Pet insurance complaints prompt California legislation
By Daniel Rothberg, The Sacramento Bee | |
McClatchy-Tribune Information Services |
"God forbid anything happen again," the
At least that was his thinking at the time.
"We have been completely unimpressed ever since," Waldman said. "We get claims rejected constantly because of a pre-existing condition. In fact, we've never had a claim that has gone just straight through. They always reject it. We always have to appeal."
Waldman doesn't necessarily regret paying for coverage, still hoping his dogs are protected for the "big thing," but he wishes buyers could more easily access information before enrolling.
While only a sliver of American pet owners hold policies -- 1 percent -- the niche insurance has become an increasingly tempting option. Veterinary care can be costly, experts say, with more sophisticated medicine on the market and owners who treat their pets like members of the family.
Unlike human health care coverage, insurance for dogs, cats, even hedgehogs, falls into the category of property insurance. Providers have considerable leeway to place coverage limits and can carve out exclusions for pre-existing conditions or hereditary diseases.
Many policyholders complain that their plans are confusing at best and misleading at worst. It's an issue only worsened by expectations that coverage requirements for pets mirror guidelines for human health care.
With complaints to the
The measure gives insurance regulators a greater ability to oversee the plans, but its primary focus is on making policies more transparent. It features disclosure requirements and includes a 30-day trial period during which policyholders would have the option to return their coverage.
"Consumers weren't confident in the product they were buying," Dababneh said.
In an interview, he pointed to one policy's exclusions list to demonstrate what information consumers might be missing. The list of 21 exceptions included hereditary diseases, neutering and treatment of fleas or worms. The insurance company currently has the discretion to show consumers the information upfront or not, he said. The legislation would require it.
The pet insurance industry, composed of about 10 primary providers, has by and large not taken a position on Assembly Bill 2056. But supporters of the new disclosure requirements tout a key endorsement from
The firm is already forthright with its clients, VPI spokesman
"We think that it's important to bring uniformity to policy language and disclosure," he said. "Because there are now so many companies in the market, we felt it was important that everyone was playing by the same rules."
With lawmakers on break, the measure is awaiting
If the proposed legislation is approved by the
"Pet insurance is still the Wild West and that's what we're trying to rein in," Storm said.
High veterinary expenses can place a burden on pet owners. A report prepared in 2011 for an
"As treatments become more advanced and as pharmaceuticals become more advanced, there are costs that come with that," said
Americans this year are expected to spend an estimated
Treating a benign skin mass, a top surgical procedure for dogs, can cost around
"They can do more than they would otherwise because cost is such a concern," Byam said. "You have to pay out of pocket for animal care."
That was not the case for
"I felt that they over-promised and under-delivered," said Lucks, one of the bill's sponsors.
Under the measure, companies are required to disclose limits, premium adjustments and coverage exceptions. It also sets industry-wide definitions for policy terms.
The bill, for example, defines a "pre-existing condition" as an ailment for which veterinarians have offered to consult or for which pets displayed symptoms in the past. The definition came out of "extensive negotiations" between the industry, Dababneh's office and the
The provider, which lists VPI as an affiliate, said the language is necessary to "maintain product availability" and prevent owners from purchasing coverage only when their pet gets sick.
Dababneh does not currently have pets of his own (he grew up with dogs and cats). Still, the freshman lawmaker considers the legislation a "great win" and hopes the
"There's obviously a big new opportunity for us here in
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