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Thread: What about EYEMED?

  1. #1
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    What about EYEMED?

    In some conversations I have had with other opticians and reps regarding Luxottica, Lenscrafters, and the eye plan known as EyeMed, I have been on the fence about becoming a provider.

    I am posting here to get some comments about the program. I would like to know how well (or not) it has been for you current members. How has it been on the profitability respect? Were you obligated to purchase 'their' frames, if so how many?
    Basically, What About EyeMed can you tell me?

    Thanks for any and all inputs

    :cheers:

    Cowboy

  2. #2
    What's up? drk's Avatar
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    Cowboy,
    I have a general idea about EyeMed, but I'm too lazy to go into the specifics, so you may want to double-check what I say.

    EyeMed's concept is not for Luxottica to make money on the insurance program itself (like a normal insurance company), but for Luxottica to sell more frames. Ergo, their approach is to require you to carry about (please check this) the dollar value equivalent of 200 frames.

    I'm not sure about their reimbursement rates, but I would imagine they are similar to VSP's.

    It has been said that the Cole acquisition was mainly to buy their access to employers, since they have an aggressive third-party sales force (I was with Cole awhile ago and got to know the higher up's in the third party department: smart and aggressive).

    So now, EyeMed will become a somewhat distant #2 to VSP in number of lives covered. It is yet to be seen how well they can sell EyeMed to groups, though. Assuming they are good, they may be a force, but they aren't around here, unlike VSP.

    So what is likely to happen with the acquisition? My guess is that they will eventually cut the fat out of Cole, upgrade their pathetic inventories to Luxottica products, and somehow straighten out their woeful lab situation, eventually. Their problem will be the culture clash, and the fact that there are so darn many Cole outlets to manage and staff. (They may be sorry they did this, eventually).

    I picture the top 2 chains now being Luxottica outlets. Do you want to be one too? I don't. We have to be "the anti-Luxottica". As I understand it, Luxottica now has only about a 6% market share in private practices (compared to about 24% for Safilo and 22% for Marchon). I think it will drop further.

    I envision this: a two-tiered world, like in the cold war. First world: private, non-Luxottica-dispensing, VSP-accepting practices.
    Second world: commercial, Luxottica/Eyemed outlets. The differences are becoming more and more discrete!

  3. #3
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    My main complaint about eyemed is that the benefits are very ambiguous. The benefits are anything but straight forward and it comes across that the company is going out of its way to confuse you.

  4. #4
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    I agree with much of what DRK has to say about the reasons for the Cole acquisition, etc.

    However, I want to make one clarification on the information provided about the frame purchase requirements. The sole purpose of EyeMed's existence is to push Luxottica product into the market. That's it. They don't care about the money they might or might not get from employer groups who sign up; they're not terribly concerned about the reimbursement to doctors...again, it's about selling frames, Luxottica's core business.

    Last year (in fact one year ago to this day), Luxottica changed their frame purchase policies for independent doctors on their plan. It used to be that offices had to purchase 200 Lux frames to belong to the plan, or about $7500 in inventory.

    Now, the office is required to purchase $100 in Lux product for each EyeMed patient seen. This is on a retroactive basis, and as I understand it, assessed annually (although this is unclear). Your first 25 EyeMed patients are "free" and you have no obligation. After your 150th patient, you are also done with your frame purchase requirements for the year.

    So, for some examples...if your office sees 27 EyeMed patients, you will be required to purchase $2700 worth of Lux product. 142 patients = $14,200 worth of product. 186 patients, $15,000 worth of product...but let's face it; if you are seeing that many patients, you're going to be forced to only buy Lux product. It's a brilliant solution if you think about it. Over the course of time, your office will be carrying only Lux product because you are obligated and can't afford to offer any other lines.

    Oh, and the icing on the cake? It doesn't matter if the patient even purchases materials from your office (or anywhere). If they see you for an exam and you have a dispensary, you are still required to buy the $100 worth of product for examining that patient.

    Best of all for Lux? Patient goes to the independent for an exam and takes their script to LensCrafters to be filled. Sure, they pay you for the exam, but you buy $100 worth of product that cost them $1.38 to manufacture overseas and ship to the US. You're on the hook for the Lux frame, and the patient goes into LensCrafters and buys...you guessed it: A Lux frame that is probably marked up higher than yours.

    Final comment? With managed care, you're either with chains or against them. Cole & EyeMed = Sears, Pearle, Target, Lenscrafters, etc. Other plans (VSP) = focus on independents. You may not like it, but it is here. Pick your bedfellows carefully; you may be quickening your own demise. My $0.02; your mileage may vary.

    Good luck.

  5. #5
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    At first, I was going to accept Eyemed, simply for the added flow of patients. But recently, prior to this post, I have been hearing aweful comments about the process. I am a proud independant, and I am sure against the chains for numerous reasons, to many to list, now that I see what you folks are saying, it sure pushes me in the direction that is smartest - to stay away from them.

    Keep your comments coming if you like. Thanks

    :cheers:

    Cowboy

  6. #6
    Master OptiBoarder OptiBoard Silver Supporter varmint's Avatar
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    I had a VSP lab tell me VSP has had talks with Lux. It wouldn't surprise me to see Lux own the whole managed care market.

  7. #7
    OptiBoard Professional fletch's Avatar
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    Cowboy!


    First off I HATE MANAGED CARE! I think most people do!

    I do take Eyemed. Why? Because it makes me more money than I could without it! If I was busy enough I would get rid of the plans I take from the bottom up. If you sell up you can make good money with Eyemed.

    As far as the frames go I buy Luxottica product that sells for me. I don't think a rep has told me to buy more frames or I would be kick off the plan. I had about 200 Eyemed claims last year.

    If I could not sell Luxottica product or they made me buy more than I could afford I would drop the line.

    The only thing that worries me is what they might do if every independent stopped buying from them.

  8. #8
    OptiBoard Professional fletch's Avatar
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    Also,

    I don't take Cole. The plan stinks and I can't sell the frames anyway. If Lux makes Cole, Eyemed that works for me!

    Luxottica wants me to buy frames. I want more customers. That works for them and it works for me. It the only frame company that sends me customers.

    If they buy Cole and kick me off Eyemed then all the product goes. If they don't and the raises prices in BJ's< Target ect. plus close stores here and there that works for me too.

    I have a Lenscrafters and a Pearle company store right down the street. I would love to see them close one of them.

    Finally, I don't love Luxottica I don't hate Luxottica if they actually do something that hurts me its over. We shall see!

  9. #9
    OptiBoard Professional fletch's Avatar
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    Drk,

    Where did you get those market share numbers. I find it very hard to believe that Safilo and Marchon have 46% of all private business! Add Luxottica and that make 52%

    What about Charmant, Viva, Modo, Clearvision, and the 500 other companies. They only have 48% to split.

    I don't think so!

  10. #10
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    It is a contradiction of terms to say that you are an independent that takes Eyemed. It is an oxymoron.

    You aren't independent if another company...

    -tells you how much to charge for an exam
    -tells you how to perform the exam
    -tells you what you must buy
    -tells you what you must sell
    -tells you how much you can charge (Oh thank you allmighty Lux!)
    -tells you how much profit you can make ( " )


    This makes you an indepependent what ? Independent marketer for Lux ? Independent Lux rep volunteer ? Have you taken an independent leave of your senses ??
    :D

  11. #11
    OptiBoard Professional fletch's Avatar
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    Johns

    Your right but it's not just Luxottica its all managed care. Every plan takes away your independents.

    If you can live without plans thats great. I can't!

  12. #12
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    FLETCH,

    I agree...

    You can insert the words "managed care" where it says "Eymed".

    VSP was the scourge of OD about 5 years ago, but now that there is a larger foe in view, VSP doesn't look too bad to them.

  13. #13
    Rising Star OptiBoard Bronze Supporter casey's Avatar
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    Heads Up!!

    I just left LC(thank god). Look for Sears closures and Cole 'managed lives' to become EyeMed clients. The Pearle casualties will be high. Opticians will be moving in numbers higher than the AO/Optrex debacle or anything we've seen before.
    Back in the day; Never mind...
    It the strong(or isolated)that will survive this new round: And we will.The 'muti-practices,the hospitals, the boutiques,(if they keep their wits about them). Other than that: It's the chains for we peasants.
    It is darn hard to beat LC's package, if you're good. However,everyone knows more LC alumni than LC employees.
    BUT: The trade may be able to pick up some fine help when dispensing and lab people become available(I'd guess beginning around this time next year.A lot of opticians, at every level, prefer to avoid chains. For many of the same reasons customers do. Casey

  14. #14
    What's up? drk's Avatar
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    Fletch,
    I saw it in writing (Jobson data) from a Safilo sales rep when I specifically asked them that question. I've asked two different Safilo reps the same question and they gave close to the same answer. There are only 3 or 4 companies that have double digit penetration into the private market. I have not verified this, but Jobson may be able to.

  15. #15
    OptiBoard Professional fletch's Avatar
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    Drk

    You said you saw it in writing and you said you have not verified it. Which is it.

    I don't doubt that Safilo has more independent business I just don't think it is 24%.

    How to you define independent. Does that include Safilo's numbers with Walmart and franchise Pearle ect.?

    I have 3 stores and have never been contacted by jobson! I wonder how they collect data.

    I would love to see those numbers if anyone could find them!

  16. #16
    What's up? drk's Avatar
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    Fletch, cut me a break, man!

    When I asked the Safilo rep, he said "I'm not supposed to show you this, but..." and then he pulled out a bar graph ( I think generated by Safilo) and the numbers were there. I don't know if it was actual raw statistics from Jobson, and I didn't read any details on the methodology, etc., but that's pretty much what the bar graph said. I'll try to do research on it and get back to you to verify it's accuracy!

  17. #17
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    Could you keep the responses for the origonal question please. I did not post to make this a debate on who has what for market share. I was looking for opinions on EyeMed. I got some, too which, I do appreciate. I am looking for ways to expand my patient flow. Although I have a good number of patients, I want more. If you can contribute to that, then use this thread, otherwise, post another thread.:finger:

    Cowboy

  18. #18
    Ophthalmic Optician
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    Cowboy,

    If "patient flow" is the goal, sign up for Eyemed and as many other third party plans as you can.

    "Flow" doesn't pay the bills in my offices. (I'm not just being a smart alek). Some plans (Eyemed, VSP & NVA come to mind) will actually tell you that the main benefit of the plans is that they build "traffic" or "flow".

    If you feel you must augment your practice with 3rd party, there should be no stigma attatched, just stick with the plans that will allow you to make the profit YOU want to make, not what they decide.

  19. #19
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    Johns,

    I agree wholeheartedely. My philosophy is this: The more patients you can get to walk through the door, the more opportunity you can get your community of loyal patients to return. Not everyone will maintain the same insurance for any extensive period of time. The average length of employment with people is 4 years. Then they move on, or their insurance changes. Maybe they loose their insurance. With that said, as long as I provide the best possible service, materials, and care to each, I possibly gain the trust and loyalties that make a business thrive. Lets face it, with they way the industry is going, we have to make such an impact with people that they don't even want to look at LC, Sears, JCPenny, BJ's, etc. They will learn what a private practice can do for them and how it makes them feel. Emotional attachment i.e., trust, personal attention, etc. is the key to longevity.



    :cheers:

    Cowboy

  20. #20
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    Cowboy is right on the money.

    I will add that great service earns you word-of-mouth referrals, which are GOLD. If you do it right, you'll get the insured employee's spouse/partner, family, friends, neighbors, etc.

    And most importantly, as Cowboy points out, the insurance does not last forever. People change jobs; companies change their insurance plans...people like to go to the same place where they have a relationship established and are comfortable with the staff.

  21. #21
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    Thank you for your kind words Klewless. I think, together as privates, we can make a difference.

    :cheers:

    Cowboy

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    Bad address email on file Mikef's Avatar
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    Cowboy,

    Have you checked your Private messages?

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