{"id":22315,"date":"2022-08-01T00:00:35","date_gmt":"2022-08-01T00:00:35","guid":{"rendered":"https:\/\/todaysveterinarybusiness.com\/?p=22315"},"modified":"2024-05-01T11:03:53","modified_gmt":"2024-05-01T15:03:53","slug":"pet-insurance-0822","status":"publish","type":"post","link":"https:\/\/navc.sitepreview.app\/todaysveterinarybusiness.com\/pet-insurance-0822\/","title":{"rendered":"Reap the Benefits"},"content":{"rendered":"

One of the greatest debates in veterinary practice management is this: Which employee fringe benefits should we offer so that our clinics stand out against the competition? A critical reason for that question is that veterinary professionals have left the industry in droves over the past couple of years, forcing practice leaders to ponder how they can retain and attract top talent without breaking the bank.<\/p>\n

Potential employees tend to take jobs that offer a mix of fair wages, on-the-job perks and fringe benefits. A robust benefits package in today\u2019s competitive market can make the difference between a candidate choosing your practice or the one down the street that offers similar base pay.<\/p>\n

Providing subsidized or fully paid pet health insurance as an employee benefit could round out your practice\u2019s compensation and benefits package.<\/p>\n

Benefits to the Employee<\/strong><\/h3>\n

Veterinary professionals are animal lovers. We understand how owning pets brings joy and fulfillment to our lives. As a result, we tend to adopt and take care of more than our fair share of the pet population. The reality then becomes that pet care costs are among the biggest expenses in many of our employees\u2019 households. That is why, according to a Veterinary Hospital Managers Association member survey, over 90% of clinics offer pet care discounts as an employee benefit.<\/p>\n

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EDITOR\u2019S NOTE<\/strong><\/span><\/h3>\n

This CE opportunity is made possible by the support of MetLife Pet Insurance Solutions LLC.<\/p>\n

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But what if a team member\u2019s pet needs an urgent medical procedure or specialized service that your practice cannot provide? An in-house discount won\u2019t help in those situations. According to CareCredit, the average cost of a veterinary emergency hospital visit is $800 to $1,500. Advanced care can run into the thousands of dollars, of course, so at that point, how many of your employees might decline care?<\/p>\n

However, your employees can use their pet insurance at emergency and specialty hospitals as well as your practice. The benefit could save your team members thousands of dollars and show you care about the total health and wellness of their pets.<\/p>\n

Additionally, a Capital One study concluded that 73% of Americans rank finances as the No. 1 stressor in their life. Stress correlates directly with work performance. Stressed employees<\/a> have difficulty concentrating and recalling information, and they tend to perform below standards. Simply put, offering pet health insurance as an employee benefit can go a long way in reducing the stress of veterinary costs.<\/p>\n

The group of practices I work for has offered pet insurance to its employees for nearly a decade. We found that our team members are far more comfortable talking to clients about insurance because they are covered. They see the advantages and share their experiences. Such bonding resonates with clients far more than handing out an insurance brochure.<\/p>\n

Some of our employees tell real-life stories of late-night visits to an emergency clinic and how they could focus on their pets\u2019 health and not the debt they would have had to accrue to pay for the services. In the case of my dog, Maypop, a 10-year-old Cavalier King Charles spaniel, having her insured causes me much less stress when she sees a veterinarian. (Shall I remind you how unhealthy Cavaliers are?)<\/p>\n

Benefits to the Employer<\/strong><\/h3>\n

Pet health insurance is a winner for three chief reasons.<\/p>\n

1. Lower Costs<\/strong><\/p>\n

Before offering another employee benefit, a veterinary practice owner or manager must consider many factors. In the case of pet health insurance, is there room in the budget? Minimizing the tangible cost of such a program is possible.<\/p>\n

For example, a practice providing insurance no longer discounts the cost of veterinary care for an employee\u2019s pet. Therefore, the practice makes a fair margin on services rendered, and the clinic generates additional revenue. Such a return on investment can outweigh the cost of the insurance premiums. Additionally, non-discounted services won\u2019t depress the earnings of an associate veterinarian who is compensated based on production.<\/p>\n

In the care of Maypop, the hospital has recouped more money than the cost of her insurance premium, resulting in a win-win-win for the practice, Maypop and me.<\/p>\n

2. Better Pet Care<\/strong><\/p>\n

Employees who can\u2019t afford veterinary care at their practice are thrust into an awkward position. However, pet insurance all but alleviates the unease and ensures that we honor one of our core values: providing high-quality, progressive medicine. A side effect of that is our team members are more confident when presenting treatment plans to a client because they perceive our services as a fair value and something they would gladly approve for their pets. The practice leaders also show that they care about the well-being of their team members and the employees\u2019 pets. We all want to see our teams grow and flourish personally and professionally, so what better way than pet insurance to show you care?<\/p>\n

3. Improved Recruitment<\/strong><\/p>\n

The pool of job candidates is shrinking in nearly all hospital departments. In such an environment, you must ask, \u201cWhat makes our practice stand out to potential employees?\u201d<\/p>\n

A Glassdoor survey showed that 60% of the respondents strongly consider the employee perks and benefits before accepting a job offer. In the same study, 80% reported that they would prefer additional benefits over a pay increase. Therefore, offering a benefits package that is attractive and maximizes the practice\u2019s investment in the team is more important than ever.<\/p>\n

The Challenges<\/strong><\/h3>\n

Any benefits change comes with pros and cons. First, speak with your accountant or attorney before adding pet health insurance as a perk. You\u2019ll want to know whether the coverage would be considered taxable income for the employee. You\u2019ll also want to ensure that the benefit is fair and equitable for all employees.<\/p>\n

One challenge in your decision-making process might be calculating the cost of monthly premiums. Some insurers can assist you, the employer, in offering the program.<\/p>\n

Practice leaders also must determine how many employee pets are covered. For example, is the number unlimited, or will it rise incrementally based on a person\u2019s tenure? Also, does the insurance apply to more than cats and dogs?<\/p>\n

Other challenges you might face are mostly logistical and unique to your practice. When considering offering pet health insurance as an employee benefit, ask yourself:<\/p>\n