Countering the Costs Amid a Growing Divide in Pet Care

By Margi Tooth

Seattle, Washington

The veterinary profession stands at a crossroads. Veterinarians have never been better equipped to provide advanced care, yet the cost often puts it out of reach. This presents a challenge but also a remarkable opportunity.

While escalating costs are demonstrably impacting the ability of non-insured pet owners to access care readily, with patient visits down by 2.3% in 2024, an undeniably positive countertrend has emerged: insured pet owners are increasingly seeking and utilizing specialized veterinary services.

Through an in-depth analysis of 5.7 million pet care claims spanning the past five years, Trupanion data scientists found that despite economic shifts, insured owners have consistently accessed specialty veterinary medicine for their pets, often having to pay only a small fraction of the care’s invoice.

Although this data pertains solely to costs associated with the highest levels of specialty veterinary care, it paints a nuanced picture of the landscape, where the accessibility of care is becoming a tale of two realities: one shaped by financial limitations and another empowered by the security of high-quality pet health insurance.

While insured pet owners can increasingly access advanced treatments, a significant portion of them face growing financial barriers that impact their ability to provide optimal care. Consider these findings:

• Dermatology: Claims for canine dermatology have surged by 41%, while feline dermatology claims have increased by 27%. The growing demand for dermatological care, accompanied by increased average claim amounts for dogs (33%) and cats (11%), suggests that insured owners are willing to pursue comprehensive services despite the associated costs.
• Dentistry: Claims for canine dentistry have jumped by 34%, and feline dental claims have risen by 20%. Despite the concurrent increase in average claim amounts, which climbed by 38% for dogs and 37% for cats, insured clients are taking a proactive approach to their pets’ dental care.
• Cardiology: Cardiology claims have swelled by 55% for dogs and 47% for cats. This surge in demand occurred even as average cardiac claim amounts increased by 34% for dogs and 14% for cats.
• Oncology: The fight against pet cancer is growing, with the number of oncology claims for dogs rising by a remarkable 73%. Average claim amounts for oncology also increased by 36%, underscoring the crucial role pet insurance plays in making these critical therapies more accessible.
• Neurology: More and more insured clients are seeking care for their pets’ neurological issues, as evidenced by a 47% rise in claims for dogs and a 28% increase for cats. Concurrently, average claim amounts for neurological cases have also increased by 30% for dogs and 12% for cats.

Understanding the Driving Forces

Though the growing awareness of the value of high-quality pet insurance is undoubtedly a significant factor driving this trend, other key elements may also be at play.

First, improved diets, preventive medications, novel technologies and a greater understanding of animal physiology may be contributing to pets living longer, healthier lives. However, with this increased longevity also comes a greater likelihood of developing age-related illnesses and chronic conditions, many of which necessitate specialized veterinary intervention.

Second, the pet insurance experience has undergone significant transformations. Trupanion has revolutionized the pet insurance experience by streamlining the claims process, allowing practices to receive payments directly, often within seconds. Not only has reducing upfront costs made care more accessible, but it has also undoubtedly fostered greater trust and increased the overall usage of pet insurance.

Another factor contributing to the rise in specialty care may be the evolving demographics of pet ownership. Approximately 52% of dog-owning households in the United States are now home to a senior dog age 7 or older. As the pet population ages, the demand for specialized veterinary care tailored to the unique needs of both adult and senior animals is likely to continue increasing.

Trupanion’s data further underscores this trend, revealing that most specialty claims arise for pets 5 years or older whose owners wisely secured insurance coverage before the onset of age-related illnesses. This proactive approach to pet health is crucial, as it ensures that pets receive the highest quality of care not only during their primary years but also during their most vulnerable.

Costly Claims

Trupanion paid out $30.51 million in neurology insurance claims in 2024. Three of the most common neurological conditions for insured dogs and cats were seizures, spinal pain or disorder, and vestibular disease. The average claim amount was $1,997 for dogs and $1,835 for cats.

A Golden Age

Despite what might seem like challenges, the veterinary field is experiencing a golden age of innovation, with pet insurance serving as an indispensable catalyst in bringing these advancements to life.

On the one hand, the growing complexity of cases and increasing pet owner expectations have created a significant demand for integrated, specialized veterinary expertise. This surge in demand has likely been fueled, in part, by the internet, which has broadened access to information and increased pet owners’ awareness of the advanced medical possibilities available to humans. Naturally, this increased understanding and acceptance of high-quality human health care has led to a desire for similar levels of sophisticated care for pets.

As more owners seek high-level treatments for their pets, veterinarians will likely need to adopt a more collaborative approach to care, with general practitioners working more closely in tandem with specialists on complex and chronic health issues. This highlights the importance of adequately preparing both the next generation of veterinarians to pursue board certification in various specialties, as well as providing pathways for continued education and training opportunities for general practitioners.

On the other hand, medical breakthroughs in veterinary medicine are directly being fueled by investments in specialty care. As more pet owners seek advanced care, veterinary practices and research institutions are increasingly incentivized to invest in cutting-edge technologies, therapeutic interventions, research and top-tier veterinary talent. The potential financial security provided by pet insurance can help enable these significant capital investments, allowing practices to expand their service offerings, drive wider veterinary personnel and ultimately deliver a higher standard of care.

A Vehicle for Progress

The implications of high-quality pet insurance are vast, with benefits that extend far beyond what I outlined. It is not merely a mechanism for facilitating payments; it is also a powerful and dynamic driver of positive change, helping to remove barriers to care and pushing the boundaries of what is medically and financially possible in veterinary medicine.

By understanding the transformational power of pet insurance and embracing it as a vital partner in this evolution, we can collectively ensure that veterinary care remains accessible to all.

Margi Tooth joined Trupanion in 2013 and currently serves as CEO. She oversees all aspects of the company’s growth, including product development, distribution, pet acquisition, international expansion, and the introduction of new products and channels.

Source: Trupanion, Inc.