Pet insurance in the U.S. is growing, with North American sales expected to exceed $1.1 billion by 2012, offering coverage for various health issues, treatments, and emergencies. It helps pet owners manage rising veterinary costs, ultimately facilitating better care while reducing the financial burden of treatment. Veterinarians benefit as well, as pet insurance enhances client compliance, minimizes accounts receivable, and supports optimal health outcomes for pets.

1. Pet Insurance and
Your Veterinary
Practice

2. Pet Insurance Facts
Less than 1% of Cats and Dogs are
insured in the United States – about
800,000 pets insured in 2008
Packaged Facts estimates North
American Pet Insurance sales will more
than triple in the next five years from
$248 million in 2007 to $1.1 billion in
2012

3. How Pet Insurance Works
1. Get quote & buy policy
2. Waiting period
3. Get treatment
4. Pay veterinary invoice
5. File a claim
6. Receive check

4. Pet Insurance Has Matured
 More companies selling pet insurance
 A wider variety of conditions covered
 The internet facilitates pet owner
education and awareness
“Not your grandfather’s pet insurance any more”

5. Not Managed Care
Client can go to any veterinarian in US
Veterinarian and client determine
treatment protocol – not a third party
No pre-authorization required

6. What Is Covered?
Generally…
Illnesses and injuries
Prescription medications
Surgeries and hospitalization
Cancer treatments
After-hour emergency & specialist visits
Diagnostics, MRI, CAT scans and X-rays
Wellness/routine care (optional)

7. What Is Not Covered?
Generally…
Pre-existing conditions (unless cured)
Congenital conditions (present at birth)
Preventative, elective and cosmetic
procedures
Boarding and grooming
Food, including prescription food
Supplements and vitamins

8. Major Differences Between
Plans
Are hereditary conditions covered?
Are chronic conditions covered after 1st
year?
What is the reimbursement based on?
 The vet bill; or
 Usual, Customary, and Reasonable
charges; or
 A benefit schedule

9. Pet Insurance Plans

10. Why Consider Pet
Insurance?
 Veterinary costs continue to rise
 Accidents and illnesses happen and are
inevitable
 Economic realities of treatment can cause
conflict with the pet bond
 Pet insurance gives pet owners the
ability to afford needed veterinary care
with a manageable monthly premium

11. Procedures (And Their Cost)
Have Advanced

12. Stop Treatment Point
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
<$249 $250-$499 $500-$749 $750-$1000 Over $1000
DVM Newsmagazine, 2006

13. Insurance Raises
the Stop Treatment Point
Amount client can
$500
afford
Deductible $100
20% co-pay $400
Insurance pays 80% $1,600
Stop Treatment with
$2,100
Insurance

14. Savings Account vs.
Insurance
Insurance vs. Savings Account
Savings Account Insurance
$3,500
Amount Available
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$0
1 2 3 4 5 6 7
Years
$35/month premium vs. savings account

15. Advantages of Pet
Insurance
Allows pet owners to budget for veterinary
care
Provides higher limits than most clients
can afford
Can be used for their regular veterinarian,
emergency clinics, referral centers or
when traveling

16. Advantages of Pet Insurance
(continued)
Reduces the need for available credit
Offsets the rising cost of veterinary care
due to better technologies and treatment
options

17. Advantages for Pet
Quicker Owner Response to Symptoms
Increased Owner Compliance
Eliminates Economic Euthanasia
Overall Better Health of Pet
Rex
Relinquished because his owner
could not afford PU surgery

18. With Pet Insurance…
The best possible treatment options are
affordable
Pets receive needed diagnostics and in-
depth care
Better pet health results from greater care
Euthanasia for economic reasons less
likely
Reduced need for veterinary financing

19. Should I Recommend
Pet Insurance?
Pet insurance is the one thing you cannot
buy when you need it the most.
Pet insurance can help your clients
in their time of need.

20. Advantages To Your
Practice
 Increases client compliance with your
recommendations
 Provides clients a ready means of affording
health treatments
 Reduces your accounts receivable
 Eliminates conflict between clients’ financial
limitations and providing the best of care
 Improves pet health and client satisfaction

21. Making Insurance Work
 Pick a limited number of companies to
support
 Train the hospital staff
 Actively educate clients
 Mention pet insurance to every client
 Exam room / lobby materials
 News letters / client communication
 Telephone recordings
 Promote to your clients
 Staple brochures to invoices
 Include brochures in puppy/kitten kits

22. Summary
More companies offering comprehensive
care
Insurance removes the unpredictable
financial strain caused by a large health
expense
Insurance provides opportunity for the
best care
Insurance allows you and your client to
focus on care, not cost

23. NAPHIA
For more information call
Loran Hickton,
Executive Director, NAPHIA
(412) 319-7730

24. Glossary
Coinsurance
The percentage of the costs of services
shared by the carrier & policy owner.
Deductible
A fixed amount of dollars that the policy
owner must pay before the health
benefits begin.

25. Glossary (continued)
Benefit schedule
An itemized list of available
reimbursement amounts for specific
medical diagnoses.
Usual, Customary, & Reasonable
Charges
The charge for health care that is
consistent with the average rate or
charge for identical or similar services in
a certain geographical area.