💰 Federal Bill To Make Insane Vet Costs More Affordable!

New Bi-Partisan Bill Aims to Make Veterinary Costs More Affordable for Millions of Americans

The PAW Act just landed in Congress, and it's about to make life a whole lot furrier and friendlier! Thanks to Congresswomen Deborah Ross and Claudia Tenney, pet owners can soon use their Health Savings Accounts (HSAs) or Flexible Spending Accounts (FSAs) to pay up to $1,000 for vet bills or pet insurance! Service animals? They’re VIPs with no expense limits! 

Major props to MetLife, AVMA, and HABRI for wagging their tails in support of this purrfect bill!

We read the bill…it’s only 4 pages long.  Here’s the gist:

The People and Animals Well-being Act of 2024 (PAW Act) seeks to amend the Internal Revenue Code to allow certain veterinary expenses to be treated as medical care for tax purposes. This includes expenses for pets and service animals, which can be covered by health savings accounts (HSAs) or flexible savings accounts (FSAs). Specifically, it allows up to $1,000 annually for veterinary care and $1,000 for pet insurance. The bill also includes adjustments for inflation and defines key terms such as "pet," "service animal," and "veterinary care"

And this bill couldn’t come at a more urgent time when consumers are seeing massive spikes in veterinary healthcare costs.

According to a recent article by The Atlantic, “Americans spent an estimated $38 billion on health care and related services for companion animals in 2023, up from about $29 billion in 2019.” Sheeeeesh.

Rising Vet Healthcare

According to the Bureau of Labor Statistics, urban veterinary services saw a 7.9% increase from February 2023 to February 2024, a rate more than 2½ times higher than the average increase for all consumer items. Over the past two years, the cost of urban vet care has risen by 11%, and it has surged by nearly 60% over the last decade.

Why Have Vet Costs Been Rising?

Veterinary healthcare costs are rising due to the growing corporate ownership of clinics and the increasing status of pets as family members. As private equity firms invest heavily in the veterinary sector, smaller practices are absorbed into large corporations like Mars Inc. and JAB Holding Company. This consolidation leads to higher prices for pet care, as corporations focus on profit, pushing expensive procedures and tests onto pet owners. 

The cost of vet care has far outpaced inflation, with Americans spending $38 billion in 2023, up significantly from previous years. Even as general inflation has stabilized, veterinary services have continued to see sharp price increases. As corporations take over more clinics, the pressure to maximize revenue rises, often resulting in higher fees for routine visits and treatments. 

Unlike human healthcare, the veterinary industry lacks significant regulatory oversight, allowing for unchecked price increases. Unlike Medicare for humans, there’s no major entity pushing back on rising costs in the vet industry. Consumers are forced to pay out-of-pocket at the time of service, regardless of the urgency of their pet’s condition, making the financial burden overwhelming for many. 

Corporate chains like Mars-owned VCA and Banfield have been criticized for prioritizing profits over care. Some pet owners have reported skyrocketing bills after routine visits and have expressed frustration over the lack of transparency. The increased focus on branding by large corporations masks the true ownership of many local clinics, leaving customers unaware that they are dealing with multinational companies. 

This corporatization has also led to concerns over declining quality of care. Vets working for independent practices report more job satisfaction and less pressure to generate revenue compared to those working for corporate chains. Studies suggest that corporate-owned clinics tend to charge higher prices while prioritizing profit, which can sometimes lead to unnecessary tests and treatments. 

The growing corporatization of veterinary care has drawn attention from regulatory bodies, such as the Federal Trade Commission, which is investigating the impact of private equity in the sector. As prices continue to rise, many pet owners are forced to make difficult decisions about the care of their animals, with some even surrendering pets due to unaffordable medical bills.

To put a pin in this discussion, it’s great to see legislative reform that seems to address the rising costs of pet ownership in this country.  It’s helpful, but we have a long road ahead.  As the pet industry continues to go through a massive evolution (especially after the pandemic, with more people opting for pets over children), continual reinvention and reform will be necessary to course-correct how each sector manages increasing customer demand and rising cost of…well…everything.

Chonkfest Tickets Now On Sale!

The most epic doggy block party is coming to the nation’s capital!

Get ready to party with Hammy & Maxine at a very special Halloween-themed Chonkfest, October 18-20th at Bark Social in Bethesda, Maryland.

Tickets are going quickly so get yours now!

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Today’s Last Laugh:

You guys this bear just wants to relax…

@courtneyvucekovich

Replying to @lindsayyywatt #hanmock #bear #foryou