VSP and Costco

[kcount]

At least you’re honest. You actually sound just like the very same description so many here have said about your beloved VSP. “ They take your money and don’t care. “ Ironic.</quote>

ironic? That OD's and Opticians think alike or that I don't like 3rd party but would be willing to enjoy the increased revenue? In the end we're both businessmen.




<quote>
Considering they were formed by OD’s for OD’s and support OD’s…….You or anyone have yet to show me a business model that would support your belief that VSP will go retail. You must have missed my previous post covering that.</quote>

I didn't miss the statement that Costco was specifically asked for by Trader Joe's etc. but, if an organization that is of OD's and for OD's than why do they allow MD's on the panel? Are MD's not MORE of a threat to your business model? Is a medical doctor than can do refractions AND Sx not your enemy? Am I more of a threat if I employ said MD?
As to VSP going retail, they have already by doing the "test market with costco" Their testing the waters to see if the patient base will take less to have more options. here's your business model, Insurance company starts quietly buying small regional chains under dummy companies, to the outside world there's a new player in the game, except they are all on the panel for VSP. slowly one towne/city after another gets doors opened. Finally the Coup De Gras, VSP announces they have purchased controlling interest in company X. VSP has offices every where, and OD's are on the line. Don't worry though, this is all being done to support the independant OD from those nasty Lenscrafter people. yeah, and essilor wants to help me too.

<quote>
Also, please tell me what would my practice look like without VSP in the world? Would I still have a huge population of patients headed my way or would EyeMed be the big player and directing even more people to Lenscrafters? Would they in turn raise their reimbursements to me as a way of saying “Wahoo, VSP is gone!!” ?</quote>

Well, if we use a basic concept that 85-90% of your practice is presently VSP and If we were to remove the forced allegiance to your practice by VSP than we could optimistically state that you would lose 30% of your revenue over night. Given that that 30% of your patient population is not loyal but simply follows the insurance. This is a very giving number to say that 60% of your patients would rather PAY MORE than go somewhere else and recieve the same services. Thus you now have 70% of your current revenue stream, what does your office look like now? VSP doesn't love you sir, they use you as they would use me. VSP loves the bottom line, and ONLY THE BOTTOM LINE.

As to your question about Eyemed. No, of course they don't increase their reimbursements! Although I bet the C level exec's toast to their new found fortune.

<quote>
So tell me where EyeMed directs their patients vs. where VSP does? I know, I’m beating a dead horse.
Follow the money and tell me where EyeMed monies go.
Enlighten me too on how VSP supporting OD’s is causing them to lose market share. How is that impacting their battle with EyeMed at the Provider level?
</quote>

Good question. The monies flow to Mr. Del Vechio of course because all monies flow to the owner. Eyemed directs their participants to all sources of eyecare and materials including OD's, opticians and their own stores. We all know that going in and we differentiate by our skill sets.

<quote>
Would any of us be better off if VSP lowered their prices to companies nationwide and drove their employees to retail stores like Pearl or LensCrafters? Would you benefit from that? I wouldn’t.

Actually, I probably would benefit from that as would several other independent Opticians that I know. A significant amount of the population wants someone thats skilled and knowledgeable and we both know that can't or at least is a rare find in the chains.

[Jubilee]

Ok.. I have no horse in this race. I am a managing optician of a practice who happens to do 90% of the insurance stuff. If I were an OD, I would also be waving the VSP flag. I know my rep will drop here in mere minutes because through my husband's employer (fed) we have VSP as well.

The reimbursements we receive from VSP signature plan far exceeds what we receive from the average Eyemed plan. The exam portion alone is $xx more. Single vision lenses, my dispensing fee from VSP is higher than the reimbursement from Eyemed, though I have to pay for the cost of goods through Eyemed. When you upgrade from the basic there is a chance you can make more money, however it all depends on your ability to control the cost of goods. In essence, my belief is that the IOF program is to allow us to make up the differential in those costs, if we are willing to do some of the work ourselves. The info I heard was the cost of the lenses were on par with the major stock houses, and the main reason they require you to buy them from VSP was make sure you gave that patient the poly with advance, not the somo with generic AR.. though you charged them for a cat D ARC. I am sure that another factor was that it would help offset some of the additional provider reimbursements by having us give them money back in return. ..

As a client, I like VSP because they offer more for their plans. Sure, I pay $10 more a month to have VSP compared to Davis or Specterra. I am also a lot more confident in the product, and my costs in the end are significantly less. (Even if I were paying the full copays ;) !)
$xxx for a FF lens, compared to 80% of U&C -$xxx. In most offices their would be a significant cost difference both to the patient and to the provider. My FEP plan covers photo, poly, ARC, and many other options for that $120 more a year. Davis charges for each of these items. Manufactures them in their own lab, to provide a reduced warranty compared to the manufacturer's warranty.

In some of the more recent Eyemed plans, they now have set copays for certain progressives. Usually they are about $10-15 more compared to VSP's copays. However on a Panamic I can't make nearly as much money selling it for their price and paying for the cost of goods, compared to collecting a straight dispensing fee for the pal. We support VSP because we make more with VSP. They are also a lot easier to deal with on things too. If I were truly independent.. I would probably feel a lot different about it :)

[kcount]

hmm, laid out a plan of action for VSP and still nothing. Probably talking to the ODwire.org guys for a hammered out response.

[loratz]

This is a "WHAT IF" moment.What if a group of certified opticians that owned their own practice decided to group together to get in the insurance game for reimbursements for durable goods(glasses & contacts).But only 1 catch, ODs & MDs are excluded from taking this insurance.Result,continuous lawsuits from these ODs & MDs on how that's not fair and they want part of it.The Dr.s of course,would have it nipped in the bud within a year(due to unlimited funds and contacts) become eligible because they would say it is illegal to let some people take it and others can't and due to my credentials I would be well qualified.Kinda makes you think when the shoe is on the other foot.:bbg:

[ak47]

Lets revive this thread...are there still just a few v.s.p groups that are considered "in-network" at costco or is it many all of the groups now?

[ml43]

Lets revive this thread...are there still just a few v.s.p groups that are considered "in-network" at costco or is it many all of the groups now?

costco is considered an affiliate provider.

for almost all plans(except discount and exam only), they are able to bill out of network and get reimbursed directly through their affiliate provider website/portal