VSP Expands Costco Out-of-Network Pilot Program to Additional Employers
| January 28, 2011 12:27 AM |
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RANCHO CORDOVA, Calif.—VSP Global’s test of using Costco Wholesale’s optical departments as out-of-network managed vision providers expanded to nine VSP clients as of the first of this year, with one more set to join the program on June 1.
The Costco test kicked off July 1, 2010, with Trader Joe’s, a California-based mass merchant operating more than 350 stores. On Jan. 1, 2011, eight additional employers joined VSP’s test program; a 10th company joins the test on June 1. Each client signed a contract with VSP for at least two years, a VSP spokesperson told VMail.
Under this pilot program, employees of those 10 companies can use their VSP benefits at a Costco Optical vision center on an out-of-network basis. Costco can verify eligibility and submit claims to VSP electronically for these VSP members only. (Normally, an out-of-network provider submits a paper claim to VSP through assignment of benefits on behalf on the member, the spokesperson said, noting, “[VSP has] no other out-of-network deals similar to Costco.”)
The VSP spokesperson added, “It is important to note, however, that we continue to have a richer benefit for our members who visit a VSP provider, and we remain committed to highlighting the benefits and value of seeing one of our 27,000 network doctors.” He stressed that VSP “remains committed to private practice.”
Asked about the thinking behind the Costco test, Rob Lynch, VSP Global’s president and chief executive officer, told VMail, “The industry is changing. Clients are increasingly demanding more choice for their employees, including retail alternatives. And, more clients are concerned that their employees won’t have sufficient choice if they contract with VSP.”
Lynch added, “The Costco pilot has proven successful, enabling us to win and retain 500,000 patients, the vast majority of which are choosing private practice. This shows that we can satisfy the client’s need for choice while remaining committed to private practice and maintaining or increasing patient flow into our panel doctors’ offices.”