A friend of mine from Louisiana sent me an article about Pet Health Insurance (PHI) that I thought I'd share with readers. There are a few interesting facts and some comments in the article that might interest you.
Pet Health Insurance is growing rapidly. This article quotes a source that shows growth rates of 20% annually from 2003-2007. Those rates are in line with our observations and they may be going up.
One reason PHI is on the rise is that there are more providers entering the market.
PurinaCare is one of the more recent entries and one of the few with high brand name recognition. Almost everyone in the U.S. has heard of
Purina and having a large pet centric company involved has raised the general awareness of of PHI among interested consumers.
Another reason for growth is veterinary healthcare spending. While the rate of inflation for veterinary care is far lower than with human healthcare, it is on the rise. In 2006, consumers spent $24.5 Billion on veterinary care which is twice what they spent ten years earlier in 1996. In fact, veterinary fees went up at an annual rare of 5.5% between 2003 and 2007. Part of that increase is related to overall inflation but part is due to better care. Virtually any diagnostic or surgical procedure available to humans is now available to pets and things like MRI's, CT scans and hip replacement surgery are expensive.
While PHI is growing and many providers will sell you a policy, the article warns pet owners to look at the fine print and be aware what they are purchasing. Not all PHI policies are the same. Some are less expensive than others. They are less expensive because they provide less coverage and lower reimbursement levels.
Here are a few watch outs for consumers...
1. Is your deductible annual or per incident? Paying the deductible each time you visit the vet will give
you a lower monthly premium but you will have higher out of pocket expenses.
2. Is this years illness next years exclusion? Make sure the policy you buy will provide a lifetime of care as long as your pet is enrolled.
3. Are there limits to reimbursement based on complicated fee schedules for each and every illness, accident or surgical procedure? One way to lower the monthly premium is to limit what you will pay for a given illness, accident or diagnostic test.
4. What about hereditary conditions? Some providers exclude them all and others will cover only a small amount for ongoing care.
These are a few of the questions you should ask before you buy. Better to be well informed going in than very disappointed when you have to use your policy.