Pet insurance helps prevent enormous costs, sad choices

CHICAGO — When Jeremy Reis, 34, got Bodhi last summer, he immediately took out a pet insurance policy on the yellow Labrador puppy. That wound up being a wise decision.

Within the first year, Bodhi was rushed to a veterinary emergency room after he swallowed a teacup, and he later chewed the cord on an electric blanket, got a sizable shock and rang up a $1,000 doctor bill.

Reis' insurance policy covered 80 percent of the costs, more than making up for the roughly $50 per month he pays for the plan.

"It's nice when something does happen to be able to have some coverage like this," Reis said.

Once unheard of, pet insurance is slowly catching on in the United States. Many veterinarians now routinely suggest that their clients at least research companies that offer such coverage.

'Preventing an enormous cost'

Typically, pet owners pay a monthly premium. As their pet needs veterinary services, they pay the bills upfront then submit them for reimbursement. Some plans cover what in human terms are considered "well visits," including vaccinations and checkups. But many cover only costs associated with a pet's illness.

While some who have purchased pet insurance have run into the same hassles that come with human health insurance — coverage denials based on pre-existing conditions, disputes over reimbursements — the two types of insurance are notably different.

"Pet insurance is, by law, property casualty insurance," said Laura Bennett, who runs Embrace Pet Insurance and also writes a blog that advocates for the industry as a whole.

Bennett said only about half a percent of American dogs and cats are insured, while in England the figure is more than 25 percent.

"It just hasn't quite caught on here yet," said Bennett, whose company is based in Ohio.

First off, she said, pet insurance shouldn't be viewed as a way to save money: "It's about preventing an enormous cost in your life. Do you aim to save money when you buy insurance for your car? No," she said.

Bennett said one reason she and many pet lovers, as well as a growing number of veterinarians, like the policies is because they can make it easier for a pet owner to pursue potentially life-saving treatment for their animal.

All plans not created equal

Even with pet insurance, hassle-free coverage is no guarantee. When Chicago lawyer Nicole Abbott learned that her company offered pet insurance as part of its benefits package, she immediately signed up her beloved pugs Bella and Chooch.

At the end of last year, Chooch developed an unusual type of stones in his bladder, requiring $500 worth of testing and a $1,200 surgery.

When Abbott sought reimbursement, the insurance company denied her claim, saying Chooch — who previously had problems with routine bladder stones — had a pre-existing condition. A note from her veterinarian saying the two bladder problems were wholly unrelated did no good.

"I tried everything, and they wound up saying I'd have to appeal to the state agency that oversees insurance," Abbott said. "I'd spend hours at that point, so I just said, 'Forget it. It's not worth it.' "

Bennett has heard stories like Abbott's many times before, and she agrees that the plans are not all created equal.

"Just like anything, sometimes you get what you pay for, sometimes you're not getting what you think you're getting," Bennett said. "You need to research the plans and know the details."

Tips for buying pet insurance

The primary purpose of pet insurance is to protect the consumer from major, unanticipated veterinary bills. Some plans cover routine care, but insurance should be looked at mainly as preventing you from having to decide whether you can afford life-saving treatment for your pet.

• There is a wide array of plans. Some cover routine care like vaccinations and heart worm and flea prevention. Some cover accidents, but don't cover illnesses like cancer. It's important to fully research the plans to find what best fits your needs.

• Unlike human health insurance, pet plans don't require that you visit specific veterinarians. Pet insurance companies will take claims from any licensed veterinarian. The policyholder always pays out of pocket first and then seeks reimbursement.

• It will never cover a pre-existing condition. That's why veterinarians recommend that if you're going to get pet insurance, you do so when your pet is a puppy or kitten. The longer you wait, the more pre-existing issues you'll have to deal with.

Sources: petinsurancereview.com and Chicago Tribune reporting

Pet insurance helps prevent enormous costs, sad choices 08/23/10 [Last modified: Monday, August 23, 2010 7:20pm]

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