Comer Seeks Information from DOJ on Vision Care Market Consolidation, Resulting in Higher Prices and Fewer Choices for Americans

WASHINGTON—House Committee on Oversight and Accountability Chairman James Comer (R-Ky.) is continuing the Committee’s investigation into how consolidation in vision care markets is affecting consumers by driving up costs and limiting choices. In a letter to Attorney General Merrick Garland, Chairman Comer requests a briefing and documents to evaluate the impact of the consolidation of vision insurance plans and their vertical integration with manufacturers and retailers on patients.

“The Committee on Oversight and Accountability is continuing its oversight of the impact consolidation in vision care markets has had on consumers. Consolidation in the vision insurance market raises concerns about the potential for increased costs to patients and fewer choices. We request a staff-level briefing and certain documents and information related to the Department of Justice’s (DOJ) work to ensure consolidation in the vision care market does not detrimentally impact patients,” wrote Chairman Comer.

According to reports, two companies control 85 percent of the market share for stand-alone vision insurance plans. In 42 states, one company holds at least a plurality of the market, and in 28 states, a single company controls more than 75 percent of the market. This extensive consolidation raises serious concerns about its impact on consumers. Vision Benefit Managers (VBMs) own, operate, or affiliate with eyeglass and lens manufacturers, laboratories, and retail locations that employ eye care providers. Through these ownership and affiliation agreements, VBMs have vertically integrated the supply chain for vision care. This vertical integration allows VBMs to offer favorable copays to steer patients to their own stores while simultaneously charging plan sponsors higher rates. In August 2023, Chairman Comer launched a probe into the Federal Trade Commission’s (FTC) regulation of the vision care market.

“This type of consolidation and anticompetitive practices are similar to those found by the Committee in its investigation into Pharmacy Benefit Managers (PBMs). The Committee identified several examples of PBMs utilizing their position as middlemen and vertical integration to steer patients to entities they own, drive competitors out of business, increase costs for patients, and utilize market opacity to prevent oversight of their actions. The Committee is concerned that these same practices are being used by VBMs to the detriment of patients,” continued Chairman Comer.

Read the letter to Attorney General Garland here.