a small "lens insurance" company that grew into a huge player in other markets before dropping optical altogether.

RLI reports record year

PEORIA, ILLINOIS, January 22, 2008 -- RLI Corp. (NYSE: RLI) – RLI Corp. reported 2007 net earnings of $175.9 million

($7.30 per share), compared to $134.6 million ($5.27 per share) reported in 2006.

[shanbaum]

There would be no need to seek the approval of a CT regulatory department if it were just a frame company like Marchon or even a chain of labs being purchased.

That would surprise me; I would expect any purchase of another business by a company that falls under the purview of the CT Insurance Department (which I would expect to include prepaid plan operators like VSP) would be subject to review. The Department's concern is directed less towards the purchased entity than the purchasing entity; they have to ensure the purchaser's ongoing solvency.

[brucekrymow]

Appearently at least the tax courts have looked into them.
I found the abouve post and link after posting my comments in this thread.

I saw that, too - VERY insightful. Hard to believe some of the stuff. It's a must-see. Here's the URL:

http://www.optiboard.com/forums/showthread.php?p=251432

[drk]

From the perspective of EyeMed vs. VSP, I would not be suprised.

What do they gain? I guess that they will (continue to) be in the frame retailing business as well.

Eyemed has the advantage of underselling VSP with groups; what they lose on the front end, they can make up on the back end...Eyemed collects dollars from employers and employees and then doesn't get burned by utilization, like VSP does.

I read the VSP report, too. IIRC, VSP collects $2 for every $1 paid out in benefits. The more the utilization, the less VSP keeps (used to be non-taxed, as well!). (Have you ever wondered why VSP doesn't provide members with plan identification cards? To keep utilization low.)

But Eyemed doesn't have that problem. Utilize to the members' heart's content...they'll upsell them at Lenscrafters, anyway. Generates foot traffic and gets people into the habit of buying glasses. Gotta give it to the guys.

Now if VSP owns Marchon, then they can have you order it from them online when submitting a claim, and they will make all the more. They can also compete with Eyemed in the healthcare buying market...lesser cost for equal benefits, subsidized by increasing frame sales.

Marchon makes sense: they're big and broad enough to compete in the US market. They're small enough in the sense that they're a US company. (It's not like they could purchase Safilo or something.)

The question will be: Who's AFTER Marchon? Tura? Just depends on when the DeBergs and whomever owns Tura is ready to ca$h out. Other than that, I don't see any plum US frame companies anymore.

[optigrrl]

VSP has been looking to go into the lab side, even the lens manufacturing part of the industry.

Zeiss/Sola wouldn't be opposed to selling off their US lab operations...:drop:

[Johns]

Does Marchon already manufacture the Altair frames for VSP?

Marchon doesn't manufacture ANY frames. They simple have their name put on it , and set up a distribution chanell to sell it.

[Johns]

Dont you find it amazing VSP has that kind of money?

Amazing? No... all that money used to go to the ODs, but they traded it in for more traffic.

(I say "ODs" because opticians can't take VSP.)

["X"]

Amazing? No... all that money used to go to the ODs, but they traded it in for more traffic.

(I say "ODs" because opticians can't take VSP.)

ODs AND labs.

[rdcoach5]

Marchon doesn't manufacture ANY frames. They simple have their name put on it , and set up a distribution chanell to sell it.

I know , or at least I have been told, that Charmant always made their memory metals, but I find it astounding that they never made their own frames. If that is true, how did they (Marchon) ever get their start in the frame business?

[Fezz]

I know , or at least I have been told, that Charmant always made their memory metals, but I find it astounding that they never made their own frames. If that is true, how did they (Marchon) ever get their start in the frame business?

Avant-Garde/Luxottica!

My understanding is that Avant-Garde, which was family run, was sold to Lux. The Moms, and Pops, with their new found riches, funded a couple of their kids eyewear ventures=Marchon.

I am probably wrong, but will research for real facts!

OK...

Here is what I was looking for!! Sorry it took so long!!!

http://www.optiboard.com/forums/showthread.php?t=14914

[optigrrl]

My final answer (guess) is:


CIGNA