If you are the typical person in America today, you probably have several different types of insurance. If you own a home, you likely have homeowners insurance. If you own a car, you likely have auto insurance. You may have life insurance, disability insurance, or health insurance.
Why do you need all these types of insurance? It is because not many people are self-insured. For example:
• If your house burned down, could you personally write a check to have it rebuilt?
• If you had a wreck and your car was dented, could you pay out-of-pocket to have it repaired? If it was totaled, could you personally pay off the loan in full and then purchase another car?
• If you died or were disabled, would your family be able to carry on and pay all the bills without your income?
• If you became seriously ill and required surgery and an extended hospital stay and the bill was $100,000, would you be able to pay it?
We purchase insurance when a potential need could arise that we personally could not financially handle.
If your pet was sick or injured and required surgery and an extended hospital stay and the bill was $10,000, $5000, or $3000, could you afford to pay for it? If not, then what are your options?
Some people think that if they are faced with an unexpected, substantial bill for the diagnosis and treatment of their pet's injury or illness, then their veterinarian will just "bill" them. While veterinarians are good at taking care of the healthcare needs of their client's pets, they aren't good at being a banker or loan company. Therefore, most veterinarians no longer offer in-house credit to clients. It is not the veterinarian's responsibility to extend credit to clients. It is the responsibility of the pet owner to be prepared to pay for the healthcare needs of their pets.
Veterinarians generally accept all major credit cards. More and more veterinarians are offering 3 to 12 month no-interest payment plans through companies like CareCredit -(carecredit.com). CareCredit offers a credit card dedicated to healthcare expenses. You can use the credit card for medical, dental, vision, and veterinary expenses wherever it is accepted. Check with your veterinarian and local animal emergency center to see if it is accepted. Many of our clients have a CareCredit card that they use solely for their pet's healthcare expenses and sometimes even their own. You can apply for one of these cards online at their website.
Many people who cannot come up with $3000 at one time can afford to pay a monthly premium for insurance that will help them pay for large unexpected veterinary bills. I've seen people recommend putting money that you'd spend on health insurance premiums in a savings account -- out of which you'd pay veterinary bills. This is an admirable idea and something every pet owner should do whether they purchase pet health insurance or not. If you purchase pet health insurance, you will still have to pay the deductible and co-payment out-of-pocket. But, suppose you open a savings account this month with the intention of saving $50 a month, and next month, your pet gets sick or injured and requires surgery and hospitalization to the tune of $3000. There's a $2950 gap between savings and actual expense. What do you do then? You see, in the real world, this does actually happen. I've had clients get a new puppy and a month later be faced with this situation. By the way, the best time to purchase pet health insurance is soon after getting a new puppy or kitten.
Most pet insurance policies today require the pet owner to pay their veterinarian, then file a claim and get reimbursed by the insurance company -- usually within 2-4 weeks. What if you aren't able to pay $3000 up front and then wait for reimbursement? Frequently, pet owners will pay the bill with a credit card, file the claim, and hopefully by the time they have to pay the credit card bill, they've received the reimbursement check from the insurance company.
Another option -- most companies will pay your veterinarian directly, but as stated above, this is not the normal procedure. You'll need the approval of your veterinarian and the insurance company to do this. This type of arrangement should only be used for large, unexpected expenses. Don't expect your veterinarian to do this every time you visit his or her office. So far, pet insurance companies have kept the claims process simple, and veterinarians and their staffs aren't expected or required to devote time to filling out claim forms, filing claims, corresponding with insurance companies, etc. like your medical doctor. The more time veterinarians and their staffs have to devote to the pet health insurance claims process, the higher veterinary fees will climb to offset the additional overhead expenses.
If the company makes a payment to your veterinarian, you will still have to pay your veterinarian out-of -pocket for the deductible and co-pay and any expenses that aren't covered under the policy. A simplified example of how this would work if you had a $3000 bill is as follows (assuming all expenses were covered under the policy):
If your policy has a $100 deductible and 10% co-pay:
Co-pay = $3000 - $100 = $2900 x 10% = $290
You pay $100 (deductible) + $290 (co-pay) = $390
Insurance company pays $3000 - $390 = $2610
Another option is a discount plan such as PetAssure. Such companies usually require a fee to join and then the pet owner receives a discount (e.g. 25%) on most veterinary services at participating hospitals. Unlike insurance where you can go to any veterinarian, you are limited to veterinarians who participate in the program. The veterinarian with whom you have a relationship may not participate or be willing to participate in such a program, and if your pet has an emergency or is referred to a specialist, they aren't likely to participate in such a program.
Is pet health insurance for you? If you are faced with a substantial healthcare expense for your pet, do you have the means to pay for it? In other words, are you self-insured? I believe that more and more pet owners will purchase a health insurance policy for their pet in the future because technology and the costs of delivering quality healthcare to pets has outpaced the ability of many pet owners to pay for it. While pet owners and veterinarians alike will benefit by third party payment to help pay for the healthcare of pets, I'm convinced the real winners will be the pets.
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