Attachment B:
From:Barbara Knapp <>
Sent:Wednesday, May 20, 2015 1:28 PM
To:Stephens,Eugene
Cc:Larry Opperman
Subject:HAC/IUC/VSP
Good afternoon Gene,
As you requested, I am highlighting for you the differences between the VSP/IUC contract and the
IUC/HAC/VSP contract.
Rating – from a rating standpoint currently IUC member groups are rated with an 11% retention (admin
amount) plus any applicable state and federal premium taxes based on the plan design the individual
school chooses. Each school has a contract with VSP directly and a VSP representative to work
with. This applies to groups with 1,000 or more eligible employees in a voluntary environment and 500
or more eligible employees in a non-voluntary environment.
Under the IUC/HAC/VSP arrangement – IUC member groups are rated with a retention (admin
amount) based on the aggregate VSP revenue within HAC. Currently that retention rate is 10% on fully
insured and 11% on self-insured business. The admin percentage goes down as the revenue amount
grows within the HAC book of business. Again, all applicable state and federal premium taxes will be
added. This applies to ALL group sizes and not limited to just groups over 500 or 1,000 lives. The next level of admin fee percentage drops to 9% once HAC’s aggregate premium increases. My estimation is that this number may be achieved within the next 12 months.
All current VSP/IUC groups will be eligible for the HAC fee at the individual group’s next renewal. All
new IUC/VSP groups will be eligible for the HAC retention upon implementation. It is important that
groups identify themselves as an IUC member when requesting a proposal or putting their vision plan
out to bid so the plan can be rated appropriately. If that information is not provided, the group may not
qualify for the HAC rating.
Currently IUC groups have contracts directly with VSP and the plans are based on the group’s specific
needs and plan requirements. Each group has their own implementation dates and renewal dates. This
remains the same under the HAC contract. Each group will still maintain direct contact with VSP and be serviced by one of VSP’s account executives. The benefit to IUC members really is gaining the ability to have a slightly lower admin fee and to be able to use the HAC RFP and evaluation process.
Please let me know if this gives you what you were looking for or if you have any additional questions.
Barbara Knapp Õ¿Õ | regional vice president
VSP | 3400 Morse Crossing, Columbus, OH 43219
main 800.462.7009 | direct 614.478-7115 |
cell 614.746.4600 | fax 916.463.9002 |