Vision Insurance Key Terms

Knowing vision insurance terminology helps you understand this valuable employee benefit

Vision insurance is only valuable if employees understand their benefit and take full advantage of the coverage it offers. Unfortunately, some people fail to fully utilize their vision insurance because they don't understand the terminology that is used to explain the benefit. It is important for all employees and employers to become familiar with the vision insurance terms found in written benefit materials.

Here are some of the vision insurance terms that often appear in employee benefit materials:

 

VSP

VSP means "vision service plan." VSP can refer to any type of vision coverage. However, VSP is also the name of an actual group of vision insurance companies.
Try: You can find a basic overview of vision insurance at DocShop.com.

Network

A vision insurance network is a group of eye care practitioners, laboratories and eye wear and/or contact lens manufacturers that are contracted with vision insurance plans. They have agreed to provide their services to plan members for reduced fees. They are called "in-network" providers.
Try: To read more about vision care networks visit the All About Vision website.

Covered member

A covered member is the individual whose employer provides the vision insurance coverage. A covered member is also sometimes called the primary subscriber, the insured or the plan enrollee. The covered member's dependents are called enrolled members.
Try: Vision insurance companies often provide a special online portal for their covered members. For example, check out the Superior Vision member portal.

Indemnity plan

Indemnity vision insurance coverage is a very flexible type of coverage. There is no defined provider network and members can visit any licensed eye care practitioner they wish. Indemnity vision coverage is often added to health or dental coverage.
Try: For more information about indemnity vision coverage, visit Cigna.com.

Co-pay

The co-payment or "co-pay" is a fixed amount that members must pay every time they receive services from a network provider of vision services. A co-pay is usually paid at the time you receive an eye exam or purchase glasses or contact lenses. Co-pays only apply when purchasing in-network services or materials.
Try: To see an example of how vision insurance co-pays are applied to in-network benefits, study the chart at Direct Health and Life Insurance of Nevada.

Discount vision plan

A discount vision plan provides an eye care plan at a low fixed rate in exchange for an annual premium or membership fee. The services received from eye care professionals will always be discounted. Any expenses that are not spelled out in the plan are not covered and must be paid out of pocket.
Try: Through the Careington Group Plans website, employers can get group discount plans with as few as three participating employees. Get more information on discount vision plans at EyeBenefits.

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