Guest Author - Rhonda Cliett
If you wear glasses or contact lenses you may be tempted to purchase a vision plan through your employer. Unfortunately, the decision to purchase a vision plan is not as easy as the decision to purchase a health insurance plan. Many of the plans are actually discount plans and the covered benefits are rather limited and the savings are often hard to determine. If you have the option to purchase a vision plan through your employer, here are some tips to help you determine the potential savings.
First, you need to consider your past needs and use this as a guideline. For instance, if you or a family member currently wear glasses or contact lenses then you can reasonably estimate that you will require an annual exam. If you are wearing contact lenses then you will require a yearly supply of lenses. If you are wearing glasses, then you may be able to get by a year or two before having to purchase a new pair.
Second, look at the benefits offered by the plan. How often do they cover an eye exam? Is it annually? Or is it every other year? What type of coverage is available for contact lenses and glasses? Is it a discounted amount or does it have a maximum allowed limit?
Third, look at the cost of the plan. Is there an annual premium? Are there copays? Or is it strictly a discount plan?
While most vision plans are offered only through employers, one of the vision plans that I researched for this article actually offers an individual plan. The cost is $275 a year and the premium must be paid annually (no monthly premium payments allowed). Additional co-payments are also required. Even with the cost of the plan revealed, it is still difficult to determine potential savings. The reason for this is that for most of the covered items the plan offers a percentage savings and a maximum allowed. For instance, contacts and a contact lens fitting are covered benefits every 12 months with a maximum benefit of $120. If you know the cost of the fitting and the cost of the lenses then you will be able to determine your savings, otherwise it is rather inconclusive.
In order to help you research your own plan, I am going to create a possible scenario and see how it measures up to the individual plan mentioned above.
Example: Let’s say Susie is considering a vision plan that costs $275 a year. Susie currently wears contact lenses and requires an annual eye exam. Susie’s actual costs from last year were:
Cost of Exam: $100.00
Cost of Contact Lens Fitting: $50.00
Cost of Yearly Supply of Contact Lenses: $100.00
TOTAL COSTS $250.00
Considering that the cost of the plan is $275, it is apparent that Susie will be better off paying for the expenses out-of-pocket and foregoing the vision plan.
Example 2: Let’s say Karen is considering the same vision plan that costs $275 a year. Karen currently wears single vision glasses and requires an annual eye exam. Karen usually purchases a new pair of glasses each year. Her actual costs from last year were:
Cost of Exam: $100.00
Cost of Glasses: $150.00
TOTAL COSTS $250.00
Once again, considering that the cost of the plan is $275, Karen will be better off paying for the expenses out-of-pocket and foregoing the vision plan.
The amounts listed in these examples are fictional. The actual costs of contact lenses and glasses varies significantly depending on the type of lenses and glasses that you purchase. For instance, a pair of progressive glasses are going to cost much more than single vision glasses.
Another important consideration regarding vision plans is whether or not you must change doctors. If your current ophthalmologist or optometrist does not participate in the vision plan then you will be required to change doctors. Also remember that if you have a visit that is related to a medical condition, your regular health insurance will cover.
Have a question about vision plans? If so, post your question in the Home Finance forum today.
