EyeMed Vision Care Announces Updated Business Model

New Model Developed with Extensive Provider Input to Support Provider Practice Growth

MASON, Ohio--()--EyeMed Vision Care today announced its decision to implement an updated business model that will keep it simple for eye care professionals to do business with the company and improve exam reimbursements and profit opportunities for most network providers. The model was extensively tested with more than 150 independent provider locations and is designed to support provider practice growth, simplify administration and deliver a wide choice of products and labs.

“Our updated business model is the latest in a series of changes we have made to better prepare for the future,” said EyeMed President Liz DiGiandomenico. “With a new brand that better reflects our commitment to innovation, new products such as EyePreferSM, which empowers employees to make smarter decisions about their vision care, and now an updated business model, designed with input from independent providers, we are investing to deliver an improved experience to clients, members and providers.”

The Updated Model

The updated business model was designed over the past two years with input from more than 2,000 independent providers collected through focus groups, beta tests and a large pilot consisting of more than 150 different provider locations. Feedback from independent providers shaped critical aspects of the updated model, including administrative and economic enhancements, the product catalog and the decision to include an in-office finishing program.

Lynn Brown, manager at ProCare Vision Center and a participant in the beta and pilot programs, said that “the updated model really made our job easy and gave us more control over the technical details to ensure order accuracy. The transition was quick and easy, and we found the new lab network and product choice to be comparable to those offered by most other managed vision care plans.”

Features

The model includes a range of new features designed to support provider practice growth, simplify administration and deliver extensive lab and product choice. Key features include:

  • A national lab network featuring Essilor Laboratories of America, offering broad choice and a reputation for market access, quality and service. Specific Essilor Partner Labs and the Walman Optical Company family of businesses will be added by October 2013.
  • A single-vision in-office finishing program for participating providers.
  • Luxottica Lab Services (based in Dallas) will be introduced as a network lab choice.
  • Broad product choice from a range of top manufacturers including Essilor, Transitions, ZEISS, Shamir, Hoya, Signet Armorlite, including extensive progressive lens options.
  • Increased eye exam reimbursements for most independent network providers.
  • Consolidation of hundreds of client-specific fee schedules to about 15, which will result in paying more than $1 million dollars annually in increased participating provider reimbursements.
  • Combining our claims and order functions making it easy to serve EyeMed members, with a time-saving reconciliation feature for lab orders that are changed after the initial submission.
  • Member benefits remain the same and providers continue to supply the frame of their choice.

The updated model and new provider contract will be introduced to network providers beginning this month. EyeMed will contact providers by mail and email throughout the rest of the year, and into early 2014, to ensure a smooth transition. EyeMed is helping providers through the change with a number of resources including informational webcasts, a dedicated contracting hotline and a variety of training tools.

The EyeMed Lab Network

“We are pleased with the results of the pilot program, including the 97% lab satisfaction rating we received from providers, and we’re excited to expand our participating lab network nationwide, as part of the national roll out of the program. We are looking forward to continuing to provide exceptional service and quality products to EyeMed's provider network,” said Réal Goulet, President-Essilor Lab Group, Essilor Laboratories of America.

  • Participating providers will register for labs from among the 60 offered in EyeMed’s new national network. By the end of 2013, the lab network is expected to grow to more than 100 through the inclusion of specific Essilor Partner labs and the Walman Optical Company family of businesses including Walman, Soderberg, Harbor, Toledo and Rite-Style.
  • Network providers can register for as many labs within the EyeMed network as desired and can change labs within the network at any time.
  • In addition to claims, lab registration and lab/lens orders will be submitted using our expanded online claims system. It will now accommodate the ordering, tracking and reconciliation of order changes in addition to claims entry. Changes were designed to keep the system as simple and user-friendly as it has always been for network providers.

Webcast for Participating Providers

EyeMed network providers can join a July 1 evening webcast about the updated model. They can go to EyeMed’s Provider Focus (provider.eyemedvisioncare.com) to learn how to participate and to get additional information about the model.

About EyeMed

Mason, Ohio-based EyeMed Vision Care®, the fastest-growing vision benefits company in the U.S., is dedicated to helping members achieve better vision performance by giving them access to credentialed doctors and the most expansive network including independent providers and retailers LensCrafters®, Target Optical®, Sears OpticalSM and most Pearle Vision®. EyeMed’s client base is nearly 10,000 strong and covers more than 35 million Americans in funded vision plans. EyeMed is a proud sponsor of OneSightSM - a charitable organization dedicated to improving vision through outreach, research and education - where EyeMed associates share in OneSight’s passion to preserve eyesight around the world. Visit us at eyemed.com, follow us on Twitter @eyemedvision and find us on LinkedIn.

About Luxottica Group S.p.A.

Luxottica Group is a leader in premium, luxury and sports eyewear with approximately 7,000 optical and sun retail stores in North America, Asia-Pacific, China, South Africa, Latin America and Europe, and a strong, well-balanced brand portfolio. Proprietary brands include Ray-Ban, the world’s most famous sun eyewear brand, Oakley, Vogue Eyewear, Persol, Oliver Peoples, Alain Mikli, Arnette and REVO, while licensed brands include Giorgio Armani, Bulgari, Burberry, Chanel, Coach, Dolce & Gabbana, Donna Karan, Polo Ralph Lauren, Prada, Starck Eyes, Tiffany and Versace. In addition to a global wholesale network involving 130 different countries, the Group manages leading retail chains in major markets, including LensCrafters, Pearle Vision and ILORI in North America, OPSM and Laubman & Pank in Asia-Pacific, LensCrafters in China, GMO in Latin America and Sunglass Hut worldwide. The Group's products are designed and manufactured at its six manufacturing plants in Italy, two wholly owned plants in the People’s Republic of China, one plant in Brazil and one plant in the United States devoted to the production of sports eyewear. In 2012, Luxottica Group posted net sales of more than €7.0 billion. Additional information on the Group is available at www.luxottica.com

Safe Harbor Statement

Certain statements in this press release may constitute “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Such statements involve risks, uncertainties and other factors that could cause actual results to differ materially from those which are anticipated. Such risks and uncertainties include, but are not limited to, the ability to manage the effect of the current uncertain international economic outlook, the ability to successfully acquire new businesses and integrate their operations, the ability to predict future economic conditions and changes in consumer preferences, the ability to successfully introduce and market new products, the ability to maintain an efficient distribution network, the ability to achieve and manage growth, the ability to negotiate and maintain favorable license arrangements, the availability of correction alternatives to prescription eyeglasses, fluctuations in exchange rates, changes in local conditions, the ability to protect intellectual property, the ability to maintain relations with those hosting our stores, computer system problems, inventory-related risks, credit and insurance risks, changes to tax regimes as well as other, political, economic and technological factors and other risks and uncertainties described in Luxottica S.p.A’s filings with the Securities and Exchange Commission. These forward-looking statements are made as of the date hereof, and we do not assume any obligation to update them.

Contacts

EyeMed Vision Care
Nicholas Ludlum, 202-729-4116
Nicholas.Ludlum@Ogilvy.com

Contacts

EyeMed Vision Care
Nicholas Ludlum, 202-729-4116
Nicholas.Ludlum@Ogilvy.com