Even if you have pet insurance, there can be that moment of concern before signing the consent form – is this actually covered? With some policies having a confusing array of conditions and exclusions, a “pre-auth” can be really valuable! Your vets will also appreciate it – and may sometimes help facilitate getting one – as it means everyone is working from a much firmer understanding of what will be paid by the insurer.
Table of contents
What is covered under insurance?
With pet insurance, you, the owner pay a monthly amount to an insurance company in case something happens to your pet; this money is then used to pay for veterinary bills. Hopefully, your pet will never need veterinary treatment; but, if they do, the costs should be covered by the insurance company. Each insurance policy covers a claim up to a certain value. And an excess is required to be paid for by the policyholder for each condition, just like with car insurance.
Why get insurance
Having insurance enables you to budget for your pet care more easily and not be caught out by any sudden large bills. Some people may prefer to put money away in a savings account, they can then earn interest on the savings and if their pet doesn’t require any treatment, they then have some spare money.
However, in the unfortunate event that your pet has multiple diseases or injuries needing medical treatment, you may run out of money in your savings account. With insurance, depending on the policy, the total amount of money available for a condition will often be replenished each year that you keep paying for the policy.
What is the usual process?
Usually, when you take your pet to the vet, you will get a bill, which you pay to the vet on the day that you collect your animal. For major surgeries, often a portion of the bill is required to be paid up-front. Sometimes, the cost of procedures can run into the thousands. This can understandably be difficult to pay for on the day, even if you are sure that the insurance policy should cover it.
Why can’t I pay for the treatment in instalments?
Because they are not financial institutions, most vet practices are legally prevented from providing a loan to the owner to cover the cost of the treatment. Strictly speaking, it is the owner’s responsibility to arrange borrowing, for example by using a credit card or loan. Also, there’s the cash-flow issue: if owners didn’t pay for the treatment on the day, the vet practice wouldn’t be able to pay the staff or buy the equipment and medicines that are used for the procedures. This is particularly relevant where a visiting expert or specialist is involved.
Why do I have to pay the vet up-front if I have insurance?
Unfortunately, not all conditions are covered by all insurance policies. This is because there can be restrictions on the policy depending on how long it has been taken out for, what conditions have already been claimed for, what the maximum claim value is and if there were any pre-existing conditions when the policy was taken out. Therefore, the vet can’t always assume that the insurance company will pay for the treatment and perform the procedure anyway. This is where pre-authorisation comes in.
What is pre-authorisation?
This is when your insurance company agrees to pay for a claim before the amount is claimed. For example, if your pet needs non-urgent surgery, you can get an estimate from the vet for the procedure and ask the insurance company if they will pay for it. This can help you to decide if you can go ahead with the surgery or not.
How do I arrange pre-authorisation?
It is important to read your insurance policy documents carefully to see if there are any exclusions on the policy. Then check that your insurance company can pre-authorise claims. Once you have done this, you need to contact the insurance policy with the estimate that your vet has given you. The insurance policy will then contact your vet to confirm everything. Then hopefully give the go-ahead so that your pet can have the procedure performed.
Discussion