A PPO for your pooch?
No, but Aetna is offering more traditional medical policies for pets as it branches out for the first time from humans to cats and dogs.
The Hartford-based health insurer began underwriting the policies last week for Pets Best Insurance in six states, mostly in the West, and in the District of Columbia. Aetna eventually expects to sell in all 50 states.
Insurance regulators in Connecticut approved sales of the policies Wednesday, and on Thursday, Aetna’s president, Mark Bertolini, bought the first policy in Connecticut for his 5-year-old golden retriever, Lucky.
Bertolini said the policies aren’t a huge move for Aetna, but the insurer believes the Aetna name plus sales through the offices of 40,000 veterinarians nationwide will be a potent combination.
The policies are traditional indemnity plans that pay 80 percent of costs, after a deductible, for each illness. The coverage also will be offered through the Pets Best website, and premiums typically range between $300 and $480 a year, depending on the plan.
The coverage is for routine checkups, emergency room visits, lab tests, prescriptions and other services. There is limited coverage for pregnancies, certain behavioral and hereditary conditions and acupuncture and holistic therapy.
Aetna’s foray into feline and canine territory comes at a time when many health insurers are looking for ways to keep growing as the economy stumbles and employers lay off workers.
Pet insurance has been around since the early 1980s. But Aetna decided to offer the policies after a new customer, the American Veterinary Medical Association, asked if the insurer would develop a pet insurance policy.
Market research, which included Aetna’s own human members, showed that more than half of consumers polled might be interested if Aetna offered pet insurance policies, according to Dan Fishbein, head of new product business at Aetna.
About 60 percent of American households have a pet and spend $10 billion a year on veterinary care, according to industry statistics. The country has about 160 million pet dogs and cats, the statistics show.
Fishbein said the premiums vary by the age and breed of the animal, among other things. Deductibles range between $100 and $500 for each illness, depending on the plan. There aren’t plans to develop managed care for pets, Fishbein said.
Coverage could expand to other pets in the future. Some policies cover exotic birds and reptiles.
Pet insurance has its critics, some saying its better to save for the big expenses. But Bertolini said he believes the policies are worth the cost.
“You just never know what the expense can be,” Bertolini said. “The vet I go to has his own MRI machines, and that’s not cheap.”
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Courant Staff Writer Diane Levick contributed to this story.
