Lawsuit : Noveau Optical to VSP

[sharpstick777]

A Redmond WA lab was just dropped from VSP as a prefered provider. They are suing VSP in response. I believe about 60 labs are destined this year to be dropped by VSP and this is just one.

The Seattle office of the FTC started investigating Essilor a few months ago for different reasons.

The Washington Department of Insurance was also already investigating VSP because they are the most profitable insurance in the state of Washington (ie, more money is sent in premiums than is returned in benefit payments by the tune of $50 Million dollars in WA alone).

I have enclosed a copy of the suit for your pleasure. Chris has started a Poll on this thread and has posted addresses of the parties involved:

[Jubilee]

It will be interesting to see where this leads..

[LENNY]

They have 600 VSP assotiated labs!?

[Chris Ryser]

Originally Posted by sharpstick777

The Seattle office of the FTC started investigating Essilor a few months ago for different reasons.
The Washington Department of Insurance was also already investigating VSP because they are the most profitable insurance in the state of Washington (ie, more money is sent in premiums than is returned in benefit payments by the tune of $50 Million dollars in WA alone).

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After having glanced through this 42 page document, I have come to the conclusion that this document is not a law suit, but a letter to the Governor of the State of Washington, the Antitrust Division Chief of the State Attorney Generals Office, the Insurance Commissioner and the Federal Trade Commission with the following subject:

Re: Insurance Code and Potential Antitrust Violations in the Eye Care Industry

If any of the mentioned receipients will take any action on these documents they have been a real bombshell in the optical trade

It is just stunning to read and there is plenty of documentation. I think that it could lead to an interesting discussion on OptiBoard having looked through it and if any action is taken by the State it could become a Tsunami.

[sharpstick777]

Originally Posted by LENNY

They have 600 VSP assotiated labs!?

My bad, VSP had about 400 associated labs and they announce last Spring they were ending their contract with about 60 labs.

[YrahG]

This information contains wholesale prices in the middle around page 18 or so it gives the VSP contracted price to the labs as a reimbursement. I appreciate the copy of the Essilor agreement we've all know a thing existed, but wow to see it for real, do they really not allow their partner laboratories to compare products to theirs without the laboratory giving favorable results, that seems unreal.

[LENNY]

Originally Posted by sharpstick777

My bad, VSP had about 400 associated labs and they announce last Spring they were ending their contract with about 60 labs.

So they are trying to sub 60 private labs with one lab that they purchased with Essilor?

[coupe]

Time to support Noveau by (all ECP) sending a letter,email etc. to the enclosed gouverment officials expressing our support for Noveau and confirming the immediate need for an inquirery. Noveau's action could be the opening of the "can of worms" and the more support we (the ECP) show for their action, the more likely that the gouverment will repond. Just my opinion.
PS: Email already sent.

[Framebender]

the best of luck! I wouldn't mind seeing VSP & Essilor being taken down a notch. They've both become increasingly arrogant over the last few years in my opinion.

[Uncle Fester]

I wonder if an on line friend of the plaintiff petition would be helpful/practical? Anyone want to contact the law firm??

[Chris Ryser]

......and sharpstick777 supplied all the details on his thread yesterday.


as per EyesWays New and Vision Monday


Wash.Lab Files Antitrust Complaint Against VSP, Essilor


NEW YORK—A recently announced plan by managed vision care giant VSP to reduce the number of labs in its nationwide contract lab network has prompted the owner of an independent wholesale optical laboratory in the state of Washington to file a formal complaint with state insurance and law enforcement officials and the Federal Trade Commission (FTC). The complaint, the first of its type to surface, cites “insurance code and potential antitrust violations.” It claims VSP’s actions put the lab “at risk of being forced out of business.”


................and they do not publish the details as you got on OB

[coupe]

I swear....this is the "KICK AT THE CAN" that all ECP have been waiting for. If you do not take the time "NOW" to speak your piece, then don't complain later when Essilor rolls over everyone. The louder ECP shout to the goverment ,on this case, the more likely the goverment will take action.Contact Washington's governor...the plantiff's lawyer, your Republican/Democratic leaders. Speak up NOW.

[bob_f_aboc]

My letters to all parties named in the complaint have gone out in today's mail.

[coupe]

I am amazed! 18 comments at EOH when I complain about rude remarks about Canadians and 6 votes on Chris's poll for Nouveau Optical. This says alot about what is happening here. There is more talk...complaints...jazzing....beer talk and response to Great Glasses than there is to the opportunity to "slow down' some of VSP and Essilor expansion.

How many ECP have contacted the goverment or the lawyers? How many have spoken up in support of Nouveau Optical? How many of us have complained about VSP/ESSILOR and now that we have an opportunity to request a goverment intervention.....HAVE DONE NOTHING?

Totally unreal.

[bob_f_aboc]

I have sent letters in support of Nouveau Optical to the Governor of the State of Washington, the FTC, the Attorney General of Washington, the Inusrance Commissioner of Washington, and the attorney representing Nouveau Optical in this case.

If there is enough support behind this, Washington will just be the beginning. Actions like this need to be taken in all 50 state, and I will support them all in their fight.

[sharpstick777]

Originally Posted by LENNY

So they are trying to sub 60 private labs with one lab that they purchased with Essilor?

The VSP lab in Columbus Ohio has lost money since the day it openned. I suspect VSP is cutting labs in part to generate more revenue for their operation in Columbus.

It also gives them more leverage to negotiate prices. The Signature Choice plan has a lower reimbursement than the regular Signature Plan. With fewer labs they can put more muscle to reduce prices. I suspect its also behind their announcment to allow offices to edge in house next year.

[Jacqui]

Don't forget, EOH is covering this too.

[sharpstick777]

Originally Posted by Jacqui

Don't forget, EOH is covering this too.

Who is " EOH " Jacqui?

[sharpstick777]

Does anyone know of any other labs that have been dropped by VSP? They should be made aware of this as well.

[Jacqui]

Originally Posted by sharpstick777

Who is " EOH " Jacqui?

http://eyeoverheard.wordpress.com/20...iled/#comments

[cocoisland58]

Originally Posted by coupe

How many ECP have contacted the goverment or the lawyers? How many have spoken up in support of Nouveau Optical? How many of us have complained about VSP/ESSILOR and now that we have an opportunity to request a goverment intervention.....HAVE DONE NOTHING?.

VSP has a lot of underhanded things going on right now. Speak up in support of Nouveau? Sure,as long as the big guy doesn't find out about it. They've (VSP) already squashed the ECPs in the Detroit area in favor of non doctor owned chains in violation of their own rules and no one dared say a thing. They have us just where they want us.

[obxeyeguy]

Originally Posted by cocoisland58

They have us just where they want us.

Just remember how all this happened, as someone opened the door, and let them in. Hey, the cat's out of the bag, they are bigger than you, and you need them way more than they need you. Their sandbox, and they decide who get's to play in it.

[thep]

Are you saying control of the sandbox can not be regained, or people are too scared to try? Come on, the road less traveled is more interesting and way more adventurous! There is more to this than each of our own little corners.

[obxeyeguy]

Originally Posted by thep

Are you saying control of the sandbox can not be regained, or people are too scared to try? Come on, the road less traveled is more interesting and way more adventurous! There is more to this than each of our own little corners.

Control not be regained? You never had control, as they only let you play in the very outside of that sandbox, and not in the middle where all the cash changes hands. How do you plan to overtake the empire you opened your arms to years ago?

Yes, I believe they are scared, as they in fact have given up control of their practices to this machine, and now they protest. Big changes are coming in the future, and many will be left out.

[Chris Ryser]

Originally Posted by coupe

I am amazed! 18 comments at EOH when I complain about rude remarks about Canadians and 6 votes on Chris's poll for Nouveau Optical. This says alot about what is happening here. There is more talk...complaints...jazzing....beer talk and response to Great Glasses than there is to the opportunity to "slow down' some of VSP and Essilor expansion.

How many ECP have contacted the goverment or the lawyers? How many have spoken up in support of Nouveau Optical? How many of us have complained about VSP/ESSILOR and now that we have an opportunity to request a goverment intervention.....HAVE DONE NOTHING?

Totally unreal.

..........coupe, you are so right. OptiBoarders have complained for years that the world is not treating them right and more and more independents are disappearing. It is in fact pathetic that there is not more pep among them.

Their livelihood is and will be shrinking by means of vertical integration of the large corporations and on the other side the growth of the on-line optical outfits.

14 members have voted on the poll over a 3 day period and 5 of them have said the that they will give active support. What a shame that the use of an OptiBoard with instant communication is used just for small petty talk, but when it comes to give some moral support to a real life cause they hide in a closet.