7/31/13. As many of you are aware, EyeMed just completed a beta test for moving their glasses over to a lab-based model similar to VSP. In the near future, all EyeMed glasses will have to be made at an EyeMed lab. The beta test started last spring with 150 clinics nationwide, three of them our clients. In June, EyeMed reported the beta test was successful and announced their intent to adopt the model for all EyeMed providers, the transition to be completed by the end of 2013.
Indeed, EyeMed is moving forward. Some of our clients will be moving to the new model next week. We called EyeMed for more information on when other offices can expect to be moved and learned that clinics are being assigned a move date based on their tax ID. One month prior to their expected move, EyeMed is contacting doctors through both email and letter, hopefully enough time to give offices the opportunity to review their new contract, sign up with a new lab, train on the new ordering software, and time to learn more about what lens manufacturers and products they will be able to use. The beta test started with Essilor labs, but EyeMed recently announced that they were adding Walman Optical and the Luxottica Lab based in Dallas. Providers will still provide patient frames.
We’re hearing some common concerns from doctors and opticians, one being concern that some of their preferred products may now be considered off-menu. The biggest issue, however, has to be loss of revenue. Let’s face it—nobody is an EyeMed provider because they pay so well. (Here’s a sad tidbit: I pay more for a pedicure at the mall than some of our doctors make for a comprehensive eye exam. What’s wrong with that picture?) The only thing that made EyeMed at least tolerable was doctors had a chance to make up poor professional services with optical sales. Now EyeMed is taking that away and wrapping it up in a marketing package labeled “improved” and “innovative.”
EyeMed is promising to increase provider fees under the new structure. I guess time will tell what EyeMed considers an adequate increase, considering we see $40 exam allowances in almost every state. The rep we talked to at EyeMed last week did say that they are planning to gradually phase out plans with $40 reimbursements, but he skirted the question when asked what we could expect to see. I have since seen one EyeMed publication that proposed minimum exam allowances of $50 for new policies they write. However, existing policies will not change, at least not until the employers’ contracts come up for renewal.
The process is too new to be able to make a valid assessment about how EyeMed’s change will affect doctors’ bottom line. Doctors no longer have to bear the cost of goods for lenses, so depending on their contract and what products they up-sale, we can only wait to see if doctor reimbursements are high enough to make remaining an EyeMed provider profitable.
Link to EyeMed’s provider manual detailing contract information: http://www.eyemedrecert.com/Contract/images/Collateral_Addendum_Manual.pdf
