Greetings! Welcome to the October edition of Dr. Pet Mom’s Delightful Pet Menagerie (DPM) Newsletter. Fall is my favorite season of the year. This month, let’s talk about pet insurance and pet wellness plans. Enjoy!
Pet Insurance or Pet Wellness Plan?
As a responsible pet parent, you’ve probably thought about buying pet insurance. How much do you know about pet insurance? What do you know about a pet wellness plan?
I like to think I was a responsible pet parent with my boy, Oscar. He was an older kitty when we adopted him. I didn’t think much about pet insurance…
Call me a doofus, first time cat parent who thought that pet insurance was a luxury. Oscar was healthy until his senior years. His health care was expensive, but he was worth every penny.
Now with my new adopted kitty Mingus, it’s time to think about pet insurance and his long term health. You can find a plethora of pet insurance options and wellness plans and I’m happy to start the journey.
Pet insurance is a health care policy for your pet. Pet wellness plans are a stand alone or an add-on to your pet insurance policy. And yes, these pet healthcare plans are very different.
If you’re confused about pet healthcare, you are not alone.
Pet Healthcare Statistics
Here’s an overview of pet healthcare statistics from 2024.
- In 2022, routine veterinary visits cost an average of $250 for dogs and $198 for cats. In comparison, the 2022-2023 cost for a surgical veterinary visit averaged $472 for dogs and $232 for cats yearly.
- In the US, from 2019 to 2023, the number of insured cats and dogs grew by 126% with almost 5.7 million cats and dogs insured in 2023. This growth reflects nearly 5% of the pet population.
- The yearly cost for pet insurance is $720 annually for dogs and $384 for cats. The estimated cost for pet insurance is $46 each month. Pet owners in Louisiana and Alabama pay lower premiums ($47 for dogs and $27 for cats), while Connecticut pet owners pay more ($65 for dogs and $43 for cats).
- Between June 2023 and June 2024 veterinary care costs increased by 6.4%. This increase was second only to grooming, boarding, and training at a 6.3% rise.
- Thanks to Gen Z, the global veterinary telehealth market will grow by almost 20% in 2024, reaching $4.48 billion up from $3.74 billion in 2023.
- More than 30% of pet owners avoid taking pets to the veterinarian due to the cost. And even with insurance, 22% still avoided the veterinarian due to cost. Almost 29% of all owners couldn’t pay for emergency care.
- Dog owners spend 31% of their annual expenditures on veterinary care, compared to cat owners who spend 26% of their budget on veterinary care.
- Based on inflation, pets living longer, and quality of life, pet owners spent $38.3 billion on veterinary care and products in 2023. And American consumers spend their money in areas like routine check-ups, surgeries, and medications.
Pet Insurance
Ok, here we go! Pet insurance is a pet health care policy that covers some medical expenses, accidents, illnesses or emergency care.
Pet insurance works like any other insurance plan: You pay a monthly premium for your policy, pay your veterinary bill up front, and submit a claim for reimbursement to the insurer.
The amount of your monthly premium depends on your pet’s age, breed, where you live, and your choice of coverage.
Coverage can also include medications, surgeries and hospitalizations. Your policy can include deductibles (fixed out-of-pocket amount), limits or caps on how much can be reimbursed, or co-pays (your share of the service fee after you pay the deductible).
You can choose a pet policy that will fit your budget and your pet’s health condition.
Sounds like a simple idea. But like any health insurance, pet insurance has limitations.
For example, pet insurance does not cover:
- DNA testing
- Pregnancy
- Experimental treatments
- Breeding
- Preventive procedures
- Health conditions due to fighting, racing, neglect or cruelty
Three Types of Pet Insurance
1. Accident and illness coverage: Covers broken bones, ingesting poisons or other accidents.
2. Comprehensive plan: Covers chronic conditions, prescriptions, accidents, illness, and treatment for common illnesses.
3. Wellness plan: Covers routine and preventive care, such as vaccinations, flea/tick treatments and annual exams.
Pet Insurance: Pros
The pros of pet insurance includes:
Financial support for unexpected veterinary bills: Pet insurance can significantly reduce the financial impact of emergency veterinary care, wellness care, and surgeries.
Customizable coverage options: You can pick add-ons to tailor a policy that fits your pet’s needs within a fixed budget.
Employee benefit: Many employers are adding pet insurance into employee benefit packages to make pet insurance even more affordable and accessible.
Pick your veterinarian: Pet insurance allows you to seek treatment from any licensed veterinarian or specialist in a solo practice or network.
Pet Insurance: Cons
The cons of pet insurance includes:
Out-of-pocket payments: The reimbursement model for pet insurance means that you have to pay costs up front, including co-pays and deductibles. Then you submit a claim to get your money back.
Premium costs: Premiums are lower for younger, healthy pets, but increase as your pet ages. In time, this process could outweigh the financial benefits if your pet remains healthy.
Underutilized benefits: You might even see a lower return on investment if your pet remains healthy. This means that you might pay for veterinarian care that you don’t use.
Coverage exclusions and limitations: Pet insurance policies often come with exclusions and limitations, including pre-existing conditions, routine wellness care and special treatments.
Pet Wellness Plans
A wellness plan is also called a “routine care” or a “preventive care” plan for accidents, illnesses, or other preventative care for the future health of your pet.
Routine care covers:
- Dental cleanings
- Annual checkups
- Feline FELV (Feline leukemia virus ) or feline FVFCP (Feline Viral Rhinotracheitis, Calicivirus, and Panleukopenia)
- Fecal tests
- Deworming services
- Canine heartworm
- Canine rabies
- Lyme disease
Wellness plans come in a variety of flavors as an add-on to your pet insurance, or as a stand alone plan.
Other options include a plan based on a reimbursement rate or a defined benefit schedule. And the insurance provider may have different tiers of coverage for a wellness plan.
Wellness Plan: Pros
The best reason to buy a wellness plan is peace of mind. Planning means that your pet will be healthy and happy. Also, your veterinary care givers will monitor your pet’s health and quality of life.
Budgeting to save you out-of-pocket costs. A wellness plan will reduce the stress of emergency veterinary care or routine visits. The plan covers many healthcare services for your pet.
Preventive care. Early detection of preventable illnesses or conditions is usually the best approach to good pet care. Regular veterinary checkups favor better health management and treatment for your pet.
Discounted veterinary visits. Many veterinarians offer discounts for routine services. Ask your veterinarian about any discounts offered through their wellness plans.
Plan your veterinary visits. Your wellness plan gives you easy access to pet health care services. Regular veterinary visits will improve the well being of your pet.
Wellness Plan: Cons
Confusion about coverage. Pet parents can easily confuse pet insurance with a pet wellness plan. Understand how to budget for additional costs when you choose a wellness plan.
Limited use. Wellness plans are specific to a hospital. Emergency or specialist pet care are not covered under a wellness plan.
Wellness plans sound like a sales pitch. Many veterinarians offer a wellness plan. These plans may sound like a sales pitch, but wellness plans are an added benefit to the veterinary practice.
Network or customized wellness plans. Some veterinarians practice through a network that offers wellness plans. Your plan will apply to any practice within the network. You should carefully decide between a solo or a network of veterinary practices.
Pick One or Both
How do you choose between pet insurance and a wellness plan?
First of all, talk to other pet parents. Choosing between pet insurance and a wellness plan is confusing enough. An insurance policy can also include a wellness plan but your monthly premiums will be higher.
Also talk to your veterinarian. A wellness plan from your veterinary hospital or clinic can offer more services and care for multiple pets at the same clinic.
Finally, keep in mind that 82% of pet insurance policies do not cover routine pet care. But pet insurance providers may offer a complementary wellness plan.
Your pet parent due diligence will serve you well!
Closing Thoughts
Now you know that pet insurance gives you financial security. Insurance covers emergency care, accidents and injuries which can cost from $800 to $1,500 or more.
Wellness plans work as a budgeting tool to cover the cost of routine pet care. These plans control your pet care by managing your monthly payments. But a wellness plan alone is not an alternative to pet insurance.
In the end, I picked one of each. Mingus has pet insurance to cover emergency treatment, and a wellness plan for routine care. His veterinarian offers discounts and services under a wellness plan that includes grooming and routine care.
I hope your find the perfect plan to keep your pets healthy and happy!
Thanks for stopping by!
Dr. Pet Mom
“Thousands of years ago, cats were worshiped as gods. Cats have never forgotten this.”
–Unknown
2024 Book Update
This season has been a challenge with hubby’s heart transplant and my transition into a full-time worker bee and caregiver. Publishing my book, Dr. Pet Mom’s Delightful Pet Menagerie (DPM) Newsletter, is still on my radar. My graphic designer is reviewing the book cover. Final steps are in process.
Thanks, Dr. Pet Mom, for a very clear explanation of a very complex topic. Another wonderful column!
You’re welcome, Lou! Thanks for stopping by 🙂