Three ways to manage surging pet care costs

NEW YORK, Sept 6 (Reuters) - Joy Benson may have a career as an executive personal assistant in Dallas, but her real boss is short of stature, very hairy, and enjoys chewing on tennis balls. His name is Jasper, and he is a Shih Tzu. While 11-year-old Jasper is certainly the apple of Benson’s eye, the cost of keeping him healthy is going up and up.

There are regular dental cleanings because of gingivitis: the last two of which cost more than $1,000 because of tooth extractions. There are regular grooming sessions -- prices rose from $60 a pop to close to $100 every time. Then there was surgery for bladder stones ($1,500), which led to the need for pricey prescription food. After Benson was laid off, she turned to GoFundMe to help pay Jasper’s bills.

“This will be my last dog,” says Benson, who figures she has spent more than $25,000 on Jasper's care. It is a familiar refrain from pet parents, many of whom are overwhelmed with the price of care. Indeed, Americans spent $147 billion on their pets in 2023, according to the “State of the Industry” report by the American Pet Products Association. That includes $64.4 billion on food and treats; $38.3 billion on vet care; $32 billion on live animals, supplies, and medicine; and $12.3 billion on other services like boarding, grooming, insurance, walking, and training.

“It is disconcerting how quickly and aggressively prices have gone up, leaving pet owners feeling taken advantage of,” says Erin Witte, director of consumer protection for the Consumer Federation of America (CFA). Vet care seems to be an inflationary hot spot. From July 2023-July 2024, the cost of veterinary services rose 6.2%, according to the Bureau of Labor Statistics.

Senator Elizabeth Warren blames private equity firms for buying up veterinary practices and consolidating the industry into fewer hands. Those firms “have spent billions on buying up veterinary practices and then profiteering while reducing quality of care, increasing prices for pet owners, and making working conditions even harder for veterinarians,” Warren wrote in a recent letter with fellow Senator Richard Blumenthal.

Thanks to the cost of pet care, 91% of pet owners report experiencing financial stress, according to a recent survey of dog owners by USA Today.

Dog Deezi from an Istanbul shelter lies next to its owners Caroline and Meike in Haarlem, Netherlands September 3, 2024. REUTERS/Piroschka van de Wouw.

Here are some tips to keep your finances – along with Fluffy or Fido – healthy.

Beware the hard sell

Obviously, we all want to give our pets the moon, but the reality is we do not have unlimited funds. Use your best judgment about what your pet truly needs.

“I adopted a puppy last week and was immediately given a sales pitch for a monthly ‘pet wellness plan,’ a subscription plan that claims to cover routine visits and immunizations, but excludes sick and emergency visits," says CFA’s Witte. Witte's advice? Create a savings account for pet care and stash money there each month rather than paying for a wellness plan.

Consider Insurance carefully

The growing field of pet insurance is definitely an option and can help with major costs. After Denver communications consultant Maureen Carrig rescued Sasha (a Yorkie/Schnauzer mix) back in 2020, the pup was diagnosed with cancer, and had to undergo two surgeries. Her policy with the firm Trupanion “thankfully covered a substantial amount,” she says.

Just be clear about what insurance covers and what it doesn’t. Many policies do not cover routine checkups, for example. The costs they do cover may first be applied to the deductible, which can be high. Of course, coverage costs have been going up, too. The average accident and illness policy premium for dogs in 2023 was $676 a year, or $56 a month, according to the North American Pet Health Insurance Association. That compares to $595 in 2019.

Research your options

If you can’t afford proper care for your pet, don’t give up hope. Enter your zip code at Pet Help Finder, to discover what “financially friendly” resources are available in your community. Animal shelters, community clinics, and veterinary colleges often provide emergency veterinary assistance for free. Check out this resources page from the Humane Society.

“Some areas have clinics that offer reduced fees based on income, and many vets offer options to spread costs over time,” suggests Melissa Caro, a financial planner in New York City. “There are options for financial assistance, like The Pet Fund and Red Rover. These organizations take this seriously and are often well-funded to help people care for, rather than abandon, their animals.”