Vision plan savings serve as eye-opener for employers

Proactive vision care has been linked to early detection of chronic diseases such as diabetes, high blood pressure and high cholesterol. However, a new study from HCMS Group finds that stand-alone vision benefits can equate to nearly $100,000 in health care cost savings for large employers over a four-year span.

The health information data analytics and clinical prevention services company combed through data from more 120,000 enrolled employees and spouses from six large commercial clients. It found that savings per employee and savings per 1,000 employees over the study’s four-year period amounted to a hefty nest egg for employers.

“This study really underscores the importance of including vision care in a benefit strategy because only one in ten employees actually get regular preventive screenings whereas six in ten get an eye exam with VSP,” says VSP Vision Care President Jim McGrann. “That’s six times the opportunity for the detection of serious health conditions.”

The study analyzed data from HCMS and VSP Vision Care’s clients in the engineering, technology, retail, financial services and physical laborer space.

However, vision care has often been categorized as a voluntary benefit; the largest vision benefits and services company hopes these new findings will hit home for its more than 60 million members.

“The biggest challenge we face is that most people don’t understand the power of an eye exam and view it only as a mechanism for getting glasses,” McGrann says. “We work hard to change that perception, and this study helps us demonstrate that value when we’re able to talk with a client and show them hard numbers.”

For instance, comprehensive eye exams can detect early signs of diabetes 34% of the time, high blood pressure was uncovered at 39% of testing and high cholesterol was detected 62% of the time. Over the study’s four-year period, this equates to $3,120 in savings per employee for diabetes, $2,233 for high blood pressure and $1,360 for high cholesterol.

Previously, HCMS found that employers who offer vision benefits to their employees might be able to save as much as $5.8 billion in cost savings over a four year period. At the time, the study found that for every dollar invested in eye exams, employers will get a $1.45 return because of lower overall health care costs, improved productivity and lower turnover.

According to the HCMS study, those who had a chronic condition identified by an eye exam were 26.7% less likely to have an emergency room or hospital visit versus those who had their diseases detected by another health care professional.

If you’re a HR decision-maker, VSP’s McGrann says, you should pay attention to these figures. Over the study period, HCMS found that diabetes detection equaled about $28,111 in savings per 1,000 employees, $34,617 for high blood pressure and $33,728 for high cholesterol.

“The great thing about the study is it’s broken down into easily digestible figures,” says McGrann. “For example, an HR director for a company with 1,000 employees can save $96,456 over four years.”

With health care costs increasing by 89% in the past 10 years and the uncertain future of the ACA, McGrann states that “identifying benefits that provide a positive return on investment is more critical for companies than ever.”

“The HCMS study confirms that employees’ access to a stand-alone vision benefit provides a first line of defense in identifying and managing conditions that are straining our healthcare system and employers’ bottom lines,” McGrann says.