Rep. Michael Schlossberg, D-Allentown, is pictured speaking during a House debate.
There isn’t a wave of pet insurance legislation in state legislatures across the country, but it’s becoming a steady trickle.
Pennsylvania is the latest state to consider such legislation after state Rep. Michael H. Schlossberg, D-Alenttown, formally introduced House Bill 660. It was referred to the House Appropriations Committee for consideration.
“We love our pets. For many of us, they are our chosen family and deserve to be protected from accidents as well as unexpected medical expenses.” Schlossberg wrote in his co-sponsorship memorandum. “Many pet parents purchase pet insurance to ensure they have the financial support to deal with a medical emergency should one unfortunately arise. Pet insurance has boomed over the past few years to become a multi-billion dollar industry that covers nearly four million pets in the United States. Despite this boom, there are no laws in Pennsylvania that specifically address pet insurance contracts. Thus, pet families are sometimes left holding the bag for expensive vet bills due to unknown waiting periods or coverage exclusions buried in their insurance policies. Other consumers feel left in the dark as to why they pay higher premiums year after year.
Similar legislation has been introduced in the New York State Legislature, while other states with pet insurance bills into law include Maine, California, Washington and Mississippi. Pet insurance laws in Maine, Mississippi and Washington follow a model pet insurance law adopted in August 2022 by the National Association of Insurance Commissioners. This model requires insurers to clearly disclose exclusions; limits and prohibits waiting periods for certain conditions or circumstances; distinguishes between wellness plans and insurance; and specifies training for people who want to sell pet insurance.
The Associated Press reported in 2023 that the pet insurance industry had annual premiums of about $2.8 billion in 2021, an increase of more than 30% from 2020, according to the National Association of Insurance Commissioners. About 4 million pets are insured in the U.S. According to the American Pet Products Association (APPA) 2023-24 National Survey of Pet Owners, 86.9 million, or 66 percent, of U.S. households reported that own a pet, and will spend an estimated $143.6 billion on veterinary care and products (pet food, treats, supplies, live animals, over-the-counter drugs, veterinary care, product sales, and other services) in 2023, up from 136 .8 billion in real spending in 2022.
Mississippi Sen. Walt Michel, a Republican, said during legislative debate on the Mississippi bill that pet insurance policies mostly cover ailments like broken bones and cancer. Injuries that are expensive to treat, such as a torn ACL in dogs, may have a one-year waiting period under most policies. The Mississippi bill does not apply to pet life insurance.
“Pet insurance provides valuable coverage, but consumers deserve to know what’s in their pet insurance policy, and pets deserve the care they need, regardless of cost.” writes Schlossberg. “That’s why I will introduce legislation to provide crucial oversight of pet insurance policies sold in Pennsylvania. This legislation will create a comprehensive legal framework for selling, soliciting and negotiating pet insurance policies in our state, leaving no room for hidden fees or coverage confusion.
