Understanding the payment policies, transactions, and administrative concepts of pet insurance is challenging for pet owners. In this article, I, Ivana Crnec, DVM, will explain how pet insurance works and which providers pay directly to the veterinarian.
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Content:
- How Does Pet Insurance Usually Work
- Do Any Pet Insurance Plans Pay the Vet Directly
- How Does Direct Payment to the Vet Work
- Conclusion
How Does Pet Insurance Usually Work
Pet insurance usually works through reimbursement. The parent takes the pet to the vet and pays the bill out of his/her pocket.
Then, the parent makes a claim, and if the claim is covered, the insurance provider reimburses the parent. The reimbursement equals the veterinary cost minus the deductible or copay (around 10%).
This means the owner must have a certain fund to pay upfront.
Despite that, studies suggest that “88% of dog owners are willing to pay for pet health insurance.”
The Petcube Emergency Fund works differently - it pays the vet directly. The fund covers $3,000 for emergency vet bills and access to online vets and is available at 27% off via this link.
"Depending on the problem, a pet health emergency can cost anywhere from a few hundred dollars to over $7,000,” says William Hodges, DVM, in an article for Pawlicy Advisor.
Being covered and not having to worry about paying the vet bill immediately is a huge relief and allows the parent to focus on the pet and its recovery rather than on finances.
Do Any Pet Insurance Plans Pay the Vet Directly
Yes, some pet insurance plans pay the vet directly. Paying the veterinarian directly is convenient for the policyholder - there is no need to pay upfront or wait for the reimbursement.
Research states that factors influencing the owners’ insurance choice are the “pet insurance premium, reimbursement level, unlimited benefits, and wellness,” explains.
The option to directly pay the vet is relatively new.
However, it is becoming increasingly popular. “I would prefer a plan that has an option for direct payment to the vet rather than a reimbursement only plan. My biggest concern is coverage for a major unexpected accident/illness/emergency,” says a Reddit user.
How Does Direct Payment to the Vet Work
Direct payment to the vet works in a simple way - the insurance company pays the veterinarian. The exact steps depend on the provider, for example:
- Petcube: The parent chats with an online vet to confirm the situation is an emergency, gets treatment, and then the Petcube Emergency Fund covers the bill.
- Trupanion: Vets using Trupanion Vet Direct Pay send bills and get payed immediately via the Trupanion’s software.
- Healthy Paws: The owner has the company talk to the vet and access the pet’s medical records to process the claim.
- Pets Best: The parent sends the company a signed veterinarian reimbursement release form which is then payed.
Conclusion
Most pet insurances follow the traditional reimbursement model, however, plans that pay the vet directly are much more convenient for policyholders.
Trupanion is an example of an insurance company that offers direct vet payments. The Petcube Emergency Fund, is another, and is a true lifesaver when dealing with accidents.