Pet insurance a growing workplace perk.

• Author: Melani, Debra
• Position: HEALTH CARE

IF LASSIE WERE TO TROT INTO A veterinary hospital today, the Hollywood collie who stole America's heart in the TV show of the '50s-'70s would probably fall over in shock, no command necessary. The medical field for her furry friends has reached such a high level of care, even unsuspecting owners rushing Fluffy and Fido through the doors might wonder if they took a wrong turn and entered a human hospital.

But along with this specialized medicine, which includes everything from PET scans and CT scans to physical therapy and chemotherapy, comes a growing price tag. Something as seemingly small as a swallowed sock can set a dog owner back $4,000. The inflation has led to an uptick in what was once a highly niche market, with more Americans buying pet insurance, and more employers offering it.

"The sophistication of veterinary medicine has been amazing over the past 10 years," said Curtis Steinhoff, director of corporate communications for VPI Pet Insurance, the company that issued its first policy to Lassie in 1982, when the famous canine was still making movies. "Pretty much anything you can do for a human medically you can do for a pet medically," Steinhoff said. More than S20 billion was spent on U.S. veterinary services in 2011, with one in five owners seeking emergency care for their four-legged pals, according to the marketing firm Packaged Facts.

EMPLOYERS TAKE NOTE

In response to the growing market and a move toward voluntary employee benefits, more companies are offering pet insurance as part of their benefits packages. "One in three Fortune 500 companies 110W offers VII pet insurance," said Steinhoff; adding that his company works with nearly 3,000 organizations, 80 of those based in Colorado.

Today's employers, faced with skyrocketing benefits costs, are always on the hunt for inexpensive perks for luring and retaining quality workers, according to JoAnne Novak, vice president for new business development for Hartville Group, which entered the U.S. pet-insurance market in 1997, which was until then cornered by VPI.

"Employers love the ability to be able to say to their employees: We care about your health, and we also care about the health of your pet," Novak said. It's that strengthening bond between pet and owner today that has combined with high costs to jump-start his industry, Steinhoff said. "Pets have gone from the backyard to the living room to the bedroom to sleeping on the bed."

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