How often have I scribbled posts on the virtues of pet insurance, only to be chastised by you, dear readers, for your inability to consider it a practical alternative for those who live paycheck to paycheck the way many of us increasingly do (gasoline, Summer camp and orthodontics, anyone?).
If the goal of pet insurance is to save your pet’s life in a crisis, you say, pet insurance helps you not at all when you’re standing in front of the receptionist with an estimate you must pay before services are rendered.
Consider my Sophie Sue’s recent visit to the regional specialty hospital. Though I received a hefty professional discount for its services, I was still unable to pay my [nonetheless sizable] bill in full without calling for backup (i.e., I borrowed money from a friend).
In this case, you inform me, pet health insurance would not have helped me. The only thing that could have delivered me from the evils of nonpayment, you argue, is a friend with a sizable savings account.
Well…not always…if what I’m told is true. I’ve been informed that some pet health insurance companies will work with pet owners so they can be pre-approved for a procedure and the hospital paid at the time the services are rendered.
If it works this way, I’m sure it’s a nightmare to organize. And it sure won’t help at midnight in the ER. But what else can the financially-overextended among us do?
Last week I had lunch with a Veterinary Pet Insurance (VPI) representative to discuss new insurance products on the horizon. She was sanguine on the prospects for high-deductible insurance from every pet health insurance carrier before too long. And she answered my question on your issues vis á vis immediate reimbursement.
It seems most insurance companies have indeed identified this as a problem. Though the delayed-reimbursement mode is currently the norm, pet health insurance companies are considering new ways to reimburse veterinary care providers more directly.
Ideally, your midnight emergency would involve a call to the pet health insurance company, which would assure your veterinarian that you are covered for up to X dollars for the kind of emergency on your estimate and that they promise to send a reimbursement check in X days.
Two problems: 1-Some vets don’t like it—it smacks of managed care and introduces more complexity into our billing practices (though we’re still getting paid in a timely fashion so I don’t know why we would mind). And 2-pet health insurance companies fear the fraud and administrative vagaries that may accompany this.
So you see, dear readers, life as a cash and credit-strapped single mom still promises to be difficult when it comes to pet health expenses, regardless of my pet health insurance status. Though I look forward to the innovations that will surely come and make things easier, for now I guess I'll still have to rely on the kindness of strangers...and my backups…
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Patty - I've always wondered why veterinarians have been scared of managed care in veterinary medicine. Managed care is a voluntary proposition - veterinarians have to join the network, no one can force them. I'm curious why DVMs persist in thinking that pet insurance is going to force this upon them? Just say no.
We are willing and able, and I'm sure other companies do this too, to reimburse the veterinary practice directly if the client and DVM agree beforehand. Surprisingly, few take this option. Maybe they want the miles for their credit cards? :) But with claim turnarounds in 10 to 15 business days, the many who pay with credit will get a check back before their next bill is due. This seems to work for all the stakeholders - pet parents, DVMs, and pet insurance companies.
Alex June 22nd, 2008 10:46:00 AM
I hear you. I just finally paid off a $5k loan my very very VERY good friend gave me for my last dog's surgery and radiation treatment (he passed away 15 months ago). And I got the "courtesy discount" too. I couldn't have done it without her kindness.
I wonder what would the monthly cost be for the insurance you're talking about, when it's not for a brand new kitten or puppy? I worry that it would still be cost-prohibitive for most existing dogs who develop expensive problems.
This may be my inexperience showing, but I wish the vet med world would become like the human healthcare world... with more insurance and more social support for preventive care, more people could have their pets treated and might be able to avoid serious problems. I wonder if more payments would be made in general with managed care; I know that I am lucky enough to have health insurance, and even with the copays and set rates of reimbursement, I get the treatment I need and my doctor gets paid. It's less that she would get with cash only, but it's guaranteed.
anonymous in boston June 22nd, 2008 12:09:00 PM
I think the managed care "fear" comes in to play when the vet feels the insurance provider has the power to pay for "this" treatment or diagnostic but refuses to reimburse for "that" alternative. The vet may feel that his/her medical expertise is being stifled, called in to question or ignored for the sake of the insurance program's profitability. This, to a large extent, it what has happened with human insurance plans and physicians. A great deal of the decision-making process has been removed from the doctor/patient and taken by the provider.
As someone who has been in the insurance industry for 40+ years, I have seen this trend grow and become the elephant in the room. However, if pet medical insurance can be structured to allow the veterinarian and pet owner to pursue diagnostics and treatments they feel are best for the situation, then I am in favor of the pet insurance industry moving toward a pre-approval and direct payment model.
Moira June 22nd, 2008 02:35:00 PM
What about CareCredit? I recently opened an account for a tooth implant. The out of pocket cost is $3000. I have no interest for 18 months. If the bill is not paid at the end of this term the interest will be pro-rated. You can use these cards for vet visits, dental, plastic surgery...Maybe they aren't available at all offices.
Kelly June 22nd, 2008 03:29:00 PM
The main problem I see with insurance is that pre-existing conditions make half of my cats uninsurable. My 19 year old has CRF and issues from a stroke, my 14 year old has acromegaly, and my 4 year old has diabetes insipidus. Think any pet insurance company is going to take them on? Not without a hefty yearly premium that I could never afford to pay as a single mom to 2 who was just laid off and can't even afford health insurance for herself.
The *idea* of pet insurance is wonderful...but I think it tends to leave out some of the animals & people who might need it the most.
Just my two cents...
Carolynn & Fletcher June 22nd, 2008 03:43:00 PM
I could have sworn I heard about a pet health credit card, but now I can't find the information. It was a credit card tied to a pet health insurance plan, where you pay everything on the card initially, and the the insurance company then checks what of those things are covered, and anything that's not covered you pay off like a typical credit card with typically high interest rates.
zandperl June 22nd, 2008 04:20:00 PM
I second the CareCredit option - I have one available for $3500, and it was not difficult to get approved. Although I don't have pet insurance, it would seem a combo of the two would be perfect - pay the bill up front w/your CareCredit, and then pay off the CareCredit w/the insurance money? It seems viable to me - everyone gets paid, care is not delayed, etc.
anna June 22nd, 2008 07:08:00 PM
Carecredit has worked well for me in the past! I was 20 years old and brought my parent's dog to the emergency vet and was given a $2000 bill. I couldn't pay it and nobody in my family had the money, so I called carecredit and we worked it out. I made sure to pay it off within the alloted no interest time period, and it worked out well.
Tara June 22nd, 2008 09:23:00 PM
My 8yr old, 32lb mutt recently tore her CCL... which is one of the things specifically excluded from coverage in my pet insurance policy. (sigh)
John June 22nd, 2008 10:36:00 PM
I have VPI insurance on Agadore, my standard poodle...got it when he was 3 months old. I pay $22 a month and have the Superior Plan. Agadore will soon be 5, and I never used it until about a month ago. Agadore had some back problems- wouldn't move... a trip to the vet and some Metacam later, I paid $168. Worth every penny. Got my insurance check within 10 days minues the $50 deductible. I am TOTALLY happy with VPI and would recommend it to anyone.
I have an established relationship with my vets. Been going there for over 15 years. There have been times they held checks for me.
I was housesitting for friends, and they had an elderly lab. She collapsed in front of me. Turns out, she had gotten preggers, they took her to a vet who gave her some type of pill that made her abort the pups. She then got a horrible uterine infection. I took her to my vet, called the owner, and decided to go ahead with treatment. My vets treated her with no money up front based on our pre-existing relationship. Then, after the owners appeared, she allowed them to make payments for nearly a year to pay the bill. And yes, the dog survived.
So, while it's good to have insurance, I think it's more important to have a regular vet who knows you, your animals, and your ability to pay, even if it takes payments.
agadoresmama June 23rd, 2008 12:34:00 AM
Yeah, I think Care Credit is the way to go. I initially got the Care Credit for a rather substantial dental bill, and it wasn't until later that I realized it could be used for vet bills also. As long as the charge is $300+ there's no interest. Can't beat that. I also think anything other than major medical w/ high deductible for pet insurance is a waste of money. You'd be better off putting the money you'd spend on the fancy pet insurance into a high-yield savings or money market account and going out of pocket for the smaller stuff and the preventative care. Also, people should check their local animal services for low cost options. Miami-Dade animals services has tons of low-cost options, and I'd imagine most other metro areas would as well. I think PetCo also has programs for low cost preventative care.
Chip June 23rd, 2008 10:57:00 AM
I also meant to say I've not seen any pet insurance that offers a decent major medical/accident plan. In fact, from my research it seems most of these insurance plans are pretty much worthless in terms of major medical coverage. Maybe there is a plan I've just not run across, so please share if you know of one. I'm talking something along the lines of $10K/year coverage, with a high deductible, and no max per incident B.S. $1500-2000 wouldn't break me. It's those $3000-5000+ bills that I want to be covered on.
Chip June 23rd, 2008 11:39:00 AM
@chip: There are two companies offering major medical pet insurance - Embrace (my company) and Purina (new entrant). Embrace has a $500 deductible, Purina has $500 and also $1,000. These are per-annum deductibles too, which work better with scenarios like major medical where a number of visits are contemplated.
A lot of the misgivings you have about pet insurance are things we hear constantly. I encourage anyone who is interested in learning more about the different pet insurance plans to visit http://www.petinsurancereview.com
The Pet Insurance Review site is not run by any pet insurance company.
Alex June 23rd, 2008 12:26:00 PM
The CareCredit/Pet Insurance scenario that was mentioned above does work. I have had VPI for about 5 years now and it has worked out perfectly for me. When my Great Dane needed surgery for Bloat, I had to open a CareCredit account because I didn't have the $2,800 up front to pay the bill. After filing the claim with VPI, I received a $2,200 check within 2 weeks, and was obviously happy. I paid $1,800 back to CareCredit, then pocketed the remaining amount for other expenses. It's been very easy making my monthly payments to CareCredit now thanks to the insurance. I'm telling you, trying to put money away in a savings account each month does not work for most people.
Mike June 23rd, 2008 06:01:00 PM
I work for the American Animal Hospital Association (AAHA) and we recently launched a Seal of Acceptance program for high-deductible low premium pet insurance plans. We have a brochure online (it's free) that helps pet owners plan for meeting the cost of pet care. Here is a link for more information http://www.healthypet.com/sealofaccept.aspx.
Jason June 24th, 2008 12:01:00 PM
Mike - No offense dude, but that's a lame excuse. Anyone can save money. Even if it's only $20 a month it adds up (look up the concept of compounded interest). You've got to save money, and there's no legitimate excuse not to.
Jason - thanks for the link.
chip June 24th, 2008 09:04:00 PM
Chip: I agree. There's no legitimate excuse not to do it if you have it but I agree with Mike. It doesn't work for most people. Most of us are too busy trying to pay down the credit cards to escape the BIG interest fees to worry about the *piddly* interest we're going to earn on our $20 a month.
Dr. Patty Khuly June 25th, 2008 08:05:00 AM
when i adopted my kitten in 2003 i got pet insurance. i wanted to ease my mind in case something big did happen. just to be safe. well a year and a half later she was diagnosed with HCM (enlarged heart). this is a life long illness and something that needs minimum twice yearly echos with a cardiologist. fortunately her health insurance covers most of the bill. the only time i can say the insurance company didnt pay well was when she went in due to coughing (not heart related, turns out she also has asthma). that bill was right around $1200 and insurance only covered less than $300. still that was $300. i have a credit card just for belles medical expenses and i use that and get reimbursed from her medical insurance and pay off the card. it has worked well for me and i am not faced with not being able to pay for her care which to me is unthinkable.
katy June 26th, 2008 04:24:00 PM
just a thought - as an emergency vet - i see lots of people in dire emergency situations without finances that DO NOT qualify for care credit. something to think about - not everyone is eligible to receive assistance that way.
homeless parrot June 26th, 2008 10:23:00 PM
Sorry, but I have to say thumbs down for Care Credit. Many of the financially strapped clients in our area do not have *bank accounts*, much less a credit card. These people rarely qualify for Care Credit.
Michelle Schwab June 29th, 2008 08:36:00 AM
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