Vision Service Plan History
California Vision Plan
CVS began in 1955. It was pre-paid vision care insurance It was started by a small group of Optometrists in Oakland who were members of the Alameda and Contra Costa Optometric Society. It was a new concept at the time.
CVS was in competition with a Group Vision Plan, which offered a fixed fee, which was less than the average fees by private practicing Optometrists. Its main sales representative was Buzz Thal, who had his own practice in Berkeley. CVS was more successful, and was sponsored by the COA state association, so GVP was terminated.
Soon after CVS began, there was a Conference at the University of Santa Clara to discuss vision care for union members. It was organized by the San Mateo County Optometric Society and the Santa Clara County Optometric Society. I was on the committee and attended the meeting. One speaker was my patient Carl Cohenour who was Business Agent of the Retail Clerks Union in San Mateo. Another speaker was Charles Garoni, who was the business agent of the Floor Covering Union., who later went to work for CVS. After this meeting Mr Rice became the director of CVS.
1965 it contracted with the Westen Conference of Teamsters, and lost that contract in 1967, then it hired John O’Donnell,, who became CVS president in 1968. That year the American Optometric Association encouraged VSP plans be established by state Associations.
1969 CVS contracted with the CA Teachers Association and its school districts. Then CVS hired Roger Valine, who later became president. 1970 CVS moved to the Teichert building in Sacramento, where it shared use of a IBM 360 Model 25 computer.
1972 CVS opened an optical laboratory in Rancho Cordova.
1974 CVS took over management of plans in Hawaii and Nevada. Two years later CVS led a movement to form a national network of groups. It change its name to Vision Service Plan (VSP).
1976 VSP took over Oregon VSP, and signed its first HMO contract.
In 1984 It had 386 employees and 123 million gross revenue.
1988 it had 668 employees and226 million gross revenue.
1990 865 employees and 348 million gross revenue.
1993 it had 537 million gross revenue,, 980 new groups.
VSP was in 50 states, covered 13.5 million people, had 22,000 member doctor locations of optometrists and ophthalmologists.
History documents that VSP that is so successful today had a humble start by a small group of visionary optometrists in Oakland, CA.