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Key takeaways:
- Employers are increasingly frustrated with traditional vision insurance plans.
- As health and benefits costs go up, many are looking to drop these plans.
- Offering prepaid vision plans as an alternative will help you stand out as a broker.
Benefits should meet two key conditions. They should come with an affordable price tag and deliver great value when employees are using them.
Many employers opt for vision plans with low monthly premiums without realizing their employees will have to cover surprise bills at the optometrist. As a broker, you can differentiate yourself by introducing the idea of value early on and recommending flexible vision benefits for Oklahoma businesses that are easier on employees’ pockets.
The Hidden Risks of Traditional Vision Insurance Plans
Traditional vision insurance puts forward premiums as low as possible to create appealing products. However, the lower the premiums, the less coverage employees get. This leaves them facing high out-of-pocket costs that make them question why they’re paying for the benefit in the first place.
Pricing Lacks Transparency
Reimbursements create a pricing structure that can feel confusing. New regulation calls for more transparency for health plans, but it doesn’t apply to vision plans, and insurers aren’t willing to give up on fine print and complicated reimbursement schedules.
Navigating Marketing Claims
Marketing is another problematic area, with insurers making claims designed to sell rather than inform. For instance, some vision plans claim to offer coverage for things that health plans usually cover. It sounds like employees are getting more value with these plans, but the reality is that it creates a complex situation for benefits coordination and often means employees are paying for unnecessary coverage.
Vertical Integration
Vertical integration is a growing trend in the vision insurance industry. It means insurers are working closely with labs and other providers, shaping their policies to guide patients toward specific choices.
The outcome is that employees find themselves with a limited range of choice when ordering eyewear from labs and are stuck paying high out-of-pocket costs from the labs their insurer prefers.
How Prepaid Vision Plans Solve These Pain Points
There’s a reason why more employers are opting for prepaid vision plans over traditional insurance options:
- Prepaid vision plans have a simple structure: fees are paid upfront, and savings are negotiated at local optometrists. Prices are easy to understand, and there are no surprise out-of-pocket costs.
- According to James Ashford, State Director at Vision Care Direct, “With our plans, we see employees save $200 to $300 at the optometrist when they need a new pair of glasses. It’s a lot more than what they would get with a traditional insurance reimbursement, and it’s a strong factor for improving employee satisfaction with the benefits offered.”
- Because employees get savings instead of reimbursements, submitting claims or coordinating coverage is not a complex process.
- There is no vertical integration. Local optometrists are free to recommend the best labs and materials, which means more choices and a better experience for the employees.
- Prepaid vision plans are flexible vision benefits for Oklahoma businesses. There are options designed for families with savings on pediatric eye exams and more advanced plans with additional savings on eyewear for those who need these extra benefits.
- You can recommend Section 125 prepaid plans that employees pay for with pre-tax contributions. This lowers their taxable income and shifts the cost from the employer to the employee without burdening them with an expensive plan.
You can also find flex plans that give employees access to a certain amount of savings every year. Employees are then free to use these savings where they want, regardless of networks. It’s a great option for businesses with multiple locations or remote workers who might not have access to the same local optometrists.
Broker Insights: What’s Driving the Switch Across Oklahoma
You need to keep up with the latest industry trends to run a successful brokerage business. Right now, employers are worried about rising health costs and increased regulations.
It’s becoming harder for HR teams to select benefits that create value without overspending, and perks outside of health insurance are likely to disappear. Benefits packages are either becoming less competitive or including more options that employees can pay for themselves.
Vision benefits don’t have to go away. Instead of giving up on eye health benefits, employers can maintain value with prepaid plans. As a broker, offering these plans is a differentiator, and it allows you to address the many pain points created by the traditional vision insurance industry while making savings accessible.
It’s Time to Offer Alternatives to Traditional Vision Insurance
Rising health costs are here to stay, and as customers review their benefits package for 2026, more will likely ditch traditional vision insurance in the months to come.
Stand out by offering a flexible alternative that creates great value with VCD plans. Our prepaid plans give employees access to savings at one of the largest networks of optometrists in Oklahoma. As a doctor-owned organization, we value fairness and transparency. Plus, our brokers get a transparent schedule with 10% commissions.
Find out more about becoming a VCD broker and offering our prepaid plans to your audience.
FAQ
What are the best vision plan alternatives to traditional insurance?
Prepaid vision plans are a great alternative to insurance products. These plans give you access to pre-negotiated savings, so you pay less at the optometrist.
Why are employers frustrated with traditional vision insurance?
Vision insurance plans are difficult to navigate and lack transparency. Many have surprise out-of-pocket costs, problematic marketing claims, and a limited choice of labs and materials.
How do prepaid vision plans help employers save?
Prepaid vision plans are Section 125 products, which means employees pay for them with pre-tax dollars. Although the cost shifts to the employees, these plans provide great value and improve satisfaction.
What should brokers watch out for when recommending vision insurance plans?
Watch out for the fine print and hidden fees. Premiums can seem low, but employees often face high out-of-pocket costs and a limited choice of labs and materials.
