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To Insure
or Not To Insure?
A Dog & Kennel Special Report
By Rhys Morrison
What can you do if your pet has a serious illness or accident?
Veterinarian medical technology has paralleled that of human
medical technology in terms of increasing sophistication over
the past 10 years. But how can you pay the bills? It's no
cheaper for your dog to get medical treatment than it is for
you.
Pet insurance
may be a good option for you. It became available in the United
States in 1982, with the formation of a California-based company
called Veterinary Pet Insurance (VPI). It's been a bumpy road
since then; about 30 different pet insurers came and went
between 1982 and 1998. Other companies sprang up that still
survive today, VPI included, offering a multitude of plans
and prices to protect your dog's health and well-being and
your peace of mind.
Even though
we are a nation of animal lovers, pet insurance hasn't caught
on in a big way here. According to the most recent statistics
only about one percent of pet owners in the United States
insure their animals, compared to about 19 percent in England
and 49 percent in Sweden. But given the advances in medical
technology, including everything from magnetic-resonance imaging
scans (MRIs) to bone-grafts and advanced cancer treatments
that are now available for dogs, it's worth looking into --
especially in case of catastrophic accident or illness.
How Does It Work?
Pet insurance
works a lot like people insurance does. There are traditional
Blue Cross/Blue Shield-type plans where you pick the veterinarian
of your choice for services, pet HMOs and even discount clubs,
where for an annual fee you get a discount on veterinarian
services and animal health and grooming products. Unfortunately,
like people insurance, most pet insurance policies involve
a lot of fine print, including coverage levels, waiting periods
for policies to take effect, exclusions, deductibles, payout
caps per incident, per year and per ailment, and extremely
limited coverage for older dogs, so do your homework before
you buy. Ask your veterinarian. He or she may offer a locally-based
discount plan for pets, which might be better for you than
one of the bigger plans, depending on both your financial
situation and the kind of dog you own.
Some Glitches in the Bureaucracy
Frequently,
congenital and hereditary illnesses, as well as pre-existing
conditions, are not covered by pet insurance. So if you have
a large dog and it develops hip dysplasia, you might be out
of luck. Talk to several companies before you buy. Some will
insure shar-peis, which are notorious for hereditary problems,
with accident-only coverage. Sometimes a 20 percent surcharge
is added for large-breed dogs. Ask about these things. There's
also some question as to what constitutes a pre-existing condition.
One Seattle man bought pet insurance for his newly acquired,
healthy 1-year-old chow/husky cross. He sent his check to
the insurance company in late January; the policy was due
to take effect in mid-February. A few days before the policy's
effective date, he phoned his veterinarian to inquire about
a change in the dog's diet. A day after the policy went into
effect, the man took his dog to the vet because the dog had
developed an irritating skin condition and a sore on her stomach.
The insurance company refused to pay for the examination and
treatment, based on the fact that the man had phoned the vet
a few days before the policy went into effect; it was ruled
as a pre-existing condition because of the telephone diagnosis
alone. This was not a happy experience for the beleagured
owner. Make sure you find out what the waiting period is for
your pet's insurance coverage; also ask if a telephone call
to a vet before the policy takes effect would count as a diagnosis.
Nearly
all companies' premiums are based on your dog's age, and some
policies will insure dogs for accident-only coverage after
they reach the age of 8 or 10 years. Find out before you buy.
Elderly dogs are far more likely to be stricken by cancer
than young ones, and this is one situation where insurance
can make the difference between life and death for your pet.
Some Other Questions to Ask
Will the
insurer cover routine wellness care, such as inoculations
against distemper, rabies and other diseases? What about testing
and treatment for heartworms? Dental and eye care? Does the
policy cover neutering or spaying costs? Cesearean sections?
Nail trimming and grooming? Flea and tick control? Does it
pay for prescriptions? Some insurance companies will do these
things, but only if you add on a"wellness rider" to your existing
policy, the cost for this additional protection generally
runs about $100 per year.
What are
the deductible levels on the policy? Is there a lifetime limit
on payouts? What are the annual caps on payment? What are
the caps for specific illnesses and specific incidents? For
example, if the vet charges $1000 for mending Rover's broken
leg, and the insurer's cap on bone fractures is $500, you'll
have to pay that extra $500 out of your own pocket. Can you
pay for the policy on a monthly basis? Will you get a discount
for insuring extra pets? Are you limited to the insurer's
choice of veterinarians, or can you choose your own? How long
does it take, on average, for a claim to be processed?
Costs for Traditional Plans
Let's
look at two of the larger traditional-style insurance plans
-- where you go to the veterinarian of your choice -- available
in most states, VPI and Ohio-based Petshealth Insurance Co.
Each offers three levels of insurance coverage for your dog.
The first, called Basic by Petshealth and Gold by VPI, includes
coverage for accident, illness, non-elective surgery and hospitalization,
less deductible. Depending on the age and sometimes the size
of your dog, VPI charges $101 - $146 for this plan; PetsHealth
charges $120 - $144. The mid-range plans, called Value by
PetsHealth and Advantage PLUS by VPI, cost $230 -$276 and
$171 - $251, respectively. The mid-range plans offer some
preventive health care screening services like testing for
heartworms, as well as basic accident and illness coverage.
PetsHealth has a top-level plan called Choice, costing from
$362 - $434. VPI has a wellness rider that can be added on
to either of its other plans for $99. Both PetsHealth Choice
plan and VPI's wellness rider offer more in the way of coverage
for routine veterinary services, such as inoculations, testing
and treatment for heartworms, discounts for flea control and
the like. Deductible levels may also vary depending on the
plan you choose.
HMOs for Dogs?
What if
you want to insure your pet, but the breed is known to have
congenital or hereditary problems? Pet Assure isn't exactly
an HMO, but it offers its members discounts on all veterinary
bills and services as well as on many pet health and grooming
products, even if the condition your dog is being treated
for is hereditary or pre-existing. The membership fees for
these plans are fairly modest, running about $100 per year,
with discounts usually averaging 25 percent for veterinarian
visits and treatments. The only catch is that you can only
go to a veterinarian who is involved in the program, the equivalent
of a "preferred provider physician." And there may not be
one in your area. But depending on your finances and the type
of dog you have, one of these plans may be worth checking
out. Maybe your local veterinarian has this kind of plan in
place. Ask.
The Bottom Line
Pet health
insurance has its problems, but is well worth looking into
for most dog owners. In cases of catastrophic accident and
illness, it can and has been a lifesaver for pets without
draining the owners financially, or forcing them to make a
decision to have a pet put down because they couldn't afford
its medical treatment. But be an intelligent consumer, and
check out all your options before you buy. Make sure serious
illness coverage is available for your older dogs as well
as the younger ones. Talk to your veterinarian. If you have
Internet access, check out some of the websites listed below.
Ask questions before you commit yourself and your pet. And
even if you're still undecided about pet insurance, make sure
to take your dog in for regular inoculations, boosters and
screening tests. Prevention, whenever possible, or catching
a problem in its earliest stages, is still the best cure.
Rhys Morrison is a freelance writer, editor and self-professed
computer geek currently trapped in software limbo.
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