the price we pay for healthy pets: navigating today’s pet healthcare choices
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Speakers: Jonathan Shapiro & Laura Fortner We love our pets but keeping them healthy is an increasingly expensive proposition for most pet parents. Vet visits, vaccinations, flea and tick and heartworm protection, medications - it can all add up fast! Learn about trends in pet healthcare costs impacting pet ownership today, and some of the tough choices pet parents are making to balance their pet’s health and their household financial health. Also hear about some of the innovative new options available to help pets (and pet parents!) in need.TRANSCRIPT
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The Price We Pay for Healthy Pets
Navigating Today’s Pet Healthcare Choices
Jonathan Shapiro & Laura Fortner
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PetCareRx Introduction
Who we are• 15 years as a leading online pet pharmacy helping millions of pets• Trusted online resources for pet wellness information and advice• Launching new products and services to make pet parenting easier,
more affordable
Mission: Adding love to the world by enhancing the lives of pets and pet parents
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Today’s Pet Healthonomics
Given our business and mission, PetCareRx is in touch with the challenges
pet parents are facing around managing costs of a happier, healthier pet.
Today, we want to share these perspectives with you as pet parents and pet advocates.
1. Pet Healthcare Today: Cost Trends and Cases
2. Difficult Decisions: Pet Healthcare Sacrifices Pet Parents Are Making
3. Smart Solutions: Better Healthcare Choices for your Pet and Purse
We’re also debuting the results of our first PetCareRx Pet Healthonomics Survey
conducted with over 400 US pet parent panel respondents nationwide, August 2013.
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@_petcarerx
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Pet Healthcare Today:
Cost Trends and Cases
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Costs of Pet Ownership Rise, While HHI Declines
Annual costs of pet ownership increased over past 5 years*
Annual Dog Cost $1649, up 15%
Annual Cat Cost $1271, up 28%
Pets are living longer Dog average lifespan 11 years
Cat average lifespan 12 years
Lifetime cost of a pet upDog: $15,370
Cat: $11,305
* APPA report 2007-2008, 2013-2014
** March 2007 vs Feb 2013, pre tax and adjusted for inflation and seasonal factors. http://www.washingtonpost.com/blogs/wonkblog/wp/2013/03/29/chart-median-household-incomes-have-collapsed-during-the-recession/
*** Assumes after tax HHI $36.7K
Median US HH income declined over last 5 years
from $55.4K to $51.4K, down 7.5%**
REALITY CHECK
Average annual dog expenses = 5% of average HH net income***Average annual cat expenses = 3.5% of average HH net income***
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But those are just the averages.
What if your pet gets sick or develops a chronic condition?
That can completely change the picture…
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When Cancer StrikesOver 6 million dogs and nearly as many cats
diagnosed with cancer each year.*
A dog with cancer could need Chemotherapy $6,000 - $10,000
Radiation $5,000 - $7,000
Surgery $2,500 - $6,000
Medication $3,000 per year**
A year’s worth of Leukeran can cost over
$3,000
Not uncommon to pay $7,000 or more
for treatment
If cancer returns, so could these costs
* Source: Animal Cancer Foundation
** Source: PetCareRx Consulting Veterinarian, Lori Awadalla
“Madonna”9-Year OldShih TzuDx: Bladder CancerRx: Chemotherapy, Prescription meds
Out of Pocket
Expense:
$7,500
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When Diabetes is Diagnosed
Pet diabetes is on the rise in recent years –
up 32% in dogs and 16% in cats since 2006*
A cat with diabetes may need: $ 200 vet check-ins/treatments**
$1,860 insulin***
$ 650 for prescription diabetes food****
= $2,700+ additional every year
Cats with diabetes can keep same average lifespan (12.1 years), if treatment is kept up
If diagnosed diabetic at age 6
and needs care for 6 more years,
that’s an incremental $16,200!
* Source: Banfield’s 2012 State of Health report comparing 2006 and 2011** Source: VPI Pet Insurance claims data 2012*** Source: MSRP**** Source: Hill’s Pet m/d Prescription Diet
“Spitfire”
15 Years Old
Dx: Diabetes
Rx: Insulin @
$1600 /year,
Special Foods @
$1100 / year
Out of PocketExpense:
$2,700 / year
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Pet Healthonomics Survey 2013:
Difficult Decisions
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Today’s Pet Parents Highly Concerned About The Rising Cost Of Pet Healthcare Expenses
• 3 out of 4 pet parents concerned about the rising costs of pet healthcare and their ability to properly care for their pets
• Top ranked pet parent fear:
pet may some day suffer from an acute or chronic condition
#1 concern of 43%, top ranked fear
• This health fear comes with financial fear
afraid of being unable to pay for the healthcare needs of a pet
nearly half respondents named this #1 or #2 concern
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Pet Parents Are Willing To Make Lifestyle Changes To Pay For Health Needs Of A Pet
• 82% of pet parents agree:
“I would consider paying almost any amount of money to keep my pet healthy”
• Pet parents are willing to make sacrifices to fund care for a sick pet
– 87% would give up eating out/going out– 76% would cut back on other household expenses– 71% would skip a trip or vacation– A dedicated 7% would move to a less expensive home– 3% would make the tough choice to give one or more pets away to be
better able to care for their other pets
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Today’s Tough Healthcare Choices
In today’s environment, pet parents are faced with tough choices when to spend on key healthcare related areas for their pets including:
Vet Visits
Vaccinations
Protection/Preventatives
Medications
Many are making difficult decisions and choosing between their pet’s physical health and their financial health.
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Tough Choices: The VetTo visit or not to visit?
• Pet parents report most of their pet spending increase year to year is on annual vet checkups
• Between regular check-ups and surgeries, most dog or cat owners racked up about $650 in vet bills last year*
Implications:
27% of pet parents polled are taking their pet to fewer vet visits as a money-saving measure
43% of cat owners only take their cats to the vet when there is an issue
A whopping 67% don’t take their cats in for their yearly check up
Source: American Pet Products Associationhttp://usatoday30.usatoday.com/money/perfi/insurance/story/2012-03-06/pet-insurance-veterinary-expenses/53388516/1
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Tough Choices: To vaccinate or not to vaccinate?
Average cost of vaccinations:*
Dogs: $70-$255 puppy
$40-$100 yearly boosters
Lifetime cost = $510 - $1,355
Cats: $35-$200 kitten
$40-$100 yearly boosters
Lifetime cost = $519 - $1,410
Implications: • 18% of cat parents and 15% of dog parents polled have cut back on
or declined recommended vaccinations as a cost saving measure
*Source: PetCareRx Consulting Veterinarian, Lori Awadalla
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Tough Choices: Flea & Tick, HeartwormTo protect or not to protect?
Average cost per pet for Flea & Tick and Heartworm protection*
$934 lifetime for average dog
$1,027 lifetime for average cat
Implications:
17% of pet parents surveyed admit cutting back on F&T in order to save money 40% cat parents cut back F&T 13% dog parents cut back F&T
7% pet parents admit cutting back on heartworm preventatives
Only 19% of cat parents polled said they regularly purchase HW medication
*Source: VPI Pet Insurance claims data (http://press.petinsurance.com/pressroom/378.aspx) and Banfield State of Pet Health Report 2012
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Tough Choices: MedicationsTo fill or not to fill that prescription?
Medication costs are rising for common conditions:
1 in 10 pet parents confessed they had taken one or more of these
unhealthy steps to cut medication costs: delayed buying a prescription split pills or used less of a prescription than recommended declined to buy a recommended prescription
Medication Condition Price Increase since 2008
Rimadyl Arthritis 53%
Novox Arthritis 32%
Soloxine Hypothyroidism 83%
Methimazole Hyperthyroidism 60%
Salix Diuretic for kidney, liver, heart disease 180%
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Where Pet Parents Are Cutting Back in Healthcare
Area Sacrifice % Total % Dog % Cat
Vet Visits Making fewer visits 27% 23% 40%
Vaccinations Declining recommended vaccinations due to cost
13%
Preventatives Cutting back Flea & TickCutting back Heartworm Meds
17%7%
13%8%
40%6%
Medications/Rx Delaying purchase, stretching use, or Declining to purchase
10%
Vet Visits and Preventatives areas where the most pet parents are cutting back
Cat parents skipping vet visits and dialing back preventatives
more than dog parents
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Pet Healthonomics Survey 2013:
Smart Solutions / Healthier Choices Checklist
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Ways Savvy Pet Parents Are Managing Pet Healthcare Costs and Getting Better Value Per Dollar
To Do List
Buy Generic
Buy Meds Online
Buy Meds @ Local Pharmacy
Visit In-store Clinic
Invest in Pet Insurance
Enroll in Pharmacy Benefits Plan
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Buying Pet Meds Online
How It Works Purchase discounted meds online through online pharmacy website or by phone with rep Get an original prescription from your vet, mail to online pharmacy Vet can also call/fax in your Rx to online pharmacy; online pharmacy will verify the Rx with
your vet Mail orders shipped directly to your home
Considerations Buying meds at the vet’s office is “often a mistake because vets’ markups over wholesale
start at 100 percent and frequently hit 160 percent, plus a $5 to $15 dispensing fee…” according to Consumer Reports
Look for an online pharmacy with VET VIPPS certification, licensed in 50 states A good choice for preventatives and chronic meds Shipping costs / time – not appropriate for all situations, e.g. acute care needing treatment
now
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Purchasing Pet Insurance
How It WorksEvaluate average premiums per year per pet, deductibles, and pet eligibility Pet insurance premiums can average over $80 a month Pet insurance deductibles can average $125 annually or if per incident, around $60
per incident Most pet insurance companies won’t offer complete coverage for senior pets, starting
at around 8-11 years of age In most cases, need to file claims to get reimbursed
Considerations Timing enrollment - when pet would be eligible and you would be likely to use to
make the most of your investment Cash flow - need to pay upfront for premiums and expenses that get reimbursed
when claims filed Be clear on benefits and how they work – does your vet accept or need go to
participating vet? What services are covered and excluded?
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Enrolling in a Pet Pharmacy Benefit Plan
What Is It New Protection Plus by PetCareRx is a prescription card for pets
How It Works Sign up for a membership for $9.99 per month or
as little as $0.25/day with an annual plan Card members then qualify for the lowest
prices on prescription meds and preventatives Orders are placed online or by phone and shipped for free or picked up in-store at a local
participating pharmacy like CVS, Walgreens if available.
Considerations Works for pets already ill or on medications – no dogs or cats excluded No claims to file – just purchase products at rock bottom members-only prices Could save 74% on cancer drug like Leukeran, 80% on insulin – both add up to
thousands of dollars in savings per year Card offers other savings benefits on vet visits, vaccinations, kenneling and more
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Protection Plus by PetCareRx
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Early Reviews on Protection Plus
We look forward to welcoming you and your pet!
www.protectionpluscard.com
The Protection Plus Plan is going to change the lives of pet owners, making it more affordable for people to keep their pets and provide them a long, healthy and happy life.Paws Rating: Protection Plus gets 4 Paws Up! – Robbin and Joe Everett, TPPC.tv Pets Teach Us So Much
I have three dogs, and the cost of veterinary care can be quite expensive.
This seems like a wonderful and effective program.
- Lynzie, Pet Parent and new Protection Plus customer
We have been considering purchasing pet insurance, but consistently decide against
it because coverage seems to be unpredictable. Would love to try an
alternative that helps lower the yearly medical costs for our pooch.
- Krista, Pet Parent and new Protection Plus customer
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Blogger Opportunity: Fall Pet Healthcare Study
Share the Link to Get Access and Incentives• Today was a first look at some trends and behaviors identified in our first Pet
Healthonomics Survey
• Meaningful topic for us and want to learn more from you and your followers
• Next month, we’re opening up the Pet Healthonomics survey to broader pet parent participation
• Include the survey invite and link on your blog or social media pages to– get early access to our Fall Pet Healthonomics results– be recognized as a contributing partner in our next report – earn special PetCareRx incentives for bloggers and followers who
complete the survey
bit.ly/PetHealthSurvey
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Thank You!
Jonathan [email protected]
Laura FortnerSVP & GM, PetCareRx [email protected]
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