Equine Medical Insurance - Can You Really Be Without It?

Without a doubt the economy has affected us all in the past 2-3 years.  You cannot turn on the news, open a newspaper or click on to your favorite search engine without mention of the impact that the recession has on our lives.  It may be a story on the unemployment rate, an increase in foreclosures, or losses in the stock market.  These stories scare us all at some level.  We wonder if the money is still out there as some say and people are just holding it close because they are afraid to spend.  Or, is it really as bad as it sometimes seems as we watch friends and loved ones lose jobs, houses, and their “American Dream”.   I am sure reality is somewhere in the middle of all this, and that truly each of us have a different reality that cannot be depicted by some general media portrayal.  Where does this leave us as horse owners and equine professionals?  It leaves many struggling to provide adequate nutrition, maintain every 5 week farrier care, and the ideal medical wellness care that their beloved equine companion needs.  If it is difficult to provide the “basics”, what happens when the horse gets sick?  Too often it ends in self-medicating without necessary veterinary attention and if the condition is severe enough it ends with humane euthanasia instead of lifesaving veterinary care.

So, can we afford to be without equine medical insurance?  My answer is emphatically “no”.  I think there are many misperceptions about equine medical insurance and too many people that don’t even know it exists.  I will not try to understand anyone’s personal budget, but the reality is a $200-600 annual fee for medical insurance is a drop in the bucket compared to a $6000-9000 estimate for colic surgery at 2:00 in the morning.  As an equine surgeon at a referral hospital, I witness too many heartbroken horse owners faced with having to choose euthanasia for their equine companion because surgery is cost prohibitive.   Could their horse be saved if major medical insurance took cost out of the equation?  Often times the answer is “yes”. 

So, let me provide some facts on equine medical insurance.  Please understand I am not an insurance agent so don’t contact me for specifics on policies.  Should you read the fine print?  Yes!  Should you fully understand what you are purchasing before you purchase it?  Yes!  Are there qualified equine insurance agents who are also horse owners and horse lovers who want to help you?  Yes!  Equine medical insurance always accompanies a mortality policy on the horse.  There are several companies that provide equine major medical insurance, and you should do your research to determine which company will provide the policy that best suits your needs.  One company that we deal with routinely is Great American Insurance.  Great American Insurance has worked hard to provide a good service to horse owners at an affordable price including 10 month payment plans.

At this time with Great American Insurance, a horse owner can purchase a minimum mortality policy ($5000-6000) combined with a major medical endorsement of either $10,000 or $15,000 for $575 or $675 annually respectively.  The policy premium can be paid over 10 months if desired.  Even my fuzzy math tells me this means for $57-67 per month (for 10 months out of the year) I can have peace of mind knowing that if my horse should suffer a life threatening incident, I CAN get the necessary treatment by a trained veterinary professional.  

What about co-payments and deductibles you ask?  There is a $250 deductible on the Great American Insurance policy.  There is also a 30% co-payment for lameness diagnostic tests.  What this means to you is that if your horse is lame and needs an MRI that cost $1500, under this plan you would be responsible for $450 and the insurance company would pay the remaining $1050.  This assumes you have already had a lameness exam performed by your veterinarian who recommended the MRI in the first place; thus your $250 deductible has been met.  If however, your horse is in severe abdominal distress and requires emergency colic surgery and is discharged with a $10,000 bill, Great American Insurance pays $10,000 (or $9750 if you have not already satisfied your $250 deductible).   So, can horse owners afford to be without major medical insurance in this economy?  Again, I emphatically answer “no”!

A common misperception about major medical insurance is that “my horse is too old to be insured”.  This may be true in some cases, but the age limit has recently changed for the described Great American Insurance policy.  Your horse is now insurable up to 20 years of age.

What about options with other companies?  There are many other options, and again I encourage you to do your own research.  One other example I will provide is for a company called Catlin Insurance Company.  This company provides a policy with a $5000 mortality benefit and a $5000 Emergency Colic Surgery (ECS) endorsement for $200/year.  There is no payment plan with this policy, but still a great value and provides some comfort in an emergency colic situation.    There are obvious limitations to this plan as the medical portion of the policy is only for emergency colic surgery.  Now if you are a gambler, odds are that if your horse requires emergency surgery, it will be for colic.  However, horses are horses, and the emergency might not be colic related.   In that situation under Catlin Insurance, all of the liability would be yours.

 Personally, I feel strongly that in any economy, especially our current one, horse owners cannot afford to be without major medical insurance for their horse.  Why you ask?  Because I see too many horses that would have a very good chance of survival and full recovery if the cost of treatment were not an issue.  Too often the decision is humane euthanasia solely due to financial constraints.  I encourage every horse owner that does not have major medical insurance to investigate on their own what policy would work best for them and their horse.   If you don’t currently know of an equine insurance agent to help you with your research, you can contact Ms. Rhonda Mack with Jerry Parks Insurance Company at RMack@jerryparksinsurance.com for further information.  Any other questions about the health of your horse can be directed to LKuebelbeck@Surgi-CareCenter.com.

This article originally appeared in Horse & Pony magazine in June, 2011 and is reprinted with their permission.