I work with an O.D. and we currently take VSP signature plan only. We received a letter from VSP stating as of Jan. 1, 2013 says "Network Doctors will be automatically enrolled in the Choice Network" If that is true and we have no say in the matter, we are thinking about droping VSP.
Your thoughts?
There are many things in life that catch your eye... but very few things will catch your heart.... Pursue those!
Your doc needs to talk to colleagues about what to do. There are many things besides optical that goes into being a VSP provider. Does he/she visit odwire.org? That's where I suggest she/he ask this question.
Yes indeed, a big time odwire guy. We are just trying to get a take on Opti Board as well.
There are many things in life that catch your eye... but very few things will catch your heart.... Pursue those!
VSP Signature Choice is not even close to being the same as regular Signature, and the reimbursments are dismal. Its a bad deal for practices who pride themselves on customer service because you simply have to make cuts somewhere if you take a lot of Choice patients.
There may be legal issues in some states with VSP unfortunate actions, and contract issues as well, depending on your contract terms. So you may have a strong legal defense depending on where you live. Your best bet is to work with your state association to strategize a response that applicable to your area.
I am dissappointed with VSP for forcing poor plans on their providers, its just one more example of how callous they have become. Instead of making the Choice plan more enticing, they are using simple brute force. The only reasons I can fathom that they do this is that they have been busy moving employers from Signature to Signature Choice that will be effective January 1st, and they realized they don't have enough providers to meet the need. Think about it, the provider list employers hand out usually goes out at the end of January, its not uncommon to schedule a ton of appointments when people get their benefits packets. Either that or VSP has a new exclusive contract with the Federal Government or another large employer that requires them to have a certain number of providers by a certain date.
I have had 4 practices drop VSP this year, and 3 are all doing better without VSP, than they were with it, 1 is on the fence. What you do is up to you, people are risk averse in going up against VSP, but if you gather some like minded friends and come to a plan of action together, you are more likely to be successful. If VSP has a contract obligation to fulfill though (which they will never reveal) they are likely to play hardball. But your business could be in danger if you don't respond in some way.
I am curious, do the majority of practices on here that accept VSP, only choose to accept the Signature Plan? We have always taken both, but our "always" in only a year and some months old and we will take almost every patient can get our hands on. There are a few exceptions of course, but not too many. For those who are dropping VSP altogether, what advantages are you seeing in your practice? Obviously it would not be an option for everyone.
A man went to an eye specialist to get his eyes tested and asked, "Doctor, will I be able to read after wearing glasses?"
"Yes, of course," said the doctor, "why not!"
"Oh! How nice it would be," said the patient with joy, "I have been illiterate for so long."
I don't believe OR is an exception state.Originally Posted by sharpstick777
Are you even aware of why choice was brought to market? You do realize to make it more enticing the client would likely incur higher costs thus likely not go with VSP/Choice but rather Eyemed or another lower cost option right? Perhaps they should make the offer open to other markets besides OD/MD's? Would you prefer they do that? I know plenty of opticians or retail chains that would love to take that business. All you have to do is attend Vision Expo in NY to see that. Careful what you wish for.I am dissappointed with VSP for forcing poor plans on their providers, its just one more example of how callous they have become. Instead of making the Choice plan more enticing, they are using simple brute force.
Doubtful; the percentage that don't take both is low single digits. Why would they "move" clients to a lower cost plan? Doesn't make sense. Clients are insisting on lower cost plans and retail options. You really need to work more closely with them and perhaps do some co travel.The only reasons I can fathom that they do this is that they have been busy moving employers from Signature to Signature Choice that will be effective January 1st, and they realized they don't have enough providers to meet the need.
Nope, my guess is plans are consolidating as they prepare for Eyemed to begin their offering that will compete directly with Choice and perhaps direct work to the lab of their choosing. Lux is finishing up construction of their super lab in China in prep for lower cost needs and volume that will result once the Exchanges are put in place by our beloved Obamacare. VSP has nearly 30k providers. They don't "need" more. You know that. If they needed wider net of providers for a plan, they would likely just continue to expand their retail affiliate program that is client driven.Think about it, the provider list employers hand out usually goes out at the end of January, its not uncommon to schedule a ton of appointments when people get their benefits packets. Either that or VSP has a new exclusive contract with the Federal Government or another large employer that requires them to have a certain number of providers by a certain date.
Choice has higher copays for the patient, but the total reimbursement (copays plus plan payment) is still better than Davis, Eyemed, or Spectera.
Harry
Right. I don't have any issue with Choice plans. In fact, total profit to the practice is higher than with Signature. VSP reimburses a bit less, but the patient pays a fair bit more, and the net left to the practice is higher. What's also nice is many of the lens options are charged to patient at 80% of your U&C, so your pricing become a factor. With Signature your pricing is irrelevant. The only person who gets less from Choice is the patient. But that's because they or their employer chose the cheaper plan, so obviously they ought to have reduced benefit for reduced premium.
Dan makes good points. I would also add that VSP makes it much easier on the practice in figuring out how to bill and what to expect in reimbursements. You actually have a shot at reconciling you're transactions with them. In other words, you can actually preform financial forecasts. Eyemed is insane when it comes to this. Of course, nothing rules the ease of doing biz like a private pay. :)
Last edited by AustinEyewear; 10-13-2012 at 12:59 PM.
It will vary by area, in this area the total reimbursements for Choice are about just over half of what Signature offers in the Northwest, I just did an audit for an account and Choice came out at about 40% less per patient. And Eyemed, if you work it right, can actually be more profitable that Signature here. As a result, very few people here take the Choice plan.
I was wondering if that might be the case. Here in TX, we'd rather see Choice than Sig. It will also depend on what type of products you offer. A low budget office may prefer sig. EM more prof than sig, but not choice.
Then providers shouldn't complain if employers selecting choice demand a retail affiliate be added as an option for their employees. Just a thought because the reality is employers aren't going to pay more if the market up there is low.
What do you mean by retail affiliate?
1320 always shows up to have VSP's back. You represent VSP in some capacity.Nope, my guess is plans are consolidating as they prepare for Eyemed to begin their offering that will compete directly with Choice and perhaps direct work to the lab of their choosing. Lux is finishing up construction of their super lab in China in prep for lower cost needs and volume that will result once the Exchanges are put in place by our beloved Obamacare. VSP has nearly 30k providers. They don't "need" more. You know that. If they needed wider net of providers for a plan, they would likely just continue to expand their retail affiliate program that is client driven.
I happen to agree with your (VSP's) assessment, however. No vision care sales on the exchanges and VSP's model needs a radical, radical change, and this is a first step.
Remember, with 30K providers, VSP can afford to **** off half of them, and they will.
In our area and many others they have added ECCA and other accounts to satisfy clients who demand a retail option before a bid can be submitted. I don't see it as a big deal as only those clients members can go to the selected chain. I've not lost any of the ones I know are open to going there. In the end it's up to me to insure they don't anyway.
You know me so well....ironically you do ;) Still taking VSP are you? Why haven't you dropped off?
Careful what you wish for....I happen to agree with your (VSP's) assessment, however. No vision care sales on the exchanges and VSP's model needs a radical, radical change, and this is a first step.
FixedRemember, with 30K providers, VSP can afford to **** off half of them, and Obama will insure that happens.
I am interested in knowing how bad exactly this is. I mean ... customer service should not even be in question here. Especially considering that, taking in new Choice patients does not exactly take away or affect the incoming or already established Signature patients care. ... Or does it?
Why are we so limited to perceptions of "losses"?
In this area, Choice pays about 40% less than Signature. You can't lower all your costs (like rent, power, computer software etc) equally to compensate for lower reimbursements, which means you have to shift your volume up, or lower labor costs... substantially... only make the same profit you were before. Is your landlord going to drop the rent 40%? No. In the event you see a lot of these patients, you will have less time for your cash and higher paying insurances who may flee for higher service practices now that yours is busier, because they demand and service. And then you are stuck taking even more lower end insurance patients and the cycle deepens. Soon the carpet is threadbare and you haven't had a raise in 3 years, and then more patients flee. Eventually, you do too.
I have a question, What are the top "legitimate" reasons for VSP to turn down a lab? The more I read about these guys, the more I am leary.
Sjoseph51, Welcome to Optiboard!
VSP has only added 1 lab on their list of approved labs in the last 12 years, in Arizona. A couple of years ago they dropped over 40. They are not required to accept new labs, or to give reasons why they don't add more. They have been building their own lab network, recently renamed VSPOne and have 7 labs, but are expected to open/buy a few more geographically.
VSP won't go quietly. They will turn inward, if necessary, to become a player that will mirror Luxottica. Totally vertical. Retail outlets, etc.
Or what they are doing now, making deals with medical plans to pay through them and at their lower (vsp) rates. Just got a note from Cigna that they are going to start billing through vsp.
Ask VSP?
In reality, the question would be why would they need to add any more contract labs?
I heard this week, that in Calif (and maybe a couple more states) that VSP will ONLY offering VSP CHOICE to potential clients starting in Jan 2013, and will start transferring current clients who already has VSP Sign to VSP choice in the next 2 -3 years.
THAT is why VSP will be buying more labs, that is why the current labs I now use for VSP sign are coming to my office wanting to show me how to do SLA (Special Lens Options) for things like Vallilux S and Sapphire AR so that all the VSP Choice jobs wont go to VSP labs.
More and more of my pts are VSP Choice and I have to use VSP lab in Sacramento (or I just started this week trying VSP lab 1 in San Diego for Choice jobs only , not Healthy Family) -- and I REALLY dislike VSP lab and their low quality, high breakage and slow delivery.
I am now doing 2 -3 times more VSP Choice here in Calif than I do VSP Signature ( a BIG change from even 1 year ago) and it sounds like soon I will only be doing VSP Choice, HF or RNP (State of Calif) VSP pts and only send my jobs to VSP labs.
Thoughts?
The official response we constantly receive is "we have several contract labs in your area, and you don't offer anything our members can't get elsewhere."
"Some believe in destiny, and some believe in fate. But I believe that happiness is something we create."-Something More by Sugarland
Nail on the head drk, nail on the head. Actually, they have openned a few VSP owned clinics obstenisibly to keep clients.
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