VSP Vision Care
VSP was set up in the USA by a group of optometrists in 1955 and today has 75m members worldwide. The not for profit organisation established in the UK in 2013 and is now expanding its operation in the UK and Ireland through financial advisers.
VSP Vision Care is a system for employers to provide eyecare benefits for their employees. As well as being a valuable employee benefit, it also helps employers meet duty of care obligations and provides a valuable return on investment (ROI). VSP says a typical ROI is 70%). Benefits can include savings such as less time off work, greater productivity and fewer work accidents.
The service begins with a full annual eye test (rather than a quick High Street or VDU user test). This exam can highlight a number of health issues not directly eye related, such as diabetes. Clients are reminded each year by VSP to have an eye exam and its website includes a list of relevant information on eye and health care.
VSP pays for the eye test and any subsequent spectacles or contact lenses, up to the plan’s maximum benefit, which is set by the employer. There is no excess or co-payment and the employee benefits from a 25% buying power increase as the scheme gives employers a 20% discount on eye exams, frames and lenses.
Most (96% VSP says) employees will usually use an optometrist that is part of the VSP network but can choose another practitioner, when they will get a set allowance to use against the actual cost. However non-network practitioners mean the employer will not enjoy any discounts and the employee will have to pay the practitioner upfront and must claim their benefit within six months. If a VSP provider is chosen, the employee only pays for any benefits above their benefit entitlement.
A typical cost is £2.50 per employee per month for 24 months, with a benefit limit of £100. A limit of £400 would cost less than £10 a month. VSP claims a 99% retention rate in the USA. The plan is aimed at groups of 50 or more, with schemes for 500 or more particularly attractive. Commission is negotiable up to 10% initial and renewal. As there is no insurance element, no IPT is payable.
Comment: Many employers will cover eye health through a cash plan, with surgery covered by PMI. They also have a statutory duty to provide regular testing in certain situations e.g. for VDU users.
So why go beyond that? VSP argues that the eye can be a gateway to other health issues (e.g. spotting diabetes early) and the proof of the pudding is a high ROI, very high retention and a valued employee benefit. For intermediaries, this scheme is new yet proven, low cost and can even generate commission.
It adds up to what should be a very simple but attractive proposition that will be an add-on to any other cover an employee buys.
Plus points: Meets employers’ and employees’ real needs; 20% cost savings; Thorough eye exam can identify other health issues; High retention rate; Good ROI; Commission available.
Not so plus points: Quite new to the UK; Some overlap with existing employee benefits; VSP is not yet well known in the UK (although it is in the USA and it also manufactures glasses for big brands globally).
Website: http://www.vsp-uk.co.uk.
Rating (max 10): Innovation: 9. Overall: 9. Platinum
Tags: VSP; Other