When it comes to caring for their pets, owners want to make sure they are providing the best. Many of our clients may find veterinary care is out of their reach, and unexpected expenses can quickly add up.
In 2022, $136.8 billion was spent on pets in the U.S., with $35.9 billion going to veterinary expenses.1 The cost of pet care has been steadily rising over the years due to the pandemic, inflation, and business-related costs, such as staff wages and vendor fees.2 Additionally, the 2019 U.S. census reported 23 million households, or one in five, acquired a dog or cat.3
In North America, more than $62 billion is spent by pet owners each year in caring for their feline and canine companions.4 While the number seems impressive, the spending is not without the stress in budgeting and planning for financial burdens of veterinary care.
Pet insurance can provide peace of mind and financial protection for owners in the event their pets suffer a sudden illness or accident—and vet professionals the ability to deliver care to more patients.
Educating clients on pet insurance
The role of veterinary professionals in educating pet owners about the benefits of pet insurance is crucial. There are several factors to present clients when helping them decide on a plan, such as the type of coverage, budget, and payment options. Other important details include:
- Coverage type. Providers and plans offer different levels of pet insurance coverage. As a general rule, pet insurance covers unexpected illnesses and accidents, such as broken bones, cancer, and emergency surgeries. In addition to routine care, some plans cover vaccinations and annual check-ups.
- Exclusions. Most policies do not cover pre-existing conditions, which is why it is crucial to encourage policy enrollment during puppy and kitten exams to ensure your patients are adequately protected early on. Additionally, some pet insurance companies may exclude certain breeds or species from their offered coverage. There are also some elective medical procedures not covered by pet insurance policies, such as cosmetic surgery. However, some pre-exisiting conditions may still be covered after a waiting period, such as osteoarthritis, allergies, and ear infections.
- Premiums, deductibles, and co-pays. There is a wide range of premiums based on the type of coverage, the age and breed of the pet, geographical location, and the level of care. Deductibles and co-pays can also differ, and it is critical to educate pet owners on a policy that fits their budget and aligns with their pets’ lifestyle.
- Timeline. Waiting periods before the coverage comes into effect can vary per pet insurance company, and it is always advisable to choose a policy with a waiting period that fits your clients’ schedule.
Veterinary professionals should also be knowledgeable about pet insurance policies and how to submit claims based on the medical insurance provider. We can make more informed recommendations to our clients by understanding the different types of coverage available. Veterinary hospitals that know how to submit claims can also help clients in the reimbursement process. Further, we can ensure the highest quality of care for our clients by communicating with pet insurance companies on their behalf.
Making pet insurance work for you
Pet insurance allows owners to choose the best treatment options for their pets without having to worry about the cost of care. Some pet owners may believe pet insurance does not pay for itself, and unexpected veterinary care can cost between $800 and $1,500, depending on the pet’s prognosis, location, breed, age, and the level of care they are receiving.5 While pet insurance can be expensive, there are policies that are affordable for a wide range of budgets. There is an average premium of $49.51 per month for dogs and $28.48 per month for cats for pet insurance.6 Overall, it is a valuable investment for them.
On the other hand, there are also several benefits advocating for pet insurance can do for the practice. Client satisfaction and patient outcomes can be improved by increasing compliance with recommended treatments, hence helping you boost your revenue.
Conclusion
An owner can make informed decisions about their pet’s healthcare by understanding the different types of coverage available, factors to consider when choosing pet insurance, and how pet insurance can be a valuable investment in the long run. Pet insurance allows us to provide our patients with the best possible care without worrying about the financial burden that may discourage or limit owners. The uncomfortable conversation about finances can be made easier when pet insurance is available.
| What criteria do you use as a vet in selecting an insurance provider?
Erica Tramuta-Drobnis, VMD, MPH, CPH: “Ideally, pet insurance companies need to start paying the veterinarians upfront. In an emergency, especially, people make medical decisions based on finances, and even those with insurance cannot always afford despots or to cover a full bill even if they will be getting reimbursed in the future. Additionally, I consider accessibility. Having an insurance company that has someone available to talk 24/7. Emergencies often happen well after normal business hours.” How do you handle the issue of insurance with pet owners? Marty Becker, DVM: “While I don’t see it as our role to recommend a specific provider, I do 100 percent believe clients should have pet insurance for their pet. With the continuing advances in veterinary medicine, there is lots we can do to treat an injured or ill pet. However, many of today’s treatments can be expensive, and with pet insurance, owners do not have to worry about the cost and can focus on taking care of their pet.” Do you feel insurance impacts the quality of care/treatment you are able to offer patients? Jeff Mayo, DVM, DABVP, MANZCVS (Surgery): “Insurance makes it easier for the vet and the pet owner to provide better quality care and make sure the pet gets everything they need to maximize recovery.” Have you used a payment provider/patient financing system for insurance claims? Dr. Tramuta-Drobnis: “The only payment provider type systems I am familiar with are Care Credit and Scratchpay, but they don’t pertain to insurance. I suppose even people with insurance may need to utilize those services, though, to be able to cover the upfront costs. Then when they are reimbursed, they can pay their bills off with the insurance check.” Dr. Becker: “Typically, with financing solutions, the pet parent can pay for the treatment and then has a short period of time to reimburse the finance provider before incurring interest charges. This of course can get quite expensive if the bill is large and the pet parent needs an extended period to pay back the debt. If the pet parent has insurance, the insurance provider will cover a percentage of the cost, less any deductible; and if needed, the pet parent can use a financing solution to pay the deductible and their share. This amount will of course be significantly less than if they had financed the entire cost and likely be easier for them to reimburse the financing company ahead of any interest being charged.” |
Nicole LaForest, BSc, LVT, MPH, is a licensed veterinary technician and public health consultant residing in Seattle, Wash. Currently employed by Trupanion, LaForest supports her local veterinary hospitals by educating their teams on the importance of medical insurance for pets. She also works as a public health consultant, lending her expertise to a variety of topics for both animals and humans alike and authors articles for PetMD. She can be reached at nicolethevettech@yahoo.com.
References
- APPA. “Pet Industry Market Size, Trends & Ownership Statistics,” 2023. February 18. https://www.americanpetproducts.org/press_industrytrends.asp
- McReynolds, T. (2022, January 12). Inflation hitting veterinary practices. https://www.aaha.org/publications/newstat/articles/2022-01/inflation-hitting-veterinary-practices
- ASPCA. (2021, May 26). New ASPCA Survey: Vast Majority of Dogs and Cats Acquired During Pandemic Still in Their Homes. American Society for the Prevention of Cruelty to Animals . https://www.aspcapro.org/resource/new-aspca-survey-vast-majority-dogs-and-cats-acquired-during-pandemic-still-their-homes
- Trupanion. (2023, March 31). Why Trupanion. https://investors.trupanion.com/why-invest/default.aspx
- CNBC. “Are You Prepared for a Pet Emergency? Most Americans Are Not,” 2018. June 14. https://www.cnbc.com/2018/06/14/are-you-prepared-for-a-pet-emergency-most-americans-are-not.html.
- Pawlicy Advisor. “Average Pet Insurance Cost in 2022 by Breed, Age, & State,” 2022. January 18. https://www.pawlicy.com/blog/pet-insurance-cost/.
- North America Pet Insurance Market Size By Policy Coverage (Accident Only, Accident & Illness), By Animal (Cat, Dog), By Provider (Public, Private), Research Report, Country Outlook (U.S., Canada), Price Trends, Growth Prospects, Competitive Industry Share & Forecasts, 2021 – 2027. (2021, April 1). Graphical Research. https://www.graphicalresearch.com/industry-insights/1753/north-america-pet-insurance-market