Providers turning to partnerships to cap costs

The rising costs of vision and dental plans have providers looking for innovative ways to keep a lid on costs – and partnerships are one of the new avenues many are choosing

The rising costs of vision and dental plans have providers looking for innovative ways to keep a lid on costs – and partnerships are one of the new avenues many are choosing.

John Salmond, vice president of sales and marketing for Group Medical Services (GMS), acknowledges that the costs associated with health care coverages like vision care and dental have been constantly rising – and that has meant plan sponsors have had to place a ceiling on benefits for their members.

To counter that, they’re increasingly using service and product providers that offer members as much as 25% off on any and everything from prescription eyewear to emergency dental implants.

“Employers are capping the benefits to keep them affordable,” says Salmond. “So what this allows the customer to do is to extend that dollar 25 cents more (depending on the discount offered by the partner) than it did yesterday.”

The initiative is many ways mirrors the medical networks that characterized the pre-Affordable Health Care United States. They were largely seen as a way to keep cost down by encouraging the insured to use doctors and other health services within a prescribed network.

That model is relatively new to Canada. But it’s catching on.

“Doing things differently is the way we’ve always done our business,” says Stephen McIntosh, president of the Factory Optical Group of Companies, a GMS-approved partner. “Finding new and innovative ways to provide more value to our customers through this partnership with GMS is just one example.”
 
 

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