The Advantages of a Benefit Schedule

Dennis' Diary: Part 2

VPI is unique in that we use a detailed, specific benefit schedule to pay claims. In fact, VPI has been using a benefit schedule since we began issuing policies in 1982. We believe using a benefit schedule is the fairest and most transparent way to provide pet health insurance across the USA. Let me explain why.

Know What is Covered

Perhaps the greatest advantage of a benefit schedule is that it clearly communicates what is covered and the amount of benefit available for reimbursement. If it is not on the benefit schedule, quite simply it is not covered. By failing to provide a benefit schedule or a specific list of what is covered, we believe other companies are not being as fully open with their policyholders as VPI.

Treating Policyholders Equally

Our benefit schedule lists hundreds of common health conditions in companion animals. VPI’s policy provides an annual dollar benefit for each covered condition, which is the same for all policyholders. In other words, across the entire country our policyholders pay slightly varying premiums and enjoy the same maximum benefit allowances for similar veterinary medical procedures.

Beware of a Hidden Benefit Schedule

When shopping for pet health insurance you need to understand how veterinary fees will be reimbursed. VPI’s benefit schedule is incorporated into the policy itself. Most of our competitors claim to reimburse an exact percentage of the veterinary bill – typically limited to a capped amount referred to as “usual and customary fees.” This is, in effect, a hidden benefit schedule because they don’t easily provide policyholders with a specific list of usual and customary fees. These companies are free to determine what they consider usual and customary and their determination may be far below average veterinary fees.

“This is, in effect, a hidden benefit schedule because they don’t easily provide policyholders with a specific list of usual and customary fees.”

We recommend pet owners shopping for pet health insurance ask the insurer how it determines usual and customary fees. Some companies use published fee reference guides to determine usual and customary fees, however policyholders may have no way of accurately knowing policy limitations without spending hundreds of dollars to purchase the guides. In contrast, VPI’s benefit schedule is free and available on petinsurance.com. Anyone interested can access it at anytime. In addition, we send the benefit schedule to all policyholders upon enrollment.

No Benefit Schedule May Lead to More Frequent Premium Increases

Paying a set percentage of veterinary fees exposes the insurer to veterinary fee inflation. Therefore, policyholders may experience more frequent price increases from VPI’s competitors. These companies may be able to hold prices for a brief time, but eventually they will need to increase their prices to stay in business, or lower their reimbursement amounts. We know this from experience; in our 26 year history we have seen more than 50 companies enter and leave our industry.

We believe that our benefit schedule provides the stability that will continue to set us apart from the competition, ensuring we will be there for you when you need us.

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