The humanization of pets and the increased costs of veterinary care have sparked a burgeoning industry — pet health care.
The economic downturn has resulted in cost-conscious consumers forced to tighten their money belts to make ends meet.
Although many have curbed their spending on purchases and services for themselves, pampering and caring for their beloved pets still are top priorities. As a result, pet health insurance and veterinary discount plans are in demand.
From 2003-07, the number of cats, dogs and exotic animals insured in the country increased 56 percent, according to a study by research group Packaged Facts.
Dogs led the pack in 2008, with an estimated 2 million insured. Cats were second,with about 900,000 insured, according to data provided by the American Pet Products Association.
Although the statistics account for only about 3 percent of all dogs and 1 percent of cats, the numbers are expected to surge because of the increasingly widespread perception of pets as family members.
Pet owners with pet health-care coverage are opting to take more extreme measures — from kidney transplants to hip replacements to improve the lives of their elderly or ailing animals.
Although such medical procedures come with a hefty price tag, pet health-care plans mitigate the expenses, say pet owners.
Pet owners are expected to spend $47.7 billion on their pets this year, compared with $45.5 billion the year before, according to the American Pet Products Association.
Owners are paying more for food, supplies and vet care, the group says.
Vet visits for surgeries rank as the top expense, according to the association’s 2009 and 2010 surveys.
Pet owners are willing to pay to have their pets undergo extensive operations to improve the quality of their lives and extend their pets’ life spans.
“Our kids are grown and out of the house — and our animals are our children,” said Marnie Zei, the owner of two dogs and a cat that she enrolled in a health-care discount plan. “I have not found the limit of money that I wouldn’t spend to fix them.”
Cost of care on the rise
As the demand to keep animals alive longer continues to grow, so has the cost of veterinary care.
Since 2000, the cost of veterinary services has inflated 80.4 percent — compared to 28.1 percent inflation for services in all other industries.
Vets who absorb the costs of increasingly expensive equipment and medical supplies say they are stretched thin.
“My expenses have gone up dramatically,” said Wendy Holst, a veterinarian who owns two pet clinics in the Phoenix area.
Vets’ costs continue to increase as they are forced to keep up with the new technologies or pet care.
Within the next few years, the rising cost of veterinary care is expected to increase as more pet owners enroll in plans, said Doris Amdur, founder of United Pet Care, a health-care company that offers discount plans
“There are so many people whose pets needed procedures, but they’re prohibitively expensive,” Amdur said.
Options
Myriad pet health-insurance options exist.
Some of the largest insurance companies are Veterinary Pet Insurance; Pethealth Inc. of Oakville, Ontario; and PetFirst Healthcare, headquartered in Jeffersonville, Ind.
Providers offer insurance plans that differ in type and cost — from minimal injury coverage, to treatment plans for chemotherapy and hip reconstruction.
To qualify for most plans, a pet can’t have a pre-existing condition or exceed a certain age limit, usually set at 9 years old.
Monthly premiums range from $10 to $100, with annual deductibles of $50 to $500 and annual or lifetime maximums of $1,000 to $14,000.
Depending on the provider, about 80 to 100 percent of a pet’s claim is refunded after the deductible is paid.
Most insurance plans offer crisis coverage. They also charge additional fees for preventive-care procedures, such as annual checkups, vaccinations and teeth-cleaning. Preventive care can increase premiums by as much as $22 per month.
Some pet owners say health insurance has been a great investment.
Teri Morris secured pet insurance for her dog Bella, 9, about five years ago.
Although Bella hasn’t had any major health problems, Morris knows vet bills can get expensive quickly.
Morris’ dog Scooby died a year ago after she spent about $8,000 in vet bills to treat his diabetes, thyroid dysfunction and bladder cancer, she said.
“At least some of that would have been covered if he had been insured,” she said.
Pet health-care discount plans usually provide discounts on preventive care, rather than crisis care.
Savings plans provide vaccinations, annual checkups and sometimes teeth cleanings for free or at a substantial discount. The plans are usually cheaper than health insurance but provide savings that rarely exceed 20 percent for crisis care.