Pet Medical Insurance

by Malcolm Riordan

Often heard in veterinary clinics - "They ought to have medical insurance for pets!"  

They do!

In fact, the first pet medical insurance company started up in 1980.  Veterinary Pet Insurance (VPI) still exists today and despite rising competition, is writing increasing numbers of medical insurance policies for dogs and cats in North America.  While the idea of pet medical insurance is successful and well established, still only 3% of dogs are packing policies, and just 1% of cats have medical insurance premiums to pay! This has begun to increase over the last five years, as the need for coverage is trending upward.

That there are more and more policy covered pets is driven by a notable increase in fee totals generated at veterinary clinics. This, in turn, is felt to be the result of a surge of advancements in medical diagnostic technology. In particular, leaps in the availability and quality of imaging equipment—fiber optic endoscopes, ultrasound and digital x-rays—are leading to more, and earlier, diagnosis of problems. 

Concurrently, the significantly improved effectiveness of now being able to begin treatments earlier creates more situations where veterinarians can offer a brighter prognosis.  With more optimism on the table, more owners are electing treatment for their pets. Thus, veterinarians are not necessarily charging higher fees; rather they are being allowed to do more tests, procedures, and treatments. In any case, there are simply more reasonable opportunities than before where a veterinary bill can total up into the range of several thousand—even to fifteen or twenty thousand dollars if your pet is has been referred to a veterinary specialist.

To appreciate how pet medical insurance works, avoid direct comparisons to our human health insurance. Rather, think in terms of these pet policies as being more like property insurance.  The pet owner still would pay their bill at the time that medical/surgical services are performed. A pet owner with insurance could then submit their claim to the insurance company. The reimbursement is made directly to the policy holding pet owner.

Dogs and cats with medical insurance can go to any veterinarian(s) you choose. Just like you normally would, you and your veterinarian—with no influence whatsoever from the insurance company—consult, decide, and agree to treatment and its costs. Your veterinarian is tasked only with a signature on an insurance form that states your dog or cat's diagnosis, treatment, and the vet's standard fees. This amounts to little more than your veterinarian providing a signed receipt for you to submit with your claim.

Really, the main complexity involved is in the choosing and understanding of what is and is not covered in the insurance. Premiums can vary roughly from $10 - $90 per month. That is quite a range and is built on two basic factors: 

1) your pet's specifics:  
            Age (correlates to risks of injury and disease)
            Species (cat  or dog) and Breed (breed type can predict  increased risks for developing certain breed related medical problems);
            Location/zip code (this will indicate in a general way the type of environment and, more relevantly, the cost of living for your area, which of course relates to veterinary fees in your community)

2) and the specific policy features you choose: 
            the deductible amount, be it high, low or mid-range / the maximum yearly and pay-out cap limits that you choose (often $7K to $17K)
            the reimbursement level,  for example the choice of being reimbursed at a rate of 45% vs. 85% of the vet fees after deductible, and finally
            the wild card, exclusions! An example here is whether or not you choose to cover hereditary (breed) type problems should they emerge.  Another exclusion example is whether you choose to have pre-existing problems covered or not.

Pet owners who have obtained and maintained pet medical insurance seem, each and every one, to be fully satisfied with the insurance product. I say this from my own personal observations. Humans can have a penchant for complaining, but not one pet owner over the years has ever expressed dissatisfaction or dismay with their pet's policy performance. More objectively, the national Better Business Bureau gives very high ratings to the top four pet medical insurance companies VPI Pet Insurance, Pets Best, Purina Care, Trupanion Pet Insurance.The few customer complaints from among those top four companies tend to be disputes over the contract language— i.e. the fine print.

Pet insurance can be a good option for the pet owners that realize that they cannot pay for unplanned veterinary care from their discretionary income or savings. If they can afford to commit to paying the monthly premiums, they are assured that, come the day of reckoning, they will be able to say "Let's do whatever it takes for my best friend here."

Woods Rafter Cat image on banner by Malcolm Riordan.