The Insurance Information Institute Web site says Americans spend $40 billion a year on 150 million pets they regard as “valued members of the family.” Pet health policies are similar to human health insurance policies and include annual premiums, deductibles, co-pays and caps. Their cost is based on the animal’s age, health profile and level of care owners pay for. The older the animal the higher the premium. There are exclusions for pre-existing conditions and some deny coverage to breeds susceptible to hereditary conditions such as hip dysplasia.
Policies are available for dogs, cats, rabbits, ferrets, exotic birds, reptiles, potbelly pigs and sundry rodents. Pets can be insured at six to eight weeks of age. Some companies impose age limits, others don’t, and additional pets are covered at a reduced rate after the first pet is enrolled. There are three types of pet health coverage.
Traditional: Plans are similar to human health insurance policies. Companies are licensed in the states where they do business and subject to the state’s rules and regulations. There are three levels of coverage. Basic coverage is cheapest, but provides the lowest reimbursements for procedures. It pays for accidental injury, poisoning and illnesses. Typical policies have caps on reimbursements per accident or illness, and caps on total reimbursements per policy term. Annual premiums on healthy 3-year- olds are $140 with $75 to $100 deductibles. “Comprehensive coverage” is more expensive, but reimburses more. This is $250 per year with deductibles of $75 to $100 annually. “Pet well care protection” reimburses for preventive care: physical exams, flea and heartworm prevention and vaccinations — running at $144 per year.
HMO coverage: Some vets offer wellness packages discounting vaccinations, spay/neutering and dental cleanings. Some offer geriatric health checkups. These are not insurance policies and are not subject to the same rules and regulations required of insurance companies.
Discount plans: These offer a discount for veterinary services and some supplies. One national program offers 25 percent savings on veterinary services including surgeries and hospitalizations and up to 50 percent on pet supplies. You must go to participating veterinarians and pet vendors under these programs.
