Pet insurance- the good, the bad, the somewhere in between

I admit I am biased about pet insurance. I like it, mostly. Clients who had it were, in my experience, much more likely to approve necessary treatments. That dog with a case of happy tail who wagged it so hard and so fast he got a nasty deep infection that ended up necessitating a partial tail amputation? Insured. Hit by car? Insured. From my perspective, it allowed owners to focus on the pet’s immediate needs and get them taken care of.

I also liked it because I didn’t have to do anything to get it taken care of, other than fill out a brief form.  The owners paid me upfront, and were reimbursed by their company after the fact. If the owner and the insurer had a disagreement about what should or should not be covered, it wasn’t something I had to get involved in. It was nothing like human medicine. The summer before I started veterinary school, I actually worked the front desk in an internal medicine MD practice and good lord, those staffers spent probably 33% of the day dealing with insurance issues.

Source: Trupanion.com

Source: Trupanion.com

Just a few years ago, I could list three pet insurance companies, tops. Now there’s almost too many to count, with good policies and bad policies and fine print a mile long and exclusions even longer, especially if you have a bulldog in which case you might as well just get a second job.

Some pay a flat percentage of your bill. Others use benefit schedules, and specify exactly what amount they will pay per procedure. Most reimburse you, but I know of at least one that is rolling out a program that will pay veterinarians directly. Some cover preventive care. Some cover accidents. Some cover breed related illnesses, and others don’t. Tooth extractions? May or may not be a pre-existing condition. WHO KNOWS.

It’s gotten so confusing, even for me, that when people ask me what I think all I can say is, “Yes, go for it, but with caution.” Caveat emptor. But even then, even knowing all there is to know and asking all there is to ask, I’m hearing more and more people tell me they just spent five hours on the phone with an insurance rep trying to figure out how a newly diagnosed endocrine condition counts as “pre-existing.”

If this sounds familiar, that’s because that’s what all of us have done with our health insurers at least once, right? It’s confusing, and getting even more so the more players that enter the field. All companies are not created equal. I think most people completely understand the need for exclusions and limits, but for goodness sake let people know when they sign up what, exactly, they are signing up for.

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While lawmakers in California had hoped that pet insurance would fall under the auspice of state insurance regulators, it hasn’t happened, and people with complaints have found they were pretty much out of luck. Fortunately, a new bill that already passed the legislature and is headed for the governor’s desk should give consumers a good deal more protection.

AB 2056 will make California the first state in the nation to specifically pass regulations about the pet insurance industry, separate from its current designation as miscellaneous property and casualty. It specifies the need for clear language about co-pays, exclusions, waiting periods, and caps- all the stuff people run into issues with now.

This is good news for everyone: the excellent insurance companies out there whose reputation is being sullied by the shyster groups, veterinarians who are able to better care for pets, and most of all the clients and pets who stand to benefit from better access to care.

So let’s hear it: what’s been your experience lately? Have you been blindsided or pleased with your insurance coverage?

Pawcurious: With Pet Lifestyle Expert and Veterinarian Dr. V.

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