Dr. Rubenstein recommends veterinarians address the cost of care early on in the client relationship. GettyImages/FreshSplash While advances in veterinary medicine have expanded the treatment options for companion animals, providing “state-of-the-art” veterinary care—as every veterinarian knows—is more expensive than the limited treatment options available in years past. At the same time, consumer anxiety about the economy has caused many people to cut back on spending, including veterinary care. A recent survey found 15 percent of pet owners skipped a veterinary visit and 37 percent declined recommended care for their companion animal due to cost concerns.1 “We are getting quite a few more calls from people wanting to know pricing before they go the through,” says Molly Lautzenheiser, CVPM, hospital administrator for Avon Lake Animal Clinic in Avon Lake, Ohio. “People are much more conscientious about spending in the past six months to a year due to economic uncertainty.” To ease the financial stress of pet ownership and provide peace of mind, pet owners are turning to pet health insurance. While the percentage of pet owners in the U.S. purchasing insurance is still tiny–only 5.46 percent for dogs and 2.04 percent for cats–interest is growing. The number of insured pets in the country has increased by an average of 20 percent annually over the past five years, according to the North American Pet Health Insurance Association (NAPHIA).2 The number of companies offering pet insurance has increased as well, from a handful a decade ago to more than 30 today. The pet insurance industry in the U.S. generated $4.7 billion in gross written premiums in 2024, with an average year-to-year growth rate of 25 percent.2 Pet health differs from human health insurance, and clients should not expect it will work the same way, explains Ricky Walther, DVM, chief medical officer for Pawlicy Advisor, an online pet insurance marketplace and brokerage firm based in Scarsdale, NY, that helps pet owners find options for their pet. Unlike human health insurance, pet health insurance is considered property and casualty insurance and functions more like car insurance. With few exceptions, clients pay the veterinary clinic and submit a claim for reimbursement. Pre-existing conditions are usually excluded, and premiums can rise as a pet ages. Some policies cover wellness visits and preventative care, while others cover only accidents and illnesses. While veterinarians have had concerns in the past about the cost, value, and administrative paperwork of pet insurance, attitudes are becoming more positive, he notes. “Vets are becoming less skeptical and much more comfortable with the idea of pet insurance,” Dr. Walther says. In fact, a 2023 Pawlicy Advisor/AAHA survey found 82 percent of veterinarians and practice staff strongly agreed pet insurance helped veterinarian clinics provide better care, and 89 percent strongly agreed it reduced clients’ financial stress.3 Serving a larger number of clients with pet insurance can improve the practice’s bottom line, too. Pet owners with insured pets are more likely to visit the clinic and are more likely to agree to the recommended treatment plan for their pet compared with clients without pet insurance.4 “Pet insurance has the potential to improve compliance and increase revenue, while reducing the emotional and financial stress often experienced by both pet owners and veterinary teams. It may also contribute to better long-term patient outcomes,” says Monice Dixon Perry, CVPM, a senior manager at Berry, Dunn, McNeil, and Parker, LLC, a consulting firm in Stamford, Conn., that provides veterinary practice management consulting. However, pet insurance is not a panacea that solves all client concerns about the cost of veterinary services. Instead, it is only one tool in an array of payment options, including medial credit cards, loans, payment plans, and grants that can help clients pay their bills. Tips for addressing financial issues To help clients plan for the cost of caring for their pets, veterinarians and practice managers offered suggestions on how to broach the topic of pet health insurance with clients and smoothly manage payment issues overall. Decide who will discuss payment issues with clients At Avon Lake, all the technicians and customer service staff are trained on how to discuss financial issues with clients so anyone can answer questions about costs and payment options. “We really focus on helping facilitate care when it comes to financial concerns or answering questions from clients on how to process claims,” says Lautzenheiser. Access Veterinary Care in Minneapolis, on the other hand, funnels payment and insurance questions to the front desk so the veterinarians can focus on clinical care says Tania Blake, director of operations. Discuss the cost of care at the first wellness visit “Have an open discussion when pets are purchased or adopted so owners understand the health risks and how to save for unexpected events,” says Jennifer Rubenstein, DVM, owner of Jockey Hollow Veterinary Practice in New Milford, NY. Dr. Rubenstein adds that no matter what a client ultimately decides—insurance, a pet care savings account, or a medical care credit card, such as CareCredit or All Pay—it is important to urge clients to have a financial plan for their pet’s care. Post estimated treatment costs on your website and link to information on payment options The website for Rubenstein’s practice has a page with information on pet insurance, including types of coverage and how to compare policies. At Access, on the other hand, a webpage links to payment options, including medical credit cards, loans, and grants. Don’t recommend any specific insurance company Walther says it is important to steer clear of an endorsement of any particular plan. Instead, he suggests veterinarians and their staff talk generally about pet insurance, inform clients about several carriers, hand out brochures for various plans, or refer clients to an online pet insurance brokerage that can help them compare options. Offer a spectrum of treatment Offer a range of treatments at different price points to help clients decide. Avoid offering an all-or-nothing decision on whether or not they can afford treatment for their pet. What’s next in pet health insurance? Rubenstein hopes insurers will be more transparent about coverage limits and exclusions in the years ahead. She also anticipates a shift to coverage of more preventative and wellness care. Walther says he anticipates pet health insurance companies will continue to innovate to make it easier and faster for veterinarian clinics to submit paperwork and for clients to submit claims and be reimbursed. “There’s a lot of opportunity for innovation, such as shortening the reimbursement window and making it more seamless to transfer medical records,” he says. Julie A. Jacob is a communications professional and writer who often contributes to Veterinary Practice News. She lives in Wisconsin with her poodle. References 1. Hrynowski, Z. and Lall, J. “52% of U.S. pet owners skipped or declined medical care.” Gallup. 16 April 2025. https://news.gallup.com/poll/659057/pet-owners-skipped-declined-veterinary-care.aspx 2. NAPHIA State of the Industry Report 2025. https://naphia.org/industry-data/ 3. “Recent survey finds positive shift in perception of pet insurance.” AAHA Trends. December 2024. https://www.aaha.org/newstat/publications/recent-survey-finds-positive-shift-in-perception-of-pet-insurance-in-veterinary-practices/ 4. “Shifting perceptions: The growing impact of pet insurance on veterinary practices.” Pawlicy Advisor. https://www.pawlicy.com/pet-insurance-impact-on-veterinary-practices-report/ 5. “Study: Pet owners with pet health insurance more likely to seek care.” Nationwide. 15 April 2021. https://news.nationwide.com/study-pet-owners-with-pet-health-insurance-more-likely-to-seek-care/
