Learn About The Rising Costs of Veterinary Care

An indicator to the increasing popularity of pet insurance is in large part due to veterinary technological advancements and the rising costs of veterinary medicine. Based on the Bureau of Labor Statistics veterinary fees have risen an estimated 64% from January 1998 to December 2006 and veterinary fee inflation has averaged 5.5% per year since 2002.

Veterinary inflation is not the only cause of increased veterinary spending and an increased need for pet insurance. More technological advances, once reserved for humans, are now becoming widely available for pets. Items such as CAT scans, MIRs, organ transplants, pacemakers, radiation therapy and chemotherapy are amongst a rapidly growing trend among veterinarians. Most recently, some hospitals have even started offering canine bone marrow transplants running at $15,000.

As shown below, most veterinarians feel that veterinary costs are rising too quickly for their clients, thus increasing the appeal for pet insurance.

In a study done by the American Veterinary Medical Association (AVMA) pet owners spent $24.5 billion on veterinary medicine in 2006 which is more than double what was spent 10 years prior.

Below is a sample chart of claims paid by Trupanion Pet Insurance:

The highest single claim paid by Trupanion Pet Insurance in the past few months was for a pet between 1 and 2 years of age for an operation related to Gastric dilatation-volvulus (GDV)*, also known as stomach bloat, and was in the amount of $13,526. Pet insurance popularity is likely growing in part because of expensive medical emergencies such as GDV.

*Note: see Veterinary Terms Dictionary for explanation.