Pennywise and Pound-Foolish: Avoiding the Potential Costs of Cutting Benefits
Top action items for health plan leaders from our webinar on MA benefit trends
Executives from community-based Medicare Advantage health plans recently came together for a VSP® Vision Care webinar to discuss surprising trends in the MA marketplace. Notably, health plan executives are considering trimming supplemental benefits.
Why?
Regulatory pressures in the industry are leading some executives to consider eliminating these benefits in favor of evidence-based alternatives that address social determinants of health, such as housing subsidies.
However, given the high value MA enrollees placed on vision benefits as reported in the 2025 Medicare Vision Insights Report, plans considering rolling back vision care may be making a pennywise and pound-foolish decision.
Speaker Sally Kim, Advisory Board Managing Director of Health Plan Research and lead on the report, serves as an advisor to health plans nationwide. Kim gave a brief overview of why vision benefits are key to growing MA market share and boosting member satisfaction at this webinar hosted by the Association of Community-Affiliated Plans (ACAP).
Kim noted that based on data in the report, vision benefits are integral to maintaining and even expanding MA market share and increasing member satisfaction1. Following are a couple reasons why:
MA Enrollees Highly Value Vision Benefits
Enrollees know they need to be able to see to maintain their independence and enjoy time with loved ones. Therefore, they look for a plan that offers an annual eye exam, prescription lens allowance, and other features of comprehensive vision benefit designs.
Cutting these benefits in the short term could lead to a loss in market share. Beyond simply offering vision, MA plan executives should consider promoting these benefits to communicate that the plan values holistic health and enrollee quality of life.
MA Enrollees Use their Vision Benefits Routinely
Value doesn’t just come from savings. MA health plans derive great value and high returns on investment when enrollees use the benefits they’re offered—and enrollees use their vision benefits routinely. In fact, 9/10 MA enrollees use their vision benefits every year2. But vision benefits also have a unique ability to drive medical benefits use, and in doing so, support better member health outcomes.
Given that signs of more than 270 health conditions (including chronic ailments) can be diagnosed through an eye exam3, there is a tremendous opportunity to leverage eye care as a complement to health care.
Minimally, MA plans could dedicate resources to educate seniors about the importance of a comprehensive eye exam to help catch the signs of chronic conditions earlier. These are innovative ways of reaching enrollees who do not frequently visit their primary care provider.
The webinar was organized by ACAP and can be viewed online any time here.
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1 2025 Medicare Vision Insights Report
3 American Optometric Association. (December 2014.) Systemic Conditions with Ocular and Visual Manifestations.