Your Pet Insurance Guide - A Veterinarian's Perspective

Switching Pet Insurance Companies In Midstream

This is the second installment of guest posts by readers of this blog detailing their journey of researching and finding a pet insurance company and policy for their pet. In this story, Merrick decided to switch companies when his dog was 10 years old. This can present some challenges especially when considering the presence of pre-existing conditions. I greatly appreciated his willingness to share his thoughts during the research process and even now. The opinions expressed in this blog post are those of the author. Every pet owner's situation is different and may have differing opinions and/or reach different conclusions. However, this story can provide valuable insight into the process of researching pet insurance companies and policies.

 Here is what he wrote:

You and I have been conversing back and forth via e-mail for several months now, so I think it's time to tell my "pet health insurance story."

It's also an appropriate time to do so given that just last month I cancelled my 10yo Lab/Chow mix's policy I had with another company (one that uses a rate schedule) that we had since 2004 -- a full seven years!  She hasn't had any major problems since then, thank heavens, because I obviously want her to be as healthy as possible throughout her life.

But let's jump back to last fall (2010) when I was carrying our old policy, knowing it wasn't the greatest, but giving me at least a sliver of peace of mind, given that I was not aware of any other pet health insurance plans.

Top 10 Most Expensive Pet Health Conditions

I received this information in an e-mail today. I appreciate the fact that pet insurance companies have a database of information that allows them to search for statistics such as this. This information can be helpful to pet owners who are contemplating whether to get pet insurance.

Nation’s Largest Pet Insurer Reveals Most Common $1,000+ Claims

Brea, Calif. (June 28, 2011) — Few pet owners imagine they will ever have to spend more than $1,000 for treatment of a single pet health incident or condition. Unfortunately, data from Veterinary Pet Insurance Co. (VPI), the nation’s oldest and largest provider of pet health insurance, reveals that $1,000 veterinary bills may be more common than expected. 

PetPlan Claims Experience

By Desiree Nascimento, June 2011

My Kerry Blue Terrier, Kieran, was a healthy dog all her life so when I enrolled her with PetPlan in October 2009. I wondered if it would be worth it. At the time Kieran was seven years old and her last physical gave her a clean bill of health.

Three months later in January 2010, Kieran started intermittent vomiting. I thought perhaps her food was the problem so I gradually changed her kibble, but the vomiting persisted.

A Dog Day Afternoon - Pursuing Pet Insurance

I am so grateful that a reader of this blog has agreed to write a couple of guest posts about her experiences in selecting a pet insurance company and policy for her pet. I hope that it will be an encouragement to everyone else who reads it.

By Desiree Nascimento

In October 2009 I took on the task of purchasing pet insurance for my seven year old Kerry Blue Terrier. As I conducted research over a two month period I found the variables of pet insurance vast, the comparisons between companies confusing, and the task daunting. Yet I tackled it and came out on top.

Pet Owner's Opinions About Pet Insurance

I really hesitated to even bring this article and all the comments that follow it up for you to read or discuss, but it runs the gamut of pet owner's opinions about pet insurance. Since I visit pet forums frequently, I've seen all this before, but it might be interesting reading for some of you. Some pet owners point out in the comments what I will say below, but you'll find that some people think that all insurance is a scam, especially pet insurance.

Granted, the customer service by this company left a lot to be desired, but as is often the case with pet owners who have bought pet insurance and then had a claim denied, they reach the conclusion that pet insurance just isn't worth it. This is why I stress so much to know what you are buying when you buy it. This is your responsibility as a pet owner and it is usually available in black and white in something called the "policy."

Therefore, do your due diligence and research, research, research. You will be much more likely to be a happy and satisfied customer if you do. 

Pet Insurance Can Come In Handy For Older Pets

The title and content of this article reminded me of something that I often tell clients when discussing a diagnostic or treatment plan for their older pet. Pet owners of older pets tend to think that because their pet is older and has a serious condition that it isn't worth pursuing treatment. What they don't understand is that every pet as they get older will eventually develop a chronic disease (just as humans do). This chronic disease can often be treated alleviating the symptoms and giving the pet several more years of a relatively good quality of life.

But, it will usually be necessary to give some sort of medication long-term with periodic rechecks and monitoring which can over time be expensive. This is where pet insurance can help. Even if you don't use your pet insurance much when your pet is younger, eventually you will as your pet ages. You must get the insurance before these problems show up so that they won't be pre-existing and not covered.

There are several insurance companies that will write policies on older pets. Simply go to each pet insurance company's website and obtain a quote to see if your pet is eligible for coverage.

What is that advice that I often give pet owners?

"Old age is not a disease."

PetPlan Reimbursement Over $25,000

I just read an article about a $25,000 reimbursement by PetPlan over a 3 year period of time for a dog with hip dysplasia. This is considered a hereditary problem and not covered by all pet insurance companies. PetPlan is one of several companies that do now cover hereditary conditions.

A Recommendation In Favor Of Pet Insurance

I'll let this letter speak for itself.

Pet Insurance Comes In Handy

I came across a video blog that summarizes many of the points you should consider when deciding whether to get pet insurance for your pet and also how to decide on a company and and policy for your pet.

I don't think the intent of this video was necessarily to recommend Trupanion because they didn't look at all the companies that offer pet insurance in the U.S. I think the main take away from this video is to show the importance of getting unrestricted coverage for hereditary conditions. Getting this coverage didn't cost any more in monthly premiums, and paid off big time when a claim was filed. As many of you know, getting coverage for hereditary conditions is one of the 4 factors I consider most important when selecting a policy for your pet. Some companies don't offer coverage at all for hereditary conditions. Some offer restricted coverage like VPI and Pets Best in this video. Then, there are several that offer unrestricted coverage up to the maximums of the policy.

Some of the total costs given in the video (based on per-incident or annual maximums, deductible and copay) are inaccurate because Trupanion also doesn't cover veterinary examination fees which would add to the out-of-pocket costs somewhat. But, the overall message of the video is very well presented. 

Another lesson from the video that I'd like to point out to pet owners is that good coverage can be found for an affordable and competitive price, but it will require you to thoroughly research all the companies to pick which one is best for you and your pet.

Top 10 Reasons Pet Owners Take Their Pet To The Veterinarian

The top 3 reasons that pets are taken to the veterinarian according to claims submitted by VPI pet insurance company are often related to the same underlying problem. They are:

1. Ear infection
2. Skin allergy
3. Skin infection/hot spot

"I can't imagine how my pet got an ear infection!" is a comment I hear from pet owners. An acute ear infection caused by a foreign body in the ear canal or getting too much water in the ear canal when giving a bath is actually uncommon. Most ear infections seen by veterinarians are secondary to an underlying allergy, most notably something in the environment like seasonal pollens or a food allergy. These problems are often chronic and you'll likely be faced with occasional flare-ups the rest of the pet's life. It's not uncommon for dogs with allergies to also have secondary ear infections or skin infections (pyoderma).

Dogs, especially, usually first show symptoms of allergies when they are young. Symptoms often include itchy skin manifested by excessive scratching or licking of feet or skin, shaking their head, rubbing or scratching their ears, reddened skin or a rash. Sometimes, you may have several visits to your veterinarian for the same problem over and over and receive the same treatment e.g. steroids and/or antibiotics, ear ointments, etc. If you find this happening, you and your veterinarian should try to find the underlying problem (usually, what's the pet allergic to?) and treat it rather than treating the symptoms over and over with medications that can have serious side effects with chronic use.

These are among the most common problems that veterinarians see - starting when the pet is young and requiring some sort of treatment the rest of the pet's life resulting in significant cumulative costs. Therefore, you should consider getting pet insurance when your pet is young (puppy or kitten) before symptoms start so that they will be covered by insurance. 

Top Ten Causes of Broken Bones In Pets

VPI recently listed the top 10 causes of broken bones in pets based on the insurance claims they receive from pet owners whose pets are insured by VPI. As suspected, and as I alluded to in my last post, many of these causes are preventable.

One of VPI's veterinarians, Dr. Carol McConnell states, “Injury prevention includes careful management of a pet’s environment by removing possible threats and eliminating situations that might put a pet at risk. Broken bones are painful for pets and costly for pet owners." 

One of the most common predisposing factors (40%) that led to broken bones was being hit by a car. Sometimes a pet owner will take every reasonable precaution to keep this from happening, but the pet accidently gets out and goes into the street. However, you'd be amazed at how many pet owners let their dog out the front door unattended and/or not on a leash. That's just asking for trouble. I hear all the time, "But Doc, he never goes into the street" or "I keep a close eye on him." I've seen those words come back to haunt many a pet owner. What's amazing is that not uncommonly those same pet owners have fenced back yards!

Other potential things that can happen to pets when they are allowed to run free are getting into a poison, being shot with a gun, getting into garbage, being attacked by other dogs, etc. It's not unusual for a veterinarian to be presented with a sick pet that is allowed to run free and the owner has no idea where the pet has been and/or what he may have gotten into (since our patients can't tell us). This makes it tougher for the veterinarian to diagnose the problem and may lead to more tests and more expense than would otherwise be necessary to try and narrow down the cause of the problem.

One of the lessons to be learned from this article is to keep your pet in the house, in a fenced yard, or on a leash to prevent accidents from happening that can lead to pain and suffering for your pet and an unnecessary drain on your pocketbook.

The Wise Pet Owner

I have been trying to find a commercial that I remembered seeing years ago to illustrate the reason that I wrote “The Wise Pet Owner.” I thoughtI remembered it being a Midas commercial, but I found an old Fram Oil Filter commercial that illustrated the point and contained the particular words I was looking for. The words I remembered were, “You can pay me now, or you can pay me later.” In the context of the commercial, it meant that you can pay a little for regular maintenance on your engine or you can pay a lot later to have it rebuilt because you neglected regular oil changes.

How does this apply to your pet? Wise pet owners would rather prevent a problem than treat it because they know that prevention costs much less than a cure and also avoids unnecessary pain and suffering for their pet.

Pet Insurance Books Updated

I'm finding that several pet insurance companies tweak their policies every year. Some have major changes e.g. changing underwriters and/or offering completely new policies. Therefore, it's necessary to update the books and worksheets that I've written.

I just completed updating Your Guide To Understanding Pet Health Insurance (paperback and Ebook versions) in February, 2011. They have the latest company and policy information. I've added a new chapter as well as fresh advice about several issues that came to my attention since the last update.

The Excel worksheets have also been updated and expanded to reflect all the possible policy combinations for each company. This really comes in handy for those companies that allow you to customize your policy. For example, with Embrace's policies, there are at least 60 different possible policies. I've also written downloadable and printable worksheets (for those that don't have Excel) that pet owners can use during their research of pet insurance companies. These also have formulas that you can use to manually calculate out-of-pocket expenses. Information on downloading these worksheets are included in the book updates.

I have been interviewed by folks writing an article on pet insurance for a newspaper or magazine. I've also done interviews for radio programs. While these mediums can provide an introduction to the topic of pet insurance for pet owners, they do not allow an in-depth discussion and analysis of the complexities of pet insurance. This blog, and especially the book, allows me to do just that.

The Ebook is a little more colorful and contains many live links to useful information to help pet owners in their research of pet insurance.

I want to thank all the readers who have responded via e-mail to the book and especially those who have asked questions. It has lead to some fruitful discussions where it is my hope that the readers have benefited from my advice and input, but I can say with certainty, I have benefited from their observations and experiences when doing the research to find the best company and policy for their pet. Please know that I welcome such interaction.

Pets Best New Direct Deposit Program

I am posting a link to a press release by Pets Best about their new direct deposit program to speed up the filing of claims and reimbursement processes. I believe that other pet insurance companies have also implemented the ability to do this, but may not be as fully automated as Pets Best yet. It is worth asking your pet insurance company about this. Dr. Jack Stephens, the President of Pets Best says that he believes that this is the direction that pet insurance companies are headed. I think this is beneficial to pet owners and veterinarians alike.

 

Changes Needed for Pet Insurance to Benefit More Pet Owners

Last week, I got a phone call from a gentleman in California whose dog had just had surgery and the bill was $4600. At the time, he didn't have pet insurance, but this episode stimulated his interest. He did some investigation into pet insurance and found out something that didn't make sense to him so he called me with the following question. "Is it really true that I would have to pay the veterinarian and then seek reimbursement from the insurance company? That's not the way my human insurance works, or for that matter, any of my other insurance works. Somehow that seems almost backwards. Fortunately, I live in an affluent area and I was able to do that. I paid with a credit card. If I'd had insurance, I could have filed a claim and hopefully gotten reimbursed before the credit card bill came due."

This does bring up a point that I've been trying to make for a while now. Many pet owners who could benefit from pet insurance can't right now because the current model is indeed one of reimbursement after the bill is paid in full. The gentleman is right - pet insurance as it exists today is primarily for the affluent and/or those with plenty of available credit.

During his investigation, he had surmised that one of the main reasons for the existing model is that veterinarians by and large refuse to accept payment directly from insurance companies. I've posted before in articles and on this blog why they are reluctant to do so.

Someone will figure this out. In fact, he indicated that he is a businessman and is very interested in working on a solution to this problem that limits the pet insurance availability to many pet owners. Do you have an opinion or idea?

Managing Pet Healthcare Expenses With Pet Insurance and CareCredit

It is common for pet owners to use an available credit source along with a pet insurance policy to help them manage their pet’s healthcare expenses. One such credit source is CareCredit, a health credit card. They offer 6 and 12 month “no-interest” payment plans. This allows the pet owner to file a claim and get reimbursed before the credit card balance is due.

Here are some tips (based on my conversation with a company representative) when using CareCredit (any interest rates mentioned are accurate as of 10/2010 and subject to change, so be sure and ask the company for current rates):

1)    Even if you don’t think you have good enough credit to qualify, apply anyway. I’ve had some clients who were pleasantly surprised when they were approved. You can apply over the phone (1-800-365-8295) or over the internet (carecredit.com/vetmed). You can also have a co-applicant on your account (sort of like a co-signer) that could increase your chances of approval. They will let you know within minutes whether you are approved and what your credit limit is (up to $25,000 based on creditworthiness). They will give you an account number that you can use immediately until you get your actual card in the mail. It is best to go ahead and apply before you actually need it.

 2)    You should check with your veterinarian, local emergency center and/or specialty hospital to see if they accept CareCredit. It is becoming more commonly accepted. Other healthcare facilities (e.g. dental, vision, etc.) may also accept your CareCredit card.

 3)    They also offer extended payment plans of 24 to 48 months on treatment fees over $1000 and 60 months on treatment fees over $2500. Currently, the fixed interest rate for these plans is 14.9%. If you default on one of these plans, the interest rate increases to 29.9%.

 4)    If you fail to pay off your “no-interest” plan by the end of the promotion period, you will be assessed a 26.9% rate from the date of purchase and until you pay the balance off. If you are late making a payment and/or default on the loan, the interest rate will increase to 26.9% - 29.9%. You can make extra payments to your promotional balance at any time without penalty. I was told that the extra payment would go toward the promotion expiring first.

 5)    Since it is possible to have multiple promotions going on at once, you will want to keep in touch with the company to make sure that each one is paid off before the promotion offer expires. Otherwise, you will owe the above huge interest charges in addition to the loan amount. The bottom line is that while CareCredit can be a great tool to use with pet insurance, you must use it responsibly – that is, avoiding the high interest charges if you fail to pay off the balance before the “no-interest” term expires, are late with a payment, or default on the loan.

 6)    Although you can use your CareCredit card for both large and small purchases, my advice would be to use it only for those large, unexpected purchases so that you don’t have multiple promotions going on at the same time. The more promotions you have going on, the greater the likelihood of losing track of them and ending up having to pay large interest charges on top of the original purchase.

 

Avoiding Claim Denial Because Of A Pre-Existing Condition

Pre-existing conditions are not covered by pet insurance companies. Pre-existing conditions are problems or diseases that your pet may have shown symptoms of or been diagnosed with before the effective date of the policy. Most insurance companies will use the date you first noticed the problem, not necessarily the day it was diagnosed by a veterinarian. Some companies may cover a problem that occurred previously if it was "cured" and not considered a chronic condition (no symptoms or treatment within the last 6 months).

From reading reviews that policyholders write on the various companies, this is a reason that is frequently given when a claim is rejected. How can you avoid this? Buy a policy when you first acquire a puppy or kitten and/or before your pet manifests any signs of illness. There will be a waiting period for illnesses - usually 2 weeks or 1 month (varies depending on the company) and 24 to 72 hours for accidents. If your pet gets sick or injured before you purchase a policy or during this waiting period, it is unlikely the condition will be covered. Clients suddenly become interested in pet health insurance when they are in my office and their pet has a serious problem. Unfortunately, that's not the best time to inquire about it.

During the application process, you will usually have to answer several questions about any previous problems your pet may have had. You should be completely honest when answering these questions. Knowingly misleading the insurance company about your pet's previous problems is called fraud and is grounds for the policy to be cancelled. Depending on your answers to these questions, the insurance company may issue a policy on your pet with no exclusions or they may request further information from you and/or request your pet's past 12 - 24 months medical records. Even if you aren't required to send in medical records during the application process, you will likely be required to send in medical records when you file the first claim. If you have forgotten to mention something during the application process, it may become evident when the company reviews the medical record and a condition could be considered pre-existing and excluded from coverage.

Therefore, you should tell the insurance company during the application process that you want to know in writing if there are any conditions that will be excluded from coverage and for how long because they are considered pre-existing. Most of the insurance companies will do this if you make this request, and it is worth asking about so that there aren't any surprises down the road. The last thing you want to do is pay several months/years of premiums only to find out that a claim is denied because the insurance company considers a condition pre-existing before you bought the policy. 

The goal is transparency on your part to reveal any known-about prior medical problems to the insurance company and transparency from the insurance company to reveal (when the policy is initially written) what, if any, pre-existing medical problems are excluded from coverage. If one or more conditions are excluded from coverage and you elect not to insure your pet, you can usually cancel the policy for a refund of premium as long as you haven't filed a claim.

If your pet is older when you apply for a policy, the insurance company may request your pet's medical records to review and/or require a physical exam and/or lab testing to make sure your pet doesn't have a chronic condition that would preclude coverage for illnesses.

Pet Insurance - Good Summary Article

A relative sent me this article that appeared in their local newspaper. It contains a good summary of decisions pet owners make when it comes to paying for their pet's healthcare and how pet insurance can help.

Wild About Pets Talkshow Episode on Pet Insurance

I had the opportunity last Friday (7/16) to be the guest on Susan Frank's Wild About Pets Radio Show. We had a good discussion about pet insurance. This show airs every Friday and has expert guests dealing with a wide range of topics of interest to pet owners. I encourage you to check it out.

Pet Insurance Coverage For Prescription Diets

This is a topic that not many people think about. While it isn't a big factor in the grand scheme of things, some companies do provide some coverage for these diets. These diets are usually more expensive than your pet's usual diet.

What is a prescription diet? It is a diet usually available only from your veterinarian for a specific medical condition. There are several companies that manufacture prescription diets like Hills, Iams, Purina, and Royal Canin. Examples of these diets are K/D for kidney failure, S/D and S/O for dissolution of struvite stones, H/D for heart failure, etc. Studies have shown that some of these diets prolong a pet's life while also providing a better quality of life.

The following companies offer no coverage for these diets:

• Purina
• ASPCA/Petshealth
• Pet's Best
• VPI
• HealthyPaws

The reasoning for not covering the diets is that if your MD recommended a low salt diet or low fat diet, you would alter what you eat, but your health insurance policy wouldn't pay for it.

The following companies offer at least some coverage of these diets up to the per-incident, category, or annual maximums for the policy:

• PetFirst - standard plans don't cover prescription diets, but an optional rider can be added for $5 per month to cover these diets. This will cover 25% of the cost of a prescription food up to $250 annually.
• 24 PetWatch - covers 25% of the costs of prescription diets up to 6 months.
• Embrace - covers prescription foods in their new Wellness Rewards Plus program.
• PetPlan - covers any food that is prescribed for the dissolution of kidney/bladder stones for up to 6 months. Other prescription diets aren't covered.
• Trupanion - provides probably the broadest coverage. They will cover foods prescribed for chronic conditions e.g. kidney failure, heart failure, diabetes, allergies, etc. up to 25% of the cost of the food. Diets for weight loss aren't covered. They cover diets to dissolve stones while the patient is symptomatic, but they don't cover a maintenance diet after the stones are dissolved. The decision to provide long-term coverage for prescription diets is decided on a case by case basis depending on the condition being treated (whether it has resolved or is on-going) and in consultation with the veterinarian recommending the diet. 

Pet Insurance Claim for Intervertebral Disk Disease in a Dachshund

I ran across this example of a claim for surgery on a condition common in Dachshunds - intervertebral disk disease (slipped disk).

Since this is a Trupanion claim, I want to point out several things about it. Trupanion doesn't pay for examination fees. The examination fees in this example are likely from a specialist. Depending on the length of hospitalization, daily examination fees can add up. Therefore, many pet owners who purchase a policy from Trupanion will select the $0 deductible and let the examination fees act as their deductible (as the pet owner did in this case). Trupanion allows pet owners to select their own deductible between $0 and $1000. Remember, however, it is a per-incident deductible, so you want to keep it low as a general rule.

Pet Insurance Claims For Young Pets - Prevention Is The Key

It is interesting what the most common claims are for different age pets. This article reinforces that many problems that young pets get can be prevented. It also reinforces the advice to get pet insurance when your pet is young. Many pet owners don't see the need for insurance when their pet is young and the picture of health. But, you never know...

The link to insurance comparisons at the end of the article is for British companies.

Pet Insurance Allows Pet To Get Needed Surgery

This is an illustration how pet insurance is supposed to work. Pet needed expensive surgery. Because the pet's owner had pet insurance, she opted for the surgery paying for the bill with a credit card. The dog recovered and she got her reimbursement check from the insurance company before the credit card bill was due.

The title to the article is a bit misleading. I don't think it means that the spinal problem would have been fatal to the dog, but that the pet owner may not have been able to afford the surgery if she didn't have pet insurance, and might have had to opt for euthanasia.

Why Buy Pet Insurance?

I ran across an article written by Laura Bennett, the CEO of Embrace Pet Insurance Company, that gives interesting insight on her journey from purchasing pet insurance for the first time to actually starting a pet insurance company.

Interestingly, two of the responses to the article were from people who have had pet insurance for a number of years and had negative impressions of the industry. They had purchased a policy from a company that provides limited coverage and/or excluded conditions that many of the newer companies now cover.

You must do your research and know what to look for and what to avoid when deciding if you want to purchase pet insurance, and if so, which company and policy is best for your pet.

The one thing that I keep saying over and over that Laura agrees with is that the pet owner's decision shouldn't be whether to open a pet health savings account or purchase pet insurance, but the wise pet owner will do both. A savings account and a pet insurance policy serve two distinctly different purposes.

I might add that in addition to savings and a pet insurance policy, a major credit card or CareCredit would be helpful in paying your pet's healthcare expenses.

Buy Pet Insurance Early

I recently posted about this subject. Yesterday, I was reading a forum post from a pet owner that had bought pet insurance and when she filed her first claim, the company requested her pet's medical records. After reviewing the medical record, the company denied the claim stating it was for a pre-existing condition. Needless to say, the pet owner wasn't very happy.

Embrace pet insurance has a Medical History Review that can give pet owners peace of mind that there won't be any surprises pertaining to pre-existing conditions when you file a claim. Other companies may be willing to do the same thing if you ask. If the company informs you that there are pre-existing conditions that won't be covered, and that is unacceptable to you, you can cancel your policy early on and sometimes receive a full refund (if the company has a e.g. 30 day money-back guarantee and you haven't filed any claims). Remember though, even if one or more conditions are excluded from coverage, there are still potentially hundreds of other conditions that will be covered under the policy. So, you'll have to decide if the pet insurance is still worthwhile to you even if there are excluded conditions.

***When I include examples from specific pet insurance companies, it is not intended to be an endorsement of those companies. I have endeavored to remain as neutral and unbiased as possible, but will from time to time point out both good and bad when I see it. My goal is always to educate pet owners about how pet insurance works and help them select the best company and policy for their pet. 

Good Information from Trupanion website

As I've stated before, pet insurance companies use their website to promote their product in the best light and sometimes even compare themselves to competing companies. However, some websites also provide very good educational material for pet owners in an effort to help them understand how pet insurance works. When I find such material, I'll pass it on to you - but, that doesn't mean I endorse that particular company, but simply that they have provided something that every pet owner should know and understand about pet health insurance. Here are several pages from the Trupanion website:

Cost of Claims

Truth About Profits and Costs of Claims

Alternatives to Pet Insurance

Pet Owner Finally Quits Smoking For Her Dog's Sake

I've told my own clients and have written an article abstract about the effects of second-hand smoke on pets. It causes many of the same health problems in pets that it does in humans. 

Here is a story that is heartwarming and not only speaks to the issue of the hazards of second-hand smoke, but also the special relationship that exists between some pet owners and their pets.

Pet Insurance Claim Examples From Embrace

I read pet forums weekly and pet insurance frequently gets negative comments with people saying it is just not worth having. After over two years of researching pet insurance, some of the criticism is warranted because there are both good and bad policies that pet owners can select from. The key is selecting the best ones.

On Embrace Pet Insurance's blog, they are focusing on the topic of cancer in pets this month. Below are a couple of links to actual claims that Embrace paid for pets that were treated for cancer:

Mast cell tumor

Anal gland adenocarcinoma

I just wanted you to know that for some pet owners, pet insurance is worth it.

Best Time To Purchase Pet Insurance

I'm reminded of the question, "When is the best time to plant a tree?" The answer is - 20 years ago. If you had planted a tree 20 years ago, you'd be enjoying it's shade, fruit, etc. today. If you haven't planted a tree sometime in the past 20 years, the followup question is, "When is the next best time to plant a tree? The answer is - today.

Since pre-existing problems aren't covered by pet insurance policies, the best time to buy pet insurance is when you first get your pet before a problem occurs that could be considered pre-existing. Enroll those new puppies and kittens!

Now, Trupanion has offered stats that support this advice.

Claims for Grape/Raisin Toxicity

I found an article today about claims that Trupanion has paid for this common toxicity in dogs and cats. Many people are surprised to learn that grapes and raisins are potentially toxic to pets. I've actually had clients volunteer that they occasionally offer a few grapes to their dog. As you can see, treatment for this toxicity can be expensive. Of course, it's best to prevent this potentially lethal toxicity by not feeding your dog or cat grapes or raisins.

Ok, time to fess up. How many of you have fed your pet grapes or raisins? How many of you didn't know it was potentially toxic to your pet?

Trupanion's New Dog and Cat Breed Guides

Trupanion just launched a Dog and Cat Breed Guide that details many of the dog and cat breeds, their characteristics, and diseases that they are prone to be diagnosed with. It is very informative and similar to the Embrace Dog Breed Database which I wrote about earlier, but the layout is different and definitely worth the look. Again, I hope it emphasizes the importance of getting coverage for hereditary diseases when you select the company and policy to insure your pet.

PurinaCare Comes Through With Big Claim Reimbursement

I am including a recent blog post on the PurinaCare Blog that is very interesting.

There are at least 3 things that pet owners can learn from this true story:

• You never know when your pet could be facing a serious life-threatening (and therefore expensive) crisis. Here is the story of a dog that had a relatively routine surgery that ended up with unexpected complications. What would you have done if your pet faced this sort of crisis with a bill of over $18,000? Would having a pet insurance company help with a substantial part of the bill make a difference in your life or that of your pet?
• Perhaps you can see the importance of recognizing the differences in pet insurance policies. PurinaCare has an annual maximum limit of $20,000 with no "per-incident" limit. If you have pet insurance now, check your policy and see what the insurance company would have paid on this claim and what you would have had to pay. If you don't yet have pet insurance, but you are contemplating it, let this be a lesson that you should get the highest annual maximum that you can afford, and beware of policies with a per-incident maximum.
• Since most pet insurance policies require the pet owner to pay the veterinarian in full and then seek reimbursement from the insurance company, even if you had pet insurance, would you have been able to do that in this case? I suspect that paying $18,000 out-of-pocket is out of reach for many pet owners. You would have to have money in the bank or available credit. Many pet owenrs coordinate a pet insurance policy with a CareCredit card that provides them with no interest payment options. When the pet insurance company reimbursement arrives, they can then pay off the credit card. Some companies will pay the veterinarian directly if the pet owner pays the veterinarian the deductible and co-pay and for any non-covered expenses. But, your veterinarian and the pet insurance company must agree to this type of arrangement. Be sure and ask a pet insurance company if they have provisions to do this in case of a large claim like this one. You might also ask your veterinarian if they would be willing to accept payment from your insurance company if such a situation as this case occurs. However, it is unlikely that your veterinarian or the insurance company will be willing to do this with smaller claims.

Pet Insurance Ebook Informs Pet Owners

The Ebook, "Your Guide To Understanding Pet Health Insurance" is now available. There is a video giving pet owners a glimpse inside the book. The book contains numerous clickable links to pet insurance company websites as well as a step by step guide (with links) on how to research each company. 

Two years of research have gone into this book, and I'm grateful for all the help that colleagues (fellow veterinarians) who are on the staffs of several pet insurance companies, company CEOs, and other special contacts at companies have given me. Their help has been invaluable to helping me understand pet insurance in general, and their company in particular. I told each of them on the front end that this book is an unbiased look at the pet insurance industry and several of them have told me personally that I achieved that goal.

Another Ebook I've written entitled "The Wise Pet Owner" which advises pet owners how to save money on their pet's healthcare expenses is a free bonus item when you purchase the pet insurance book. Again, it is written from a veterinarian's perspective because I (as do other veterinarians) see pets every day who are suffering and sometimes who die needlessly from accidents or illnesses that could have been easily prevented saving family members much grief and also money.

 

Pet Insurance Ebook Coming Soon!

I am excited about making the book "Your Guide To Understanding Pet Health Insurance" and "The Wise Pet Owner" available in an Ebook format. Why an Ebook?

• This format allows me to update the book easily as changes happen frequently in the pet insurance industry. For example, since I published the book as a paperback, one company no longer exists (National), and several companies have made minor tweaks to their policies.
• I am constantly thinking of ways to make the confusing world of pet insurance a bit easier to understand for pet owners and I'd like to include these updates in the book.
• It allows me to have active hyperlinks to make the book somewhat interactive and helps make the process of researching pet insurance easier for pet owners.
• It allows me to provide hyperlinks to websites that help explain things in more detail.
• It allows me to offer a little color (for emphasis) to the tables pet owners will use to summarize their findings when doing their research.

I plan to offer Excel worksheets that will automate calculations that pet owners need to do when doing their research and narrowing down the list of possible companies and policies that are best for them and their pet. These worksheets also have color for emphasis and clickable hyperlinks when appropriate.

I will soon have some short videos that will show how all this works - so be watching for more details! 

Perspectives On Pet Insurance

I just read the first chapter of a new book by Andy Andrews entitled "The Noticer." It is a book about an old man who finds people going through hard times and offers them advice. He "notices" things about their plot that they can't see and offers them a perspective that changes their attitude and ultimately their destiny.

You ask, "What does this have to do with pet insurance?" Well, nothing really except a line jumped out at me that is the inspiration of this post.

"Experience isn't the best teacher. Other people's experience is the best teacher."

If you are like me, before you buy almost anything of significance, you look at as many customer reviews as you can. Here you will read about the experiences of people who have actually purchased the product and/or dealt with the company. You will learn things by doing this that you won’t learn on the company’s website or even reading my book. I would advise you to not purchase a health insurance policy for your pet without looking at some reviews. Also, be sure to read the comments that follow the reviews. I found an excellent website to do this. Watch this short video.

When choosing a p et health insurance company, you are starting a relationship that you need to be comfortable with. Sometimes the service you receive and the trust factor is more important than the cost factor. Because pre-existing conditions are not covered by any insurance company, it is best if you make the right choice the first time rather than being dissatisfied and switching later to another company after you’ve filed several claims and your pet then has one or more conditions that won’t be covered.

Lessons From Trupanion Pet Insurance Website

I'd like to share with you an updated video from the Trupanion website. I believe you'll gain a better understanding of pet insurance and how it works. The video is best viewed full screen. Thanks for watching and let me know if you have any questions or comments.

PetPlan Pet Insurance CEO's Tell Their Story

Yesterday, I shared an article about the CEO of Embrace Pet Insurance. Today, I'm sharing another article about the CEOs of PetPlan Pet Insurance Company. If you read the article yesterday, this article may sound strangely familiar. You'll find out why as they tell their story.

By the way, I want to thank the Laura and Alex at Embrace and Chris and Natasha at PetPlan because they have been very gracious to me as I have done research for my book on pet insurance and they continue to keep me updated and so far haven't tired of my asking new questions from time to time.

Embrace Pet Insurance CEO tells her story

I read a great article today about Embrace Pet Insurance CEO, Laura Bennett, and why she decided to take the plunge and start a new pet insurance company. I hope you enjoy it too!

Wall Street Journal Interview about Pet Insurance

Dr. Kenney was interviewed by Anna Matthews of the Wall Street Journal about Pet Insurance. She has written a very good article that pet owners should read. To hear the interview, click on the audio in the article.

The Importance of Hereditary Condition Coverage with Pet Insurance

I just got back from a Continuing Education seminar where one of the speakers talked about liver diseases. There are several congenital and/or hereditary liver diseases that veterinarians see in practice that are expensive to diagnose and treat. Sometimes, even surgery is required to correct/treat the condition.

Not all insurance companies offer policies that cover congenital/hereditary diseases. Some companies offer limited coverage. There are several that cover hereditary, but not congenital diseases, and some companies cover both.

In my book, I outline all these differences and go more into detail as to why such coverage is important - from a veterinarian's perspective. You should make this important factor a key point when doing your research to find the best company and policy for your pet.

I was also reminded of something that I'll recommend to you. Perhaps your veterinarian already recommends it to you. When you take your pet in for an annual or semiannual wellness examination, it's a good idea to do some basic blood tests that can help uncover e.g. liver disease (even though your dog or cat may appear in perfect health to you) before it advances to the point that the prognosis for recovery isn't good. Sometimes our pets don't show symptoms until a disease is advanced and a good wellness program can detect disease even before your pet appears ill.

I'll give an example. Chronic hepatitis in dogs is more commonly seen in certain breeds, and some of those breeds have actually been identified as having a genetic basis for the disease. If you have one of those breeds and your pet's insurance policy excludes hereditary conditions, you'll end up paying for the diagnosis and treatment out-of-pocket - yourself.

One way to detect chronic hepatitis early-on is by detecting an elevated liver enzyme (ALT) usually between the ages of 2 and 5 years old. Chronic hepatitis isn't the only problem that can cause the ALT to be elevated, but it is a red flag that warrants further investigation. In some dogs, if the condition is not recognized until the dog is showing symptoms, the prognosis is unfavorable for response to treatment.

Is Pet Insurance Worth It? TV Station Investigates

A Fox News station spent the night at an emergency center in Las Vegas to determine if pet insurance would be helpful when paying for a pet's healthcare expenses - particularly since emergency care generally costs more. See what they determined here.

Petfinder.com Partners with Petfirst Healthcare Pet Insurance

If you've recently adopted or are considering adopting a pet from a Petfinder associated shelter or rescue organization, you are eligible to get up to $1000 in pet insurance benefits at a discounted premium. Go here for details. There are no age restrictions.

New Software Could Benefit Pet Owners

There is a new software that helps pet owners store their pet information. You can keep track of expenses for your pet's healthcare and pet insurance premiums. You can store vital information about your pet e.g. your veterinarian's name, address and phone number, insurance policy number, examination and vaccination dates and reminders, microchip number. You can keep track of when to give medications and mark that you gave them,etc.

This is an Apple OS X application, but is also available as a downloadable app for your iPhone or iTouch.

For more information go here.

Is Your Veterinarian A Reliable Source Of Pet Insurance Information?

Linda Markland, a tenured technician at Veterinary Pet Insurance (VPI), came by my office last week for a visit because they are familiar with my book. Dr. Carol McConnell and others were kind enough to share some of the insights they have into pet insurance when I was doing the research for the book. It was the first face to face visit I've had with a representative of VPI although they are good about calling or e-mailing me about interesting articles or podcast they discover from time to time about pet insurance. I was fortunate enough to form relationships albeit via e-mail and by phone with company CEOs, veterinarians, and others at most of the insurance companies who I continue to contact trying to keep up with changes as they occur. To all of them, I am extremely grateful.

Linda had spent three days in Memphis visiting several practices and even giving them seminars about pet insurance. I asked her what she learned. She told me that veterinarians in general don't know a whole lot about pet insurance and sometimes this includes even the companies that they recommend to their clients, whether it is VPI or another company.

This confirms a suspicion that I've had and even wrote about in my book. Insurance companies are very willing to send brochures to veterinary hospitals about their company to give out to pet owners. Many veterinarians don't know much about pet insurance and it's nice to have something that they can put into the hands of clients who inquire about pet insurance. Some veterinarians will even openly recommend pet insurance to their clients and give out the brochures, but really not know much about the company itself.

On the other hand, I believe that there are some veterinary hospitals whose staff has been adequately trained by the pet insurance company they recommend and can answer accurately specific questions pet owners ask. 

I've had veterinarians tell me that they don't have the time or inclination to learn everything they can about pet insurance - that's the pet owner's responsibility because they are the ones who ultimately decide if they want pet insurance and which company they will purchase it from.

If your veterinarian gives you a brochure from a pet insurance company, be sure to determine if it is a wholehearted recommendation and why they recommend that particular company. Then, go do your own research and see if you come to the same conclusion before purchasing a policy.

Another Factor To Consider When Purchasing Pet Insurance

A reader of my book and blog contacted me recently while doing her research before purchasing pet insurance. She had already done an amazing job researching in order to make a wise purchase. She brought up a consideration that, frankly, I hadn't given much thought to. As it turns out, it just might be important to some pet owners.

She lives in California and has a 7 year old dog. After she narrowed down her search to 3 companies, she looked at how much her premium would increase as her dog aged. This is what she discovered:

Company A    Company B    Company C

Age 7 $45.01 $45.66 $35.75

Age 8 -9 $51.04 $66.93 $35.75

Age 10 $52.00 $101.57 $35.75

All three of these companies were favorable when compared to the important factors I outline in my book, but this was an eye-opener.

Company C doesn't raise premiums as the pet ages, so this could be an important factor for some pet owners. You should always be careful when a company advertises that their premiums don't rise as your pet ages. There is one company (not Company C) that keeps premiums level, but as the pet ages, the deductible and co-pay rises effectively increasing your out-of-pocket costs.

Which company did she ultimately go with? She was very tempted to go with Company C because of the no increase in premiums, but to get that premium she would have to get the $500 per-incident deductible. She ended up going with Company A and a $200 per-incident deductible.

So, when getting a quote from a company, you might inquire what the premium would be if your pet were older (use several different ages).

Pet Health Savings Accounts

While doing some research this weekend, I came across several companies that offer Pet Health Savings Accounts. It works somewhat like my own Health Savings Account my wife and I have with two exceptions. First, it isn't tax deductible. Secondly, it isn't tied to a high deductible insurance policy. Unfortunately, some of these companies are positioning themselves to compete with pet insurance companies for pet owner's dollars. 

I believe that a savings account and pet insurance should compliment each other, not compete against each other. The idea behind my HSA is that with my savings I can pay for minor medical issues, medications, etc. and the insurance policy will cover catastrophic medical issues. If I remain healthy, then my savings increase year by year. If I have a major health issue that I can't cover out-of-pocket, then my insurance will cover that. 

I try to put the maximum that is allowed into the savings account every year, and since my deductible is high, most years my insurance never comes into play. Does this mean the insurance is a waste of money (I pay quite a bit for it)? No, because all it takes is one year when you wind up in the hospital with a major illness or surgery to find out how necessary it is to have. 

For those people who advise starting a savings account, but not buying pet insurance leave the pet owner exposed to not being able to cover a major medical expense should it occur before their savings account builds up. And believe me - as a veterinarian, I see it happen.

Theoretically, as your savings build up, you can afford to raise your deductible and lower your insurance premium. This is what I've done over the years with my own health insurance. As premiums rose, it became almost cost prohibitive to keep maximum coverage. This usually meant changing to a higher deductible. The amount you choose for your deductible makes the biggest difference in the premium. What's interesting is to go to the websites of companies that allow you to choose your own deductible and notice the difference in the premium as you change this one variable when obtaining a quote. When choosing a higher deductible, make sure you can cover it out-of-pocket.

So, I prefer to advise the balanced approach. Pet owners should have a savings account, credit card, and pet insurance. Since pet insurance is indemnity insurance, the pet owner usually pays the veterinarian and then receives reimbursement from the insurance company within a couple of weeks after filing the claim. Having a credit card allows the pet owner to pay the veterinarian and then usually receive reimbursement before the credit card bill becomes due. As I said earlier, the savings can help pay for the deductible, co-pay and anything not covered under the terms of the policy.

VPI Hambone Award

Veterinary Pet Insurance (VPI) is offering its first annual Hambone Award to the pet whose owner submitted a claim for the most bizarre accident or illness during 2008. The award is named after a dog who got stuck in the refrigerator and ate the Thanksgiving turkey before being found.

 

I went to the website and read the stories of the nominees and then voted myself. You may vote until September 14. I urge you to read these stories to realize why pet insurance can come in handy and while you are there, be sure to vote!

Dog Breed Database

I was browsing the new Embrace Pet Insurance website today and came across really good information about many of the dog breeds. It details the characteristics about each breed and covers many of the diseases and problems that the breed is predisposed to. This should point out to pet owners the importance of buying a policy that covers hereditary conditions. It is likely that the problems and diseases associated with each breed in this database wouldn't be covered by a company that doesn't cover hereditary conditions. You should also take this into account if a company has limited coverage for hereditary conditions. I encourage you to visit this page. They apparently have a similar page for cats in the works. Thanks, Embrace for this valuable resource!

Pet Assure

Pet Assure is advertised as an alternative to pet insurance. You would be surprised, however, how many times I see it called an insurance company on the internet - sometimes by websites, e-books, etc. who profess to be advisers on pet health insurance.

 

Pet Assure is a company (club) that has a network of participating veterinary hospitals that offer their services at a discount (25%) to members of the club. Usually, the pet owner pays an annual membership fee to belong to this club and be eligible for the discounts. It is not insurance. There are no deductibles or co-pays. Pre-existing, hereditary, and chronic conditions are eligible for the discount. You receive the discount when paying your bill at the veterinarian’s office. 

 

Even though they advertise that there are no exclusions, services and products that aren’t eligible for a discount are any medication you are sent home with, food, flea and tick or heartworm preventatives, boarding or grooming, outside lab tests, referral to a specialist, and any product or procedure that is already discounted. The annual membership for a dog is $99 and $59 for a cat. They do have a family plan where up to 4 pets are covered for an annual membership of $149. 

The main problem with a network such as this is that it requires the veterinarian/hospital to discount their services. Therefore, there are often a very limited number of veterinarians participating in a given city or community. In other words, the veterinarian that you prefer and have an established relationship with may not and/or will not participate in such a network. 

 

You can read the reviews on Pet Assure as compared to insurance companies. You will even find some of the people who wrote the reviews referring to Pet Assure as insurance. For some pet owners - especially those with several pets, and if there are participating veterinarians in the area that they like, Pet Assure may be helpful. As with insurance, know that there are things that aren't eligible for the discount and that your savings are limited to 25%

 

Is Pet Insurance For You?

I want to post today about the limited reach of pet health insurance to pet owners as it exists today. This isn't talked or written about very much. Pet insurance is essentially a reimbursement plan. An insurance policy is a contract between the pet owner and the insurance company. This means that you must pay your veterinarian in full for the bill, then file a claim with the insurance company and wait for reimbursement. This has led many to ask, “If I can afford to do that, then why do I need insurance?” In these cases, the insurance reimbursement will help pay off the credit card debt or replenish the bank account.

Thus, the pet health insurance model of today implies that only pet owners who can afford to pay for a large bill out of their own bank account or with a credit card and then wait for reimbursement need apply. In my opinion, this leaves a large percentage of pet owners who cannot afford to pay a large, unexpected veterinary bill out of the loop.

Some of the insurance companies have provisions to pay your veterinarian directly after you pay the deductible, co-pay and for any non-covered procedures. The drawbacks to this are that your veterinarian may not agree to such a provision because he or she is used to being paid at the time the procedures are done. Veterinarians also fear that if they start filing claims on behalf of pet owners and waiting for reimbursement from insurance companies that extra staff may be needed. This will increase their overhead and they will have to raise fees to cover this expense. They see human doctors who have a whole office devoted just to handling insurance claims and they want no part of that. They are also concerned that if they have to wait on reimbursement from the insurance company (MDs have to wait weeks to months sometimes) that cash flow will suffer significantly. In fact, some practice management experts have stated that such a scenario is undoable for most veterinary practices. The other problem is determining in a timely fashion if the disease or problem they are treating is even covered and if so, how much the pet owner will end up having to pay and how much reimbursement they can expect from the insurance company.

Therefore, veterinarians generally prefer the status quo - present day model. Veterinarians are also wary of any model that may resemble “managed care” (networks e.g. HMOs, PPOs, Medicare or Medicaid) that has plagued other healthcare professions. There is a whole chapter in my book on the importance of veterinarians and pet owners avoiding managed care.

Several insurance companies are working to improve their ability to verify coverage and shorten turnaround times between filing a claim and receiving reimbursement – sometimes as short as 24 hours. The filing of claims and receipt of reimbursements are done electronically, therefore, it involves virtually no paperwork and minimal staff time. I know of one company who is working with at least one veterinarian to test such a system. I was told that the veterinarian files all claims – large and small – for pet owners and the reimbursements are deposited directly into the hospital’s bank account.

If insurance companies can reliably put such a model in place, it should overcome most of the objections that veterinarians have with it and put pet insurance within the reach of pet owners who can afford a monthly premium, but can’t come up with thousands of dollars on the front end should their pet develop a serious medical or surgical problem.

Just because your veterinarian agrees to file the claim on your behalf doesn’t mean that you will walk out without paying anything (like you may be used to doing at your own doctor’s office). You will still be responsible for paying your part (deductible, co-pay, and any non-covered expenses), and the insurance company will pay its part directly to your veterinarian. In my mind, this is how it ought to work to allow more pets to be covered. Some of the insurance companies are now offering larger deductible policies and these may be more acceptable by the veterinary community in such a model because you will be paying (and they will be receiving) a larger portion of the bill on the front end (like a deposit).

Until such a model is commonplace, you can ask your veterinarian if he or she will allow you to pay the deductible and co-pay and file a claim on your behalf. If it isn’t an emergency, some companies will pre-certify a procedure and let you and your veterinarian know the approximate expected reimbursement. Your veterinarian would need to send an estimated cost of the diagnostic and treatment plan to the insurance company (the final bill may vary from the estimate). However, you should only expect to be able to do this with large, unexpected bills, and you will have to get the cooperation of both your veterinarian and the insurance company.