Modern Eye’s Approach to Vision Insurance

When Modern Eye was established, the intention was to create a practice independent from the prevailing system, as Eckhardt explained. But what she found was a landscape heavily tilted in favor of major corporations and insurance providers.

“Insurance reimbursement rates have, well, pretty much stayed the same for the last 20 years,” Eckhardt noted. “Meanwhile, the costs of living and operating a practice have surged significantly.”

The American Optometric Association indicates that two major vision insurance players, VSP and EyeMed, dominate around 85% of the national market, encompassing labs and lens manufacturers.

“They pretty much control everything,” Eckhardt said. “For small business owners, this creates challenges. We often feel pressured from all sides.”

In August, she introduced a direct membership program aimed at offering patients and small businesses a competitive alternative to private insurance. This model seeks to simplify costs and process while providing comparable benefits.

For a monthly fee, participants can access comprehensive eye exams, discounts on eyewear, contact lens fittings, and various eye-related services.

Eckhardt ensures that all products are sourced from independent lines, which helps keep expenses reasonable for her practice.

“We can provide a broader range of lenses and real savings for patients without the constraints typical of standard insurance plans,” she said. “It’s beneficial for everyone involved—patients, our practice, and the Dayton community.”

More independent eye doctors are exploring tailored vision plans, as noted by Direct OD, which offers tools for practices to develop their own programs.

Such “boutique” plans, according to Direct OD, lessen dependence on reimbursement cuts from larger companies, giving doctors greater financial control and creating a revenue stream that benefits their practices and local communities. Patients often enjoy more personalized services and lower co-pays for exams, glasses, and contact lenses.

Eckhardt observed that, within the first three months of launching her membership plan, the financial benefits enabled her to hire part-time staff.

“It helps retain funds in the Dayton economy,” she noted.

Since its launch, Eckhardt’s membership program has been well-received by self-employed individuals, those without insurance, and Medicare recipients.

Additionally, she introduced business memberships priced at either $15 or $25 per month, allowing employers to cover their employees’ costs or offer them an affordable option.