{"id":3660,"date":"2019-01-07T20:48:27","date_gmt":"2019-01-07T20:48:27","guid":{"rendered":"https:\/\/www.animalhealthfoundation.net\/blog\/?p=3660"},"modified":"2019-01-15T22:04:10","modified_gmt":"2019-01-15T22:04:10","slug":"3660","status":"publish","type":"post","link":"https:\/\/www.animalhealthfoundation.org\/blog\/2019\/01\/3660\/","title":{"rendered":"More Pet Insurance Policies Are Being Sold. But Are They Worth the Cost?"},"content":{"rendered":"
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FROM THE NEW YORK TIMES, JANUARY 4, 2019<\/div>\n<\/section>\n<\/header>\n<\/div>\n<\/div>\n
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YOUR MONEY ADVISER<\/a><\/p>\n

The New York Times<\/h1>\n
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By\u00a0Ann Carrns\u00a0<\/a><\/span>Jan. 4, 2019<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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Americans are increasingly treating their pets as members of the family, feeding them gourmet food, paying for day care and throwing them birthday parties. Family sleepwear sets sold on PajamaGram.com even include matching jammies for the dog.<\/p>\n

So it\u2019s not surprising that an increasing number of \u201cpet parents,\u201d as they are known in the pet care industry, are seeking sophisticated medical treatments for their animals.<\/p>\n<\/div>\n<\/div>\n<\/header>\n

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Enter pet health insurance, marketed as a way to help defray rising veterinary expenses and avoid \u201ceconomic euthanasia\u201d \u2014 the necessity of putting a pet down because the owner can\u2019t afford treatment. More than two million pets in the United States and Canada (most of them in the United States) were insured at the end of 2017, up about 17 percent from the year before, according to the North American Pet Health Insurance Association.<\/p>\n

But consumer advocates say that pet owners should make sure they understand how the policies work before buying them.<\/p>\n<\/div>\n<\/div>\n

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More than two-thirds of households in the United States own a pet, according to the American Pet Products Association. Americans spent about $70 billion on pets in 2017, including purchases of animals, food, veterinary care, medicines and other services.<\/p>\n

\u201cPeople are much more inclined to think of their animals like children, and treat them accordingly,\u201d said James Serpell, a professor of ethics and animal welfare at the University of Pennsylvania\u2019s School of Veterinary Medicine.<\/p>\n

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J. Robert Hunter, director of insurance with the Consumer Federation of America, said pet owners should bring a healthy skepticism when shopping for pet insurance. Purchase of the product is \u201coften motivated by a combination of love and fear,\u201d he said. \u201cSo the buyer may be particularly vulnerable.\u201d<\/div>\n<\/div>\n

Details vary by insurer and policy, but premiums for pet insurance typically depend on factors like the cost of veterinary care where you live and the age and breed of the pet. The average annual premium for \u201caccident and illness\u201d coverage was $516 per pet in 2017, while the average claim paid was $278, according to the pet health insurance association.<\/p>\n

Jeff Blyskal, a senior writer with Consumers\u2019 Checkbook, a nonprofit group that rates services in major urban markets, said pet owners should compare policies with a critical eye. When years of payments are taken into account, he said,\u00a0buying insurance could end up being more expensive<\/a>\u00a0for some pet owners than going without it, if their animal doesn\u2019t require much care.<\/p>\n<\/div>\n<\/div>\n

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Pet policies typically don\u2019t cover pre-existing conditions, Mr. Blyskal said, so premiums are generally lower when your pet is young and healthy. Even if you start early, though, you may end up paying more over time, he said, because some policies raise premiums as pets get older. This can increase costs substantially, he said, and cause owners to drop their policies as the animals get older \u2014 just when they are more likely to need the coverage. Industrywide, the average pet policy is maintained for three years or less, according to an insurer regulatory filing in 2016 in Washington State.<\/p>\n

The expenses tied to pet health coverage usually include not only a regular premium but also other out-of-pocket costs, like a deductible \u2014 an amount that you must pay before insurance begins paying. Insurance may cover less than 100 percent of costs after the deductible, so you\u2019ll still have to pay for part of the treatment. Some policies may cap payments, so ask if there\u2019s a limit.<\/p>\n

Rob Jackson, chief executive of Healthy Paws Pet Insurance, said insurance could protect against budget-busting events costing thousands of dollars. (Healthy Paws said a pet\u2019s age affects premiums at initial enrollment, and also as the pet ages.) The\u00a0Healthy Paws website<\/a>\u00a0cites examples like\u00a0Fridgey the Bengal cat<\/a>, who had a $4,600 hip replacement, and\u00a0Lupa the German shepherd<\/a>, who needed $52,000 in treatment for tetanus exposure.<\/p>\n

One way to pay lower premiums, and possibly get broader coverage, is to buy pet insurance through your employer. Eleven percent of employers in the United States offer pet health insurance benefits, according to a\u00a02018 survey<\/a>\u00a0by the Society for Human Resource Management, up from 6 percent in 2014. Typically, companies offer pet insurance as a \u201cvoluntary\u201d benefit. It\u2019s uncommon for employers to contribute to the cost of premiums, as they do with human health insurance. But insurers may give employees a break on premiums, or offer better coverage, because their marketing costs are lower.<\/p>\n

Employees at Ollie, a specialty dog food company, receive a 15 percent discount on premiums from the insurer Healthy Paws, said Gabby Slome, a co-founder of Ollie. (Ollie also offers workers benefits like \u201cpawternity\u201d leave when they take a new dog home.)<\/p>\n

\u201cWe had a strong belief that pets are a part of one\u2019s family,\u201d she said.<\/p>\n

Scott Liles, president and chief pet insurance officer with Nationwide, said half of Fortune 500 companies offer their employees pet insurance from his company. Nationwide\u2019s employer-based plans now underwrite by species \u2014 canines vs. felines \u2014 but not by age or breed, Mr. Liles said. That means, he said, you won\u2019t pay a higher premium if your pet is older, or if its breed is prone to certain illnesses, unlike policies sold in the open market.<\/p>\n

Here are some questions and answers about pet health insurance:<\/p>\n

Do some animals cost more to insure than others?<\/strong><\/p>\n

Cats are generally less expensive to insure than dogs. The average accident and illness premium in 2017 was about $45 a month for dogs and $28 a month for cats, according to the pet health insurance association. Because some purebred animals are prone to certain health problems, some insurers may charge higher premiums for them.<\/p>\n<\/div>\n