New Study Finds Employers Offering Vision Benefits Save $4.5 Billion on Healthcare Expenditures
VSP Vision Care Study Shows 127% Return on Investment on Vision Care Benefit, Lowering Healthcare Costs for Employers Nationwide
RANCHO CORDOVA, Calif., April 5, 2011 /PRNewswire/ -- VSP® Vision Care, an industry leader in the delivery of eyecare and eyewear, released the findings of a new study showing $4.5 billion in savings for its clients – for profits, not-for-profits and government organizations – through the early detection of chronic diseases via eyecare and vision exams covered by VSP vision insurance.
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The study, conducted by Human Capital Management Services Group (HCMS), a national human capital consulting firm, found that for every $1 invested in VSP exam services – which include comprehensive, annual eye exams – during an employee's first year with the benefit, employers can expect an average two-year total return of $1.27 in long-term healthcare savings. These savings are a result of avoided medical costs and increased employee productivity.
"With healthcare costs spiraling out of control, these new findings showing $4.5 billion in savings clearly demonstrate the importance of stand alone eyecare benefits," said Rob Lynch, chief executive officer of VSP Global. "Preventive eye exams support overall wellness and are much more than a means to receive prescription eyewear."
The HCMS study further revealed that VSP clients experienced 7 percent less absenteeism, 4 percent less employee turnover and savings on insurance and workers' compensation costs. Early detection of chronic diseases like diabetes and hypertension also increased the likelihood employees would be proactive with their healthcare and more likely to see a medical doctor to receive follow-up care.
"Individuals who have a VSP vision plan are three times more likely to get an annual eye exam than a routine preventive physical," said Susan Egbert, director of eye health management, VSP Vision Care. "This means VSP providers are more likely to detect the first signs of common chronic diseases like diabetes and hypertension."
VSP Vision Care is the only vision plan to facilitate nationwide, HIPAA-compliant data collection and exchange through the VSP Eye Health Management Program® resulting in these cost savings and health benefits. To view this study, visit vspeffect.com.
About the study
Human Capital Management Services Group (HCMS), a national health care and workplace productivity consulting firm, matched medical condition data for over 200,000 members covered by VSP Vision Care, spanning two years to medical and pharmacy data obtained from the clients' medical and drug carriers. HCMS compared chronic patients who were first identified by VSP Vision Care against those who entered the health care system via traditional means. The study included six large commercial clients with a total of 212,000 members.
With a research reference database of more than 2.2 million employees and their families who are actively enrolled in a health plan, HCMS maintains comprehensive data catalogue containing medical and prescription costs, absenteeism, disability, workers' compensation, and productivity costs. The study identified more than 9,000 VSP members who were first identified with early signs of diabetes, hypertension and high cholesterol by a VSP doctor.
About VSP Global
VSP Global(SM) includes VSP Vision Care, the largest not-for-profit vision benefits and services company in the United States with 56 million members; Marchon® Eyewear Inc., one of the world's largest manufacturers, designers and distributors of quality fashion and technologically-advanced eyewear and sunwear; Eyefinity® which offer innovative solutions and the premier management software and technology to improve overall practice management and patient experience; VSP Optics Group, industry leaders in new technologies, production processes, service and logistics.
Since 1997, VSP has provided more than 619,400 low-income, uninsured children with free eyecare. Through relationships including those with the American Diabetes Association and Prevent Blindness America, VSP promotes the importance of annual eye exams for maintaining eye health and overall wellness.
About HCMS
HCMS Group is the only combined health IT and clinical services company that uses custom data analytics to help businesses reduce their health benefit costs, and also support those employees with the greatest health risks. HCMS helps companies control runaway health benefit costs that can threaten business survival by identifying ways that companies can get the incentives right between employers and workers. HCMS helps companies improve business performance and create great places to work, where employees feel empowered, valued and rewarded.
SOURCE VSP Vision Care
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