Pet Insurance andPet Insurance andYour VeterinaryYour Veterinary

PracticePractice

Pet Insurance FactsPet Insurance FactsLess than 1% of Cats and Dogs are

insured in the United States – about 800,000 pets insured in 2008

Packaged Facts estimates North American Pet Insurance sales will more than triple in the next five years from $248 million in 2007 to $1.1 billion in 2012

How Pet Insurance WorksHow Pet Insurance Works

1. Get quote & buy policy

2. Waiting period

3. Get treatment

4. Pay veterinary invoice

5. File a claim

6. Receive check

Pet Insurance Has MaturedPet Insurance Has Matured

More companies selling pet insurance

A wider variety of conditions covered

The internet facilitates pet owner education and awareness

“Not your grandfather’s pet insurance any more”

Not Managed CareNot Managed Care

Client can go to any veterinarian in US

Veterinarian and client determine treatment protocol – not a third party

No pre-authorization required

What Is Covered?What Is Covered?

Generally…Illnesses and injuriesPrescription medicationsSurgeries and hospitalizationCancer treatmentsAfter-hour emergency & specialist visitsDiagnostics, MRI, CAT scans and X-raysWellness/routine care (optional)

What Is Not Covered?What Is Not Covered?

Generally…

Pre-existing conditions (unless cured)

Congenital conditions (present at birth)

Preventative, elective and cosmetic procedures

Boarding and grooming

Food, including prescription food

Supplements and vitamins

Major Differences BetweenMajor Differences BetweenPlansPlans

Are hereditary conditions covered?

Are chronic conditions covered after 1st

year?

What is the reimbursement based on?

The vet bill; or

Usual, Customary, and Reasonable charges; or

A benefit schedule

Pet Insurance PlansPet Insurance Plans

Why Consider PetWhy Consider PetInsurance?Insurance?

Veterinary costs continue to rise

Accidents and illnesses happen and are inevitable

Economic realities of treatment can cause conflict with the pet bond

Pet insurance gives pet owners the ability to afford needed veterinary care with a manageable monthly premium

Procedures (And Their Cost)Procedures (And Their Cost)Have AdvancedHave Advanced

Stop Treatment PointStop Treatment Point

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

<$249 $250-$499 $500-$749 $750-$1000 Over $1000

DVM Newsmagazine, 2006

Insurance RaisesInsurance Raisesthe Stop Treatment Pointthe Stop Treatment Point

Amount client can afford

$500

Deductible $100

20% co-pay $400

Insurance pays 80% $1,600

Stop Treatment with Insurance

$2,100

$0$500

$1,000$1,500$2,000$2,500$3,000$3,500

1 2 3 4 5 6 7

Am

ount

Ava

ilabl

e

Years

Insurance vs. Savings AccountSavings Account Insurance

Savings Account vs.Savings Account vs.InsuranceInsurance

$35/month premium vs. savings account

Advantages of PetAdvantages of PetInsuranceInsurance

Allows pet owners to budget for veterinary care

Provides higher limits than most clients can afford

Can be used for their regular veterinarian, emergency clinics, referral centers or when traveling

AdvantagesAdvantages of Pet Insuranceof Pet Insurance

(continued)(continued)

Reduces the need for available credit

Offsets the rising cost of veterinary care due to better technologies and treatment options

Advantages for PetAdvantages for PetQuicker Owner Response to Symptoms

Increased Owner Compliance

Eliminates Economic Euthanasia

Overall Better Health of Pet

RexRelinquished because his owner

could not afford PU surgery

With Pet Insurance…With Pet Insurance…

The best possible treatment options are affordable

Pets receive needed diagnostics and in-depth care

Better pet health results from greater care

Euthanasia for economic reasons less likely

Reduced need for veterinary financing

Should I RecommendShould I RecommendPet Insurance?Pet Insurance?

Pet insurance is the one thing you cannot buy when you need it the most.

Pet insurance can help your clients

in their time of need.

Advantages To YourAdvantages To YourPracticePractice

Increases client compliance with your recommendations

Provides clients a ready means of affording health treatments

Reduces your accounts receivable

Eliminates conflict between clients’ financial limitations and providing the best of care

Improves pet health and client satisfaction

Making Insurance WorkMaking Insurance WorkPick a limited number of companies to

supportTrain the hospital staffActively educate clientsMention pet insurance to every clientExam room / lobby materialsNews letters / client communicationTelephone recordings

Promote to your clientsStaple brochures to invoices Include brochures in puppy/kitten kits

SummarySummaryMore companies offering comprehensive

careInsurance removes the unpredictable

financial strain caused by a large health expenseInsurance provides opportunity for the

best careInsurance allows you and your client to

focus on care, not cost

NAPHIANAPHIA

For more information call

Loran Hickton,

Executive Director, NAPHIA

(412) 319-7730

GlossaryGlossary

CoinsuranceThe percentage of the costs of services shared by the carrier & policy owner.

DeductibleA fixed amount of dollars that the policy owner must pay before the health benefits begin.

Glossary (continued)Glossary (continued)

Benefit scheduleAn itemized list of available reimbursement amounts for specific medical diagnoses.Usual, Customary, & Reasonable

ChargesThe charge for health care that is consistent with the average rate or charge for identical or similar services in a certain geographical area.