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With the sputtering economy hitting small businesses particularly hard and health care costs eating up an ever-larger portion of the benefits pie, it would be logical to assume that other benefits, including vision, might end up tossed aside; However statistics show that the number of employers, even small companies, providing vision benefits has been increasing over the last several years, especially during tough economic times.

According to the Society for Human Resource Management's (SHRM) 2002 benefits survey, the percentage of employers offering vision insurance has increased from 60% in 1998 to 73% last year. The biggest jump came between 2000 and 2001, when the number leapt from 63% to 72%. Between 2000 and 2001, the percentage of businesses with one to 99 employees providing vision insurance increased from 54% to 66%. However, that percentage only jumped one point in 2002.

"We have seen increases in the number of proposals and the number of clients," says Wayne Muller, senior vice president of marketing for Superior Vision Services. "You would expect when employers are taking money out of their own pocket to pay for benefits, there would be a lack of interest. You would think they would be less likely to provide more benefits." However, Muller and his counterparts at other vision carriers report strong sales to small employers.

Vision executives indicate that more small employers may be investing in vision benefits because of the soft economy rather than in spite of it. With health plan premiums and prescription drug costs soaring, they say, vision plans are a relatively inexpensive benefit with high psychological value.

"Small employers have the same challenges in recruiting and retention [as larger plans], and vision care helps," says Kate Renwick-Espinosa, senior vice president of marketing for VSP. "The employer wants something that all employees can take advantage of and find valuable."

Advantages

Vision Service Plan (VSP), for example, has put together vision packages that include administrative services for the swamped benefits manager, such as simpler employee communications and online features that would allow quick membership updates.

"With small employers, we know benefits managers are busy and being asked to do more, so we developed services and resources that make it easy to administer the plan," says Renwick-Espinosa.

Usually, though, vision providers make available to 10-employee groups the same plans that the 5,000-employee groups buy. It is simply a matter of co-pays and frequency of coverage.

While Spectera plan expenses depend on geography and access, most customers opt for the 12-24-10 plans, which provides coverage for eye exams and lenses every 12 months and frames every 24 months, with$10 co-pay on exams. Smaller groups might have an array of choices, but larger employers tend to demand more customization.

Meanwhile, the plans at VSP are relatively inexpensive. The most common benefit plan selected by employers costs $7 per worker per month and provides an eye exam and lenses every 12 months and frames every 24, with a $10 co-pay for exams and $25 co-pay for materials. VSP also offers other programs that are less expensive but provide less coverage. The Exam Plus plan, for instance, is about $5 cheaper per employee and covers eye exams, but only offer discounts on lenses and frames.

Disadvantages

There are not many disadvantages of having vision care besides the items, which are not covered by the plan, and can end up costing the employees in situations where they need to have those treatments done to their eyes.

These treatments include:

Ø Orthoptics or vision training, subnormal vision aids or non-prescription lenses.

Ø Coated lenses, no-line bifocal (blended type) lenses or oversized lenses exceeding the allowable amount under the schedule of allowances.

Ø Replacement or repair of lost or broken lenses or frames except at normal intervals.

Ø Any eye examination required by an employer as a conditional of employment.

Ø Medical or surgical treatment of the eyes

Ø Contact lenses, except as specifically provided. Conditions covered by workers compensation law.

Benefit to employees

Enables employees’ flexible coverage’s at competitive prices, employees’ benefit from access to routine vision exams and corrective eyewear. Routine eye exams provide early detection of eye diseases such as glaucoma or systemic conditions such as diabetes. Being proactive about diagnosis and early treatment helps keep medical costs down. Employees and their families can choose out of network providers and receive benefits up to the maximum allowance amount schedule.

Cost to employees

No major cost to employees, there expenses are only the chosen deductible’s usually $0, $10, or $25, and any amount above the allowable amount for eyewear. The monthly fees are not too high; they range from $7 and up.

Benefits and Costs to Employers

Employers receive many benefits from offering Vision coverage. They can use vision plans as a tool to recruit better suitable candidate for employment. Their employees feel the employer care about them, creating a psychological value. On the cost side, most plans require that the employer’s contribution must equal at least 25% of the premium. The minimum participation requirement is the greater of 10 enrolled employees or 75% enrollment of all eligible employees.

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