Pet Insurance That Pays the Vet Directly
While most pet insurance policies operate on a reimbursement method, some companies will pay the veterinarian directly. This is commonly referred to as vet-direct-pay.
Key Takeaways
- There are pros and cons to this method. Direct payment reduces your out-of-pocket expenses, but you could still receive a bill if your insurance company later denies your claim.
- Check if your vet accepts direct payments before your visit, since fewer vets offer it compared to reimbursement.
- Trupanion, Pets Best, and Healthy Paws pay vets directly, while others partner with these companies to provide pet insurance, making direct pay an option.
Typically, when you go to the doctor, you pay your deductible or co-insurance, and your insurance pays the rest. Pet insurance direct pay follows a similar process. You pay a portion of your pet’s medical bill instead of the full amount, reducing your out-of-pocket expenses.
The exact process can vary depending on the company, but here’s an overview of what you may experience.
- Find a veterinarian: Your veterinarian and insurance company must agree to a vet direct payment model. Your insurance company might only work with veterinarians in a specific network, or you may have to request that your insurance company pay them directly. Either way, verify that this option is available before your appointment.
- Submit claim paperwork: You or the vet will then submit the claim to the insurance company, and the insurer will determine the payment amount. You typically have to do this before your appointment.
- Vet receives payment: Next, your insurer will pay the vet directly based on the agreed-upon amount.
- Pay the remaining amount: You’ll pay the remaining amount directly to the vet. This is typically your deductible plus the vet bill minus the reimbursement rate.
What do you pay out-of-pocket?
When operating under the vet direct-pay option, you must still pay a portion of the vet bill. This is typically the deductible (if you haven’t met it yet) plus a percentage of the balance after the deductible is met.
Consider this example: Your pet has a $1,000 vet bill, and your insurance policy has a $100 deductible and a 90% reimbursement rate. If you haven’t met your annual deductible, here’s the breakdown:
- Deductible: $100
- Balance after the deductible: $1,000 – $100 = $900
- Reimbursement (90% of $900): $810
- Your out-of-pocket cost: $100 (deductible) + $90 (10% of the balance after the deductible)
In this example, you pay $190 out-of-pocket, and your insurance pays the vet $810.
Some pet owners prefer vet direct pay for several reasons. Here are a few common benefits of this payment method.
- Reduce out-of-pocket expenses: With the traditional reimbursement method, you must pay the full vet bill up front. However, with vet direct pay, you only pay a portion of the bill, making medical care for your pet more affordable.
- Quicker claims approval: You typically submit your claim before you leave the vet’s office, so the approval process is quicker.
While this payment option may be more convenient, it also has potential downsides. Here are some considerations.
- Limited providers: You can only work with a veterinarian with whom your insurance company has an agreement. This may greatly limit your options compared to the reimbursement route.
- You may receive a bill: Your insurance company could deny a claim after your visit and send you a bill for the remaining balance.
While most companies only offer payment reimbursement, some companies will pay the vet directly. Here are some options, but availability is subject to change, and this list isn’t exhaustive.
Trupanion
Trupanion made our rating of the best pet insurance companies for direct pay. It can pay veterinarians directly if they have the company’s software. You can find a list of participating companies on the Trupanion website. The website states that 60% of direct payments are made within just 60 seconds.
Chewy and State Farm also partner with Trupanion to offer pet insurance. In doing so, the vet direct pay option is available through these companies as well.
Pets Best
Pets Best has an optional feature that pays the vet directly. You must complete a veterinarian reimbursement release form when you submit your claim. Once your Pets Best claim is approved, the reimbursement amount is sent to the veterinarian.
Progressive also partners with Pets Best to offer pet insurance, so you can take advantage of this payment method with Progressive.
Healthy Paws
You must contact Healthy Paws ahead of the vet appointment to request that they submit payment directly. This is required so they can coordinate the payment in advance. However, the company states that approving the direct payment doesn’t guarantee claim approval. Also, this option is only available to vets in a specific network.