Pet care costs have risen significantly the past five years. There are several causes, with the largest percentage being due to increased wages for veterinary technicians, assistants. and client care representatives. For far too many years, staff wages have lagged behind those in other medical professions. The advent of the pandemic and workforce challenges and increased awareness of quality of life issues with veterinary staff has led to much needed staff compensation increases. Unlike human healthcare, where the cost borne by the patient is hidden behind a web of insurance bureaucracy, hidden fees, and lord knows ing, all costs for veterinary care are borne by the client. Pet insurance is an option, which we will discuss below, and our elected in Congress are trying to add a new pet financial plan, too.
Pet Insurance
First we need to briefly tackle pet insurance. It doesn’t work like human insurance (thankfully), but has its own complications. Pet insurance works as a reimbursement program: after the client settles their invoice, they submit the invoice, and sometimes the whole medical chart, and the insurance company pays the client back, either through a check or automatic transfer to their bank . Like human insurance, though, there are deductibles and certain non-covered conditions. Many plans will not cover a pre-existing condition—and some insurance companies are very liberal in their definition of a pre-existing condition, to the detriment of the client. Policies vary greatly with coverage, age of pet, prior issues, breed, city location, all affecting the prices. Examine any policy carefully before purchasing!
that an insurance company must take in more than they pay out: aka in the end, most people will pay more than they receive. Whereas homeowner’s insurance covers a huge sum, should there be a problem, pet insurance payouts and costs are more moderate. An emerging trend amongst clients is to create a high-yield savings / investing for their pet. Every month funds are automatically transferred from their regular checking to this special , with money being used only for pet emergencies. Should the pet remain healthy, the will grow and can be used for future care.
The PAW Act
Many people put the health of their pets ahead of their own, treating them as of the family. The challenge of affording pet care has reached the halls of Congress. In September Congresswomen Claudia Tenney and Deborah Ross introduced the People and Animals Wellbeing (PAW) Act, which will amend Internal Revenue Service code to allow veterinary care under advantaged health care spending s, including Health Savings s (HSAs) and Flexible Spending s (FSAs).
Should the PAW Act be enacted, pet owners may use these s to pay for up to $1,000 for veterinary care or pet insurance. Service animals, including those serving veterans, would be exempt from the $1,000 limit. The act does not increase the total amount allowed in these s, though.
In a press release, Congresswoman Tenney stated, “Our pets and service animals are cherished of our families, and it’s essential that owners have the ability to pay for quality care. The PAW Act offers greater flexibility to pet owners by allowing them to use HSAs and FSAs for pet care expenses. This legislation will help veterans, and all pet owners afford veterinary care for their beloved pets and service animals.”
Congresswoman Ross added in the same release, “ …rising veterinary costs often make it challenging for families and veterans to provide care for their pets or service animals. As a dog owner, I’m proud to introduce the bipartisan PAW Act that would include veterinary care and pet insurance as eligible expenses under HSAs and FSAs to help ensure every animal lover can afford care for their pet. I’m grateful for the partnership of Congresswoman Tenney and will keep working to see this bill signed into law.”
The bill has the of a broad spectrum of the veterinary care community, including the American Veterinary Medical Association, the Human Animal Bond Research Institute, and several pet insurance providers.
Dr. Teich is the medical director for District Veterinary Hospitals in Navy Yard, Eastern Market and Brookland. Visit www.districtvet.com for more information.
