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Board approves VSP premier plan premium increase; basic and computer vision plans unchanged
Summary
Aon recommended no change to VSP basic or computer vision premiums but a 4.3% premium increase for the premier vision plan (passed on to member buy‑ups, about a 6–6.7% member contribution increase); the board approved the actuary's recommendation.
The Health Service Board voted to approve Aon's recommended 2020 Vision Service Plan (VSP) renewal: no change to the basic or computer vision plan premiums and a targeted premium increase applied only to the premier plan.
Tom Ricks of Aon said the VSP five‑year contract (effective Jan. 1, 2017) included a contingency that allows up to a 2% aggregate premium increase if the paid loss ratio exceeds 100%. He reported the premier plan's paid loss ratio exceeded expectations and recommended a 2% aggregate increase be passed entirely to the premier plan, creating a 4.3% premium increase for that buy‑up product. Ricks noted the premier plan had a 41% increase in enrollment from 2018 to 2019, which could help normalize utilization over time.
Under the recommendation, basic VSP premiums would remain unchanged and the premium change for the premier plan would translate to a modest member contribution increase (Aon presented example dollar movement from $13.31 to $13.88). The board moved to accept Aon's recommendation and approved the renewal as presented.
Aon and staff said they will provide additional utilization detail on request (for example, whether excess loss clustered in exams, lenses, frames or contacts) to help the board's ongoing oversight of buy‑up product design and member impact.
