The "new" VSP??

[Jana Lewis]

klewless70503,

I will agree with most of all of what you said, the issue on this thread was initially that VSP had changed it's policies and are offering patients an extra 20% off frames. The whole point of this thread was to try to find ways to offset this cost infringement. I realize that insurance is not going away, we do try to make it work for us, it's just that little by little we end up getting pushed and pushed, further and further until it becomes very difficult to make even the simpliest ends meet! I'd like to know your honest opinion how I can make VSP work for me when I have a patient that wants the "bare bones" and VSP reimburse's me LESS than what the frame costs me? How does that work?? Lastly, private pay patients also get penalized for me having to jack up the frame price...how do I keep my patients from going from elsewhere?

[paw]

We have been doing great with Altair's Diamontite and Revlon lines. We just started carrying Revlon and we sold 2 before they were even tagged!

VSP is trying to be helpful to private practice ODs but they also have to be concerned with pleasing the employer groups who purchase VSP insurance, and I think some of VSP's decisions are made in favor of increasing their market share amoung employers, at the expense of OD's profitability.

[klewless70503]

Thanks for the redirect, Jana!

I went back and re-read your original question. After three pages of posts and several months, I had gotten off track!

Yes, the frame change does change things at the office level. As many VSP patients do "buy up", you now take the 20% hit that wasn't there before. Your point about raising your markups to cover the hit does have the unintended side effect of punishing the private pay patients.

Do you work with EyeMed? It seems that VSP's changes are more like the EyeMed plan, where patients have a set frame allowance with a 20% discount from U&C above that allowance.

For us, it has meant regarding the frame more as a loss leader for these patients. But our VSP patients do tend to buy up on options too, and that is much better profit...doesn't require inventory or even our lab work. We just send it to the lab and they handle it.

And I think paw's comments above are right on the mark too; it seems like VSP made these changes to stay more competitive in the marketplace. Yes, it has had an impact on offices, but in the long run, it comes back to my question about "which plan(s) do you really want to accept?" If VSP has to make some changes to compete with the EyeMeds of the world, I can make some changes in my business too.

I'd be interested in an example of how you are actually losing money on the frame, because that DOES seem wrong to me.

[CME4SPECS]

To those of you that do not accept VSP:
How do you handle the situation when someone comes to you seeking your services. How do you get them to purchase from you?
Thanks, Terry Agin

[Judy Canty]

I do not accept any insurance plans, period. I offer those who ask about my participation a 25% discount on the eyeglass purchase and I offer to complete the paperwork to submit for their out of network benefit. I get a few refusals, but not enough to convince me that I want to participate.

[LGlover623]

Boy Jana, Sorry you have such a bad opinion of the Altair product. But I've learned that you can't please everyone. It could be that the product isn't right for your market or marketing strategy.

As far as the misconception that Altair was created just to put more money in VSP's pocket...Actually, since our product is put into offices at no cost, this requires a substantial investment up front on our part into your practice-that's money OUT of VSP/Altair's pocket. This allows you to keep your money in your practice to spend on other things until the product actually sells. Do you know how much capital is tied up in your current frame inventory?

Also, of course, no one wants to tell a patient that their frame has a lifetime warranty. That benefit was specifically created for the dispenser as reassurance of the durability and quality of our products. This allows you the opportunity to become the hero in those special cases where the patient cannot afford to replace a frame.

My intent on my posting was not to present a sales pitch, only to make some general observations on the industry and the managed care issue from an inside point of view. Sorry if I offended some, but I am a sales person after all! Of course, all will not agree with VSP and its practices including the new changes. The point is this...the industry is changing. If we don't all wake up and start to take some action, private practice is going to lose its patient base to the REAL threat-retailers and mass-merchandisers.

[Jana Lewis]

Sorry Lglover623....I hope that my post didn't come off as defensive. In my personal experience with Altair products they did not fair well in our office, I am going to be completely honest here......I couldn't give one away!

You may be correct that our industry is changing, alot of that has a direct link to insurers who try to force us into carrying their products or force us to give out discounts. I am sure that VSP does well with the Altair product in other areas, my "opinion" and experience is that it was not a well made product (compared to other frames ) The styles were boring and looked like anything else again...in my "opinion"

Funnything is, I once had a VSP Altair representative call me and ask me to think about carrying it again. I refused, and this person went BONKERS " I CAN'T BELIEVE THAT YOU ARE TURNING DOWN THIS EXCELLENT OPPORTUNITY" Ummm.. yes I am.

[fletch]

Also,


Altair frames are at no up front cost. I can buy the same quality frames for half the price. I always say that if a company can afford to give consignment they have to charge much more for the frame than it is worth! That is all companies!


That is not to say I hate VSP. It's not bad for third party!
Closeouts work great for VSP

[aaron]

I second Fletch,

You have to find creative ways to make up the differance on any 3rd party insurance. Many companies offer close-outs that they will even keep parts in stock for, at least for a couple of years. There are also companies that sell frames at less than what they are listed for so that you can make a better profit that way. Keep in mind that I am not talking about a 15$ frame listing at 80$. That is just plain wrong.

Jana,

When you really look at the "new" way of figuring out the VSP as opposed to the "old" way, you find it is about the same. Here is a prime example.

Frame "X" List 60$---------------puchased at 44$ +tax=48

Pt has WS 40 and retail 105
(our mark up is WS*2+40) Frame is 160$ - 105$ =55-11= 44$

"old" VSP way is WS 60 - 40= 20*2 + tax= about 44.

You bill VSP 40$ + tax and case fee and they pay 44$

Then add your disp fee ( ours is 85$ for single vision so I will use that)
For the sake of figuring it out lets assume the lenses are covered.

Pt.44$+VSP frame44$+disp fee85$ =173$.

You paid about 48$ for the frame so you net 125$. It was probably pretty easy since it was single vision and the differance between your normal frame price and what you net is about 20-25%.

Am I missing something or is that not terrible?

Don't get me wrong, I DO NOT like 3rd party insurance more that anyone else, but better VSP than somebody else. Oh yeah, and none of the chains can accept it as providers.:bbg:


ad