What Is A Pet Wellness Plan & How Does It Work?

There are a few key differences between pet insurance and pet wellness plans to consider:

Coverage

Wellness plans allow you to adopt a more proactive approach to your pet’s care by paying a small monthly amount for planned veterinary services. The main difference with pet insurance is that it’s designed to help cover unplanned veterinary services from visits related to:

• Unexpected accidents and injuries
• Common acute illnesses
• Hereditary and congenital conditions
• Chronic diseases
• Medical emergencies

Pet insurance can also help pay for diagnostic tests, surgeries and hospitalizations, imaging, prescription medications, alternative therapies, and behavioral modification — all of which can be extremely expensive out-of-pocket.

However, while insurance coverage is crucial for minimizing exposure to unforeseen veterinary expenses, your policy will not cover anticipated costs related to annual wellness exams, vaccinations, and preventative care. Pet wellness plans can help fill this gap in coverage by offsetting the costs of routine care.

Reimbursement

The amount a pet insurance plan will cover for vet bills depends on the policy’s predetermined reimbursement rate (typically between 60 to 100%). Reimbursements are also capped by the policy’s maximum payout limit, which usually resets each year but can also be capped by condition or by lifetime. You also must pay for vet costs out-of-pocket until you’ve reached your deductible amount, then you can file a claim to get reimbursed.

Wellness plans, by comparison, do not require a deductible. Payout limits are generally much smaller since preventive care typically costs much less than pet medical treatments, especially in the case of emergencies.

Premium

The cost of an annual pet insurance policy is known as the “premium rate,” which is typically billed on a monthly basis throughout the course of the year (although some providers offer pet insurance discounts for paying the annual amount in full). This cost is separate from the money you spend on veterinary services and, therefore, does not count toward your deductible.

Alternatively, pet wellness plans, alternatively, you pay a monthly premium and get reimbursement for your pet’s covered treatments. With a wellness plan, on the other hand, you can pay for your pet's package of services in monthly or annual installments.

Waiting Period

Finally, policy coverage is not effective until the mandatory waiting period has passed. The time period you must wait until your coverage is effective depends on the provider and the plan you choose. Pet insurance kicks in for accidents and illnesses within the first 30 days (and in some cases sooner),

Wellness plans, by comparison, have much shorter waiting periods — coverage is often effective immediately.

Ultimately, wellness plans for pets are designed to make owners more proactive about their pet’s health and fill a gap in coverage for costs not covered by insurance policies.