Health Insurance Reform? It's for the Dogs! (And Cats, and Exotic Pets Too)

(July 23) -- Americans' health insurance woes are well known. But now, one state -- California -- is leading the way toward affordable health insurance, for pets, that is.

California Democratic State Assemblyman Dave Jones has introduced a bill, supported by the ASPCA and the Humane Society, that would compel pet insurers to post detailed information about what their insurance covers online, according to The Associated Press.

The Dave Jones pet health care reform bill passed the California state Assembly and a Senate insurance committee. It is waiting for a Senate Appropriations Committee hearing.

Just what would the groundbreaking new bill accomplish? Surge Desk answers your most pressing pet insurance questions:

What would the bill require?
Pet insurers must publicize detailed information on their websites for consumers, who can then see what is and isn't being covered. This information would allow pet owners to compare plan options. An insurer must tell patrons whether it will reduce coverage or increase premiums based on claims filed in the pre-policy period.

Pet insurers shot down the bit on banning pet insurers from denying coverage for pre-existing conditions. The pet insurance industry said that the coverage would end up being more expensive, and that pet owners wouldn't buy insurance until their pets needed care.

The bill would also make pet insurance a separate category in the state insurance code. California and other states currently have pet insurance under "miscellaneous category of property and casualty."

How much did consumers spend on veterinary care in 2009?
According to the American Society for the Prevention of Cruelty to Animals, the U.S. spent more than $12 billion on veterinary care last year.

What percent of pet owners carry health insurance?
Insured pets are still a minority in the U.S. pet population. There are about 850,000 insured pets in the nation, the National Commission on Veterinary Economic Issues reported. The American Veterinary Medical Association thinks the number of insured pets is staying low because veterinarians are afraid of a managed pet care system.

Small Business Trends expects 2009 pet insurance premiums to reach $328 million. It estimates that it will get to $500 million by 2012. Currently, there are 12 pet insurance companies in the nation selling under 15 brands. The insurance companies are Hartville, Embrace, Petfirst Healthcare, Petplan USA, Trupanion, VPI, AKC, Pets Best, 24PetWatch, PurinaCare, ASPCA and Healthy Paws.

What is generally included in a pet insurance plan?
Veterinary Pet Insurance, the nation's largest pet insurer, offers the medical plan and major medical plan for dogs and cats. The medical plan covers accidents, illness, lab tests, surgeries, cancer, prescriptions and hospitalization. You can customize the deductible. The benefits renew annually, and the maximum policy term benefit costs $7,000. The major medical plan covers everything the medical plan does, plus the most amount in reimbursements for accidental injuries, emergencies and illnesses, including cancer. The maximum policy term benefit is $14,000.

Footnote: In other animal rights news, San Francisco recently weighed a proposal to ban the sale of all pets within the city limits, and other cities are considering several similar measures.