Three Things to Know
This research investigated how pet insurance influences dog owners’ veterinary spending, visit frequency, and treatment decisions when faced with a hypothetical major health issue.
While pet insurance significantly increases overall spending, it does not necessarily translate to more frequent veterinary visits. This suggests that insured owners may opt for more comprehensive services during fewer visits. However, the presence of a preventative wellness plan was found to increase visit frequency by 20%.
When presented with a hypothetical major health crisis, dog owners with insurance were more likely to choose treatment options over euthanasia. This finding highlights that pet insurance may empower owners to provide better care for their dogs, potentially reducing the stress and burnout experienced by veterinarians by decreasing the need for euthanasia due to financial constraints.
For Dog Welfare Practitioners:
Pet health insurance can be a valuable tool for dog owners, offering financial protection and peace of mind. By helping owners plan for unexpected veterinary expenses, insurance can minimize the risk of relinquishing a beloved pet due to unforeseen costs. As a key concern for veterinarians is that many owners do not bring their seemingly healthy senior dogs for regular checkups, wellness plans can address this and help encourage more frequent vet visits, which is crucial for their well-being.
While dog shelters and veterinary clinics should not become insurance sales agents, they can play a crucial role in raising awareness about the benefits of pet insurance. Establishing connections with local pet health insurance brokers can mutually benefit both parties.
Furthermore, larger shelters and veterinary clinics can explore innovative approaches to offering pet insurance options. The ASPCA and DoDo serve as successful examples, having partnered with an insurance provider to create their own branded insurance program.
The Full Picture
Today, pets are more than just property; they’re cherished family members. Despite the strong bond between people and their pets, veterinary visits are actually declining, while costs are soaring. This is often due to financial constraints, forcing some owners to forgo essential treatments for their pets. This not only harms the pet’s health but also puts a strain on veterinary practices and contributes to burnout among veterinarians.
Pet health insurance, introduced in the U.S. in 1980, helps owners cover unexpected vet bills. While its use is less common in the U.S. than in some other countries, like the UK and Canada, awareness is key. Research shows that veterinarians can significantly influence pet owner decisions, with many more likely to consider insurance if recommended by their vet.
Study Methods
This study, titled “The Impact of Pet Health Insurance on Dog Owners’ Spending for Veterinary Services”, aimed to understand the relationship between pet health insurance and dog owners’ veterinary spending patterns.
An online survey was conducted in January 2017 to gather data on various aspects, including the strength of the human-animal bond, ownership of pet health insurance or wellness plans, and risk perception. Sociodemographic data on both owners (age, income, education, etc.) and their dogs (breed, age, size) was also collected.
Study Results
The study analyzed 654 observations, with 63.5% of respondents were female, most were employed, at least high school educated, and two-thirds earned $55,000 or more annually. On average, dogs were 5 years old, with nearly half being purebred and less than half spayed or neutered. Around 23% of owners reported their dog had a major illness in the past, and 20% anticipated a major illness within the next year.
A total of 442 dog owners have pet health insurance (67.6%) and 212 without (32.4%). Of those insured, three-quarters of pet owners had a preventative care (wellness) plan for their dog. However, over half of all respondents indicated that a $1000 veterinary bill would cause financial stress.
Impact of Pet Health Insurance
Spending
This analysis revealed several impacts of pet health insurance. Firstly, pet health insurance significantly increases veterinary spending, with insured owners spending an average of $211 more annually than uninsured owners. However, other factors also play a crucial role. Higher-income owners (earning over $55,000), those with stronger human-animal bonds (as evidenced by allowing their pets to sleep in the bed), and owners of large-breed dogs or dogs with past health issues tend to spend more on veterinary care. Additionally, owners who perceive a higher risk of future health problems for their dogs are also more likely to incur higher veterinary expenses.
Frequency
While pet insurance increases overall spending, it doesn’t necessarily translate to more frequent vet visits. Instead, insured owners may opt for fewer but more comprehensive visits. Factors influencing visit frequency include the presence of a wellness plan (20% more frequently), increased spending on non-medical pet items, a stronger human-animal bond, and a history of illness. Conversely, older dogs and dogs with owners who have lower levels of education tend to have fewer vet visits.
Annual veterinary expenses varied, with 52% spending between ₹1,000 and ₹3,000, while 21% reported no expenditure, often due to recent pet acquisition. The study highlighted significant concerns about the financial burden of pet care, with 90% of owners agreeing that veterinary costs are a significant issue, 74% citing financial stress from expenses, and 70% expressing worry about the financial risks associated with pet illnesses.
Decision When Facing A Major Health Issue
Survey participants were presented with a hypothetical scenario where their dog faced a serious health condition. They were then asked to choose between four treatment options:
- Euthanasia
- $1000 treatment: Survival with moderate health problems for the remainder of the dog’s life.
- $3000 treatment: Survival with minor health problems for the remainder of the dog’s life.
- $10,000 treatment: Full recovery with no further health problems.
Analysis revealed that pet health insurance significantly influenced decisions for essential medical procedures. Insured owners were more likely to choose treatment options over euthanasia, particularly in the $1000 scenario. However, insurance did not significantly impact the selection of more expensive treatments ($3000 or $10,000). This suggests that factors beyond cost, such as the perceived severity of the condition, the potential for suffering, and the overall benefits of the treatment, heavily influence these decisions.
Higher-income owners, as well as owners with stronger human-animal bonds, were more likely to choose expensive treatments. Older dogs were less likely to be chosen for treatment options over euthanasia. This likely reflects an acknowledgment of diminishing returns in extending the lifespan of older pets.
Conclusion
This research underscores the complex relationship between pet health insurance and veterinary care utilization. While insurance significantly increases the amount spent per visit, it doesn’t necessarily lead to more frequent visits. This suggests that insured owners may opt for more comprehensive services during fewer visits, likely driven by increased financial confidence.
Educating pet owners about available financial assistance options, such as insurance and wellness plans, is crucial for improving access. Veterinarians play a critical role in this process, as nearly half of surveyed owners indicated they would be more likely to purchase insurance if recommended by their veterinarian. Moreover, 40% preferred to purchase insurance directly through their veterinary practice.
By emphasizing the long-term benefits of proactive care, veterinarians can encourage owners to prioritize pet health and improve their pets’ quality of life.
Miscellaneous
Data From Study:
Owned Dogs > Cost of Ownership > Pet Health Insurance
Year of Publication:
2020
External Link:
Williams A, Williams B, Hansen CR, Coble KH. The Impact of Pet Health Insurance on Dog Owners’ Spending for Veterinary Services. Animals. 2020; 10(7):1162. https://doi.org/10.3390/ani10071162