Scratching the Surface: Pet Health Insurance Pros & Cons

At Mendota Pet, we believe that pets are family. As Americans work longer hours both in the office and at home, pet health insurance is becoming a trending job perk offered in some companies' benefits packages. To keep employees satisfied in the 21st century, big tech companies like Google and NVIDIA recognize employees’ pets as part of their well-being, boosting worker morale. More companies are offering pet health insurance and daycare for dogs, and we at Mendota Pet embrace this trend.

More than just an emerging trend, data from the North American Pet Health Insurance Association (NAPHIA) touts pet insurance growth of over 17% from 2022 to 2023 across the U.S. and Canada, with total premiums exceeding $4 billion dollars. This growth extends beyond cats and dogs; there are policies for exotic species like small mammals, amphibians, reptiles, raptors, and even bees. However, most animals that are insured are dogs.

Which types of pets might need pet health insurance plans?

• Dog and cat breeds with hereditary health issues
• Pedigree and show dogs
• Herding dogs and dock dogs
• Service dogs, including medical alert dogs
• Working breed dogs that face job-related dangers, such as police K9s, search and rescue, and detection dogs
• Various other working breeds and animals
• Exotic pets

The American Pet Products Association (APPA) projects that $39.1 billion will be spent on routine veterinary care—including pharmaceuticals, surgery, and related products—in 2024. Some insurance companies offer discounts for insuring multiple pets, making it more affordable for households with several animals. But what else do we know about how health insurance policies can help save costs when it comes to pets? Let's take a closer look at the pet health insurance industry by examining its pros and cons.

Cons of Pet Health Insurance

Limited Species Coverage Most pet health insurance policies apply only to dogs and cats, leaving owners of other animals with limited options.

High Premium Costs Monthly premiums can be expensive, especially for comprehensive coverage, making it potentially cost-prohibitive for some pet owners.

Waiting Periods Policies typically include a waiting period—often around 14 days—before coverage begins, delaying immediate protection for your pet.

Preexisting Conditions Not Covered Preexisting conditions are generally excluded from coverage, limiting benefits for pets with prior health issues.

Breed Exclusions Certain breeds considered high-risk or liabilities, such as Pit Bulls and Rottweilers, may be excluded from coverage entirely.

Out-of-Pocket Expenses and Reimbursements Pet owners usually have to pay veterinary costs upfront and then wait for reimbursement, which can strain finances.

Deductibles and Co-Payments Pet owners usually have to pay veterinary costs upfront and then wait for reimbursement, which can strain finances.

Limited Coverage for Wellness Care

Routine care like check-ups and vaccinations may not be covered under standard plans and often require purchasing additional wellness packages.

Annual Lifetime and Payout Limits Some insurance plans have caps on how much they will pay annually or over the pet's lifetime, potentially leaving you responsible for expenses beyond those limits.

Complex Payout Processes Filing claims can be time-consuming and complicated, with reimbursements taking several weeks, which can affect your cash flow and financial planning.

Pros of Pet Health Insurance

Peace of Mind Whether you own a puppy, a senior dog, or an exotic species, pursuing coverage for your pet is a responsible way to care for them from a young age. Knowing that you have financial support in case of unexpected illnesses or accidents provides significant peace of mind.

Freedom to Choose Any Licensed Veterinarian Pet health insurance typically allows you to visit any licensed veterinarian, specialist, or emergency clinic. This autonomy helps policyholders select the veterinary professionals that best fit their pet’s needs without worrying about network restrictions.

Cost Savings on Unexpected Expenses Accidental injuries and sudden illnesses can be expensive. Pet health insurance helps mitigate these costs ensuring that you can afford necessary treatments without compromising your pet's health due to financial constraints.

Access to Alternative Therapies Holistic options like acupuncture, chiropractic care, hydrotherapy, and other alternative treatments are becoming more accessible through pet health insurance. This allows pet owners to explore integrative, whole-body healing approaches that focus on their pet's unique conditions.

Coverage for Chronic and Hereditary Conditions Many pet insurance plans offer coverage for chronic and hereditary conditions, such as diabetes or hip dysplasia, especially if enrolled early. This can significantly reduce long-term veterinary expenses for breeds prone to certain health issues.

Customizable Plans Pet insurance providers often offer customizable policies, allowing you to choose coverage levels, deductibles, and reimbursement rates that fit your budget and your pet’s specific needs.

Encourages Prompt Veterinary Care Knowing that costs are partially covered may encourage pet owners to seek veterinary care promptly, leading to earlier diagnosis and treatment, which can improve outcomes.

Budgeting for Pet Care Paying a monthly premium helps pet owners budget for pet care expenses, avoiding unexpected large bills and spreading the cost over time.

Support During Emergencies In emergency situations, pet insurance can alleviate financial stress, allowing you to focus on your pet's recovery rather than worrying about costs.

Lifetime Coverage If you enroll your pet while they're young, many policies offer lifetime coverage, ensuring that they are protected throughout all life stages.

Recap: Pet health insurance offers numerous benefits, from providing peace of mind and financial support during emergencies to allowing access to a wide range of veterinary professionals and treatments, including alternative therapies. While there are cons to consider, such as cost and coverage limitations, these pros highlight how pet health insurance can help alleviate some financial burdens of unexpected medical expenses. We encourage each pet owner to thoughtfully weigh both the good and bad for your pets needs and financial situation.

At Mendota Pet, we're heartened by the growing recognition of pets' integral role in our lives and workplaces. As more companies and individuals embrace pet health insurance, we remain committed to supporting the well-being of pets everywhere. Thank you for being part of our community and for your dedication to the health and happiness of your pets. 🐾