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In 2024, pets are experiencing lifestyles much like ours. They enjoy day care, spas, puppuccinos and even pupcakes on their birthday!
In the past, veterinary care may have been perceived to be simple and straightforward. Veterinarians typically practiced in small, independently owned clinics, and treatment options for sick or injured pets may have been limited for many different reasons. Nowadays, animal hospitals boast advanced technology including dedicated ultrasound, CT and MRI machines; 24/7 intensive care units with specialised veterinary teams for cancer, cardiology, ophthalmology and much more. All of these advancements are beneficial for both pets and their owners1.
However, just as veterinary care has improved to reflect human health care, it has also inherited some of its own challenges, particularly rising pet health care costs2.
So why are pet health care costs rising?
Unsubsidised veterinary care
Veterinary care is known for providing a high level of medical treatment, much like what we see in human healthcare. However, a key difference is that while human healthcare often benefits from government subsidies, veterinary care usually does not. This means that the full cost of pet medical services falls directly on pet parents. As a result, when visiting the vet, pet owners may face bills that seem higher compared to what they might expect from their own healthcare experiences, where subsidies help reduce the costs. This difference can be surprising and sometimes challenging for pet parents, especially when their pets require complex or emergency treatments.
Ageing of pets
Pets age at a more rapid rate than humans – PetSure analysis shows that one human year is equivalent to around seven dog years*. Just like humans, as pets age, they become more prone to illness, increasing the likelihood that the pet will need veterinary care. While pets can experience accidents and illness at every age, older pets are more likely to experience chronic conditions like arthritis and cancer**.
Advances in veterinary medicine, diagnostics, and treatment options
Treatment options and sophisticated diagnostics have transformed pet healthcare, mirroring the high standards of human medical care.
Specialised medications: The introduction of biological treatments and specialised medications has greatly improved the management of chronic conditions and diseases in pets. These innovations, including immunotherapy and targeted therapies, offer more precise and effective treatment plans, contributing to pets’ overall health, longevity and quality of life.
Diagnostic advancements: Veterinary clinics now utilise advanced diagnostic imaging tools such as CT scans and MRIs. These technologies allow for early detection and precise monitoring of pet health issues, enabling veterinarians to develop more accurate and timely treatment plans. For instance, early detection of cancer can lead to less invasive treatments and better outcomes for pets.
Treatment options: Modern veterinary practices offer a range of advanced treatment options. Minimally invasive surgeries, comprehensive cancer treatments, and state-of-the-art rehabilitation therapies are now available, bringing pet healthcare to a level that is comparable with human healthcare. These advancements ensure that pets receive the best possible care for various health conditions.
Specialised care facilities
The establishment of specialised care facilities has further enhanced the standard of veterinary care. Intensive care units (ICUs) for pets provide critical care for severe health conditions, while sophisticated rehabilitation facilities aid in the recovery and rehabilitation of pets with injuries or surgeries. These facilities are equipped with advanced technology and are staffed by specialists who are trained to handle complex medical cases, ensuring pets receive comprehensive and specialised care.
Cost considerations
While these advancements in veterinary medicine can significantly improve pets’ health outcomes, they also bring higher pet health care costs. It’s important for pet owners to be aware of these financial aspects to manage expenses effectively.
Cost of healthcare: The costs associated with pet healthcare are rising, often reaching levels comparable to human healthcare expenses. For example, advanced diagnostic tests like MRIs can cost hundreds of dollars, and specialised treatments, such as chemotherapy, can run into thousands of dollars. Routine care, including vaccinations and dental cleanings, has also seen price increases due to the enhanced quality and scope of services offered.
While these advancements can significantly improve pets’ health outcomes, they also bring higher pet healthcare costs. It’s important for pet parents to be aware of these financial aspects so that they can better prepare for increased pet health costs.
*PetSure internal data 2016 – 2023. Where appropriate comparison to relevant industry studies used to validate trends
**Based on PetSure claims data, 2023 calendar year
Sources
1 AVA Submission on Proposed Changes to VET Board Regulatory Fees 2023-24 (https://www.ava.com.au/globalassets/authors/ava_submission_proposed-changes-to-vet-board-regulatory-fees-2023-24-final.pdf)
2 Unpaid veterinary services performed for public good (https://www.ava.com.au/policy-advocacy/policies/professional-practices-for-veterinarians/unpaid-veterinary-services-performed-for-public-good/)
AVA Submission on Proposed Changes to VET Board Regulatory Fees 2023-24 (https://www.ava.com.au/globalassets/authors/ava_submission_proposed-changes-to-vet-board-regulatory-fees-2023-24-final.pdf)
PetSure internal data 2016 – 2023 (Where appropriate comparison to relevant industry studies used to validate trends)
Pet Health Insights from Vets in the Field: https://petsure.com.au/knowledge-hub/pet-health-insights-from-vets-in-the-field/
PetSure internal data 2016 – 2023 (Where appropriate comparison to relevant industry studies used to validate trends)
Pet Health Monitor 2024: https://petsure.com.au/pet-health-monitor
PetSure internal data 2016 – 2023 (Where appropriate comparison to relevant industry studies used to validate trends)
Pet Health Monitor 2024: https://petsure.com.au/pet-health-monitor
Australia’s Health 2024, Australian Institute of Health and Welfare: aihw.gov.au (relevant for general healthcare advancements comparison)
PetSure internal data 2016 – 2023 (Where appropriate comparison to relevant industry studies used to validate trends)
Pet Health Insights from Vets in the Field: https://petsure.com.au/knowledge-hub/pet-health-insights-from-vets-in-the-field/
TGA Fees and Charges Proposal Consultation Response: https://consultations.tga.gov.au/regulatory-practice-section/public-consultation-tga-fees-and-charges-proposal/user_uploads/pta-2023-24-consultation-response—tga-fees-and-charges-proposal.pdf
Human vs. Pet Healthcare Comparison: https://petsure.com.au/knowledge-hub/human-vs-pet-healthcare-comparison/
Pet Health Insights from Vets in the Field: https://petsure.com.au/knowledge-hub/pet-health-insights-from-vets-in-the-field/
Australia’s Health 2024, Australian Institute of Health and Welfare: aihw.gov.au (relevant for general healthcare advancements comparison)
PetSure claims data, 2023 calendar year
Pet insurance can help by covering a portion of the eligible vet bill if the unexpected happens. Because it is difficult to predict the costs of veterinary care, it can help to have measures in place to help prepare for the unexpected. Check out our partner network and explore our policy tools to find a pet insurance policy.
Not all conditions or items are covered by Pet Insurance. Refer to the applicable Product Disclosure Statement for information about coverage and exclusions.
