Comer Opens Probe into FTC Regulation of Vision Care Market

WASHINGTON—House Committee on Oversight and Accountability Chairman James Comer (R-Ky.) is today requesting information from the Federal Trade Commission (FTC) to ensure accountability of the FTC’s role in overseeing the vision care market. The vision insurance market is structured to place only a handful of companies in charge of the vast majority of vision insurance plans for Americans, raising concerns about effects on consumers, including potentially higher costs. In a letter to FTC Chair Lina Khan, Chairman Comer requests a staff-level briefing to understand the extent to which the FTC has worked to ensure that the vision care market serves the best interests of American consumers.

“According to recent reports, two companies control 85 percent of the market share of the stand-alone vision insurance plans. In fact, in 42 states one company, controls at least a plurality of the vision insurance plan market. In 28 states a single company controls more than 75 percent of the vision insurance plan market, raising serious concerns about the potential for increased costs to consumers,” Chairman Comer wrote.

The House Committee on Oversight and Accountability is conducting oversight of the FTC’s role in preventing unfair and harmful practices in the American marketplace. Vision insurance is offered by specialty insurance companies in the United States. The largest company, VSP Vision Care (VSP) covers over two-thirds of U.S. enrollees who have vision-only insurance plans.

“Concerns over consolidation in the vision insurance market are not limited to stand-alone vision care plans. One company, VSP Vision Care (VSP), provides vision insurance for 82 million Americans nationwide. […] Several vision insurers have also sought to vertically consolidate, creating their own brick-and-mortar retail stores providing favorable copays and pricing to steer consumers to their stores and away from their competitors. Additionally, many of these insurers own lens and frame manufacturers enabling them to mark up prices by as much as 1,000 percent,” Chairman Comer continued.

Read the letter to FTC Chair Khan here.