PET INSURANCE: THE REAL STORY.


Every day I am asked about pet health insurance. Is it worth it? How much is it? Does it pay to get it, or is it just a sham? What does it cover? All very pertinent questions. Please understand that what you are about to read is my opinion and mine alone, based on my years of experience in private practice. Others certainly may differ with my opinion, and the world of pet insurance is changing all the time. I will try to keep you posted as new developments occur.

The world of veterinary medicine is changing rapidly and we are now able to offer pets nearly the same care that humans receive. But this care does come at a cost. And because euthanasia is an option in veterinary medicine, unfortunately some decisions regarding the care are based more on the economics than on what is best for a pet. This is the harsh reality of being a pet owner and a practicing veterinarian. So where does insurance fit in ?

Pet insurance has been around for nearly half a century in one form or another, mainly in Europe. Although less than 1% of pets in the US are insured, in some parts of the world this number reaches 25%. Americans have been much slower to accept third party payments for their pets. Some reasons for this are:

- The US has a human health care system that is much different than other parts of the world, so our point of reference is a bit different.

- Health care for pets is more expensive in the US, so the insurance costs relative to the coverage you receive is not perceived to be as much of a value as in other countries.

- I believe that as pet insurance became more readily available in the US, people were becoming more and more disenchanted with their own health insurers, so they sure were not going to trust similar companies to insure their pets.

With the development of expensive new technological and medical advances, we are all going to be deluged with advertising and information about pet insurance. There are many policies out there and it is impossible for even me to decipher what some of these policies say. Let me share a true story with you (the names are changed to protect the innocent):

I was working with insurance Company A who wanted to begin a new pet health insurance program. They registered one of their own pets with Company B, one of the companies that had been around for many years. After paying the premium, the Company A personnel received the policy and all its information, declarations, etc. Then there was an assignment; they pretended the dog had a particular illness and created a fake invoice for the diagnosis and treatment. Five employees from insurance Company A took the invoice and the policy information, and went off to try and determine how much they would be reimbursed for this medical problem. Can you guess the outcome? They came back with five different reimbursement amounts with dollars differing by as much as 40%! If insurance experts cannot decipher exactly what is covered, how can you and I?

So what information can I give you? First, what do I really think about pet insurance? I think it is a good idea. Again, the medical advances come with a price and if you want the best for your pet, insurance is a good investment. But you have to have realistic expectations. Pet insurance does not work like people insurance, and this is where most people become disenchanted. But don't get discouraged, because if you think about it our human health care system does not work all that well at times.

So how do most of these pet insurance policies work? Here's what you need to know:

- Most of the policies come with some sort of deductible, either per year or per medical event.

- Most have a co-payment, meaning the company and you each pay part of the bill.

- Most have a maximum they will pay for a particular incident, and you are responsible for the balance.

-In most cases, you have to pay the veterinarian in full, then submit the insurance papers for reimbursement (most reimburse within 30 days and often within 15 days).

This information is not meant to sound negative, just realistic. The insurance is still a good thing to have, but I'd like you to be sure you know what you are getting into.

Now here is where I will go out on a limb (again, this is only my opinion). Many policies have come and gone and many more will do the same. There are multiple policies on the market at any one time. In my experience, the best company out there is Veterinary Pet Insurance (VPI). They have been around now for nearly 20 years. They know what a hard business it is, what premiums should cost so they can be around for the next 20 years, and they know what the pet owner and the veterinarian's needs and wants are. They are a company that has weathered the test of time and unlike many other companies, they are not in it for the quick buck. VPI (www.petinsurance.com) is in it for the long term. They want to help your pet, provide a way to decrease euthanasia due to finances, and make an honest living doing it. I have seen too many other companies try to make a go of it for the wrong reasons and, in the long run, they have generally disappointed their clients

As I have no vested interest in VPI, I am simply giving you my opinion based on my experiences and those of my clients.

So my recommendations are the following:

- Insurance is not for everyone. Some think it is great, some think it is silly. I think it is a good investment.

- In my experience, Veterinary Pet Insurance (VPI) has been the most reputable company for the longest period of time.

- Have reasonable expectations. It is my impression that the insurance will usually cover between 50% and 75% of any particular incident.

- If you have one major medical incident with your pet throughout their lifetime, the policy will most likely pay for itself.

- Remember that, like all insurance, you want to have it, but you hope you don't have to use it. If you never get your money's worth, it means you never had a major crisis with your pet. That's good news.

I hope this helps shed some light on a very difficult and confusing subject. In future articles I hope to give some examples of real life events and what insurance would and would not have covered.

As always, I'm happy to help your pets….and their people, too.

Dr. Larry