AAHA SEAL OF ACCEPTANCE
Frequently Asked Questions
What is the purpose of the AAHA Seal of Acceptance?
The American Animal Hospital Association (AAHA) Seal of Acceptance program was established to help pet owners make educated decisions regarding quality pet care.
AAHA wants to help pet owners make the right decision about how to meet their financial responsibility for the care of their pets. The cost of life-saving or life-extending care for a pet may go beyond an owner’s reasonable financial means, leaving the owner with the painful decision to euthanize a beloved pet or face major debt.
The Association urges all pet owners to seriously evaluate how they would handle the costs of care should they encounter the need for catastrophic or major veterinary expenses. For those who believe they would not have the means to handle such expenses through savings, credit cards or medical payment cards, pet health insurance merits serious consideration.
Although pet insurance policies are available with various limits, coverage, benefits, exclusions and deductibles, AAHA believes that most pet owners need coverage for catastrophic expenses. Many pet owners can manage expenses up to $500, but would have difficulty with expenses beyond that level. The Association has urged the pet insurance industry to make high-deductible policies available. These higher deductibles reduce premiums and make insurance a more viable option for many budgets.
Will AAHA be selling pet insurance?
AAHA does not sell pet insurance policies or endorse individual pet insurance companies. We are providing an acceptance seal to increase pet owner education and awareness regarding the need to meet financial responsibility. The Seal also is intended to encourage pet insurance company behavior that we believe is in the best interest of pets.
Does AAHA recommend alternatives to pet insurance?
The AAHA position statement on financial responsibility addresses options for paying for care, including savings, credit cards, medical payment cards and pet insurance. The AAHA financial responsibility position statement and additional information can be found by clicking here.
What is the difference between a wellness plan and pet insurance?
Some pet health care providers offer a wellness plan, a preventative package of services offered at a set rate. This package of services can include vaccines, annual check-ups, blood-work, etc. Wellness plans vary by company, but usually cover pre-planned events. Pet insurance, however, is intended to cover unplanned events. AAHA recommends that pet owners carefully analyze and weigh all options prior to selecting any plan or insurance provider.
Does AAHA set pet insurance “reasonable cost” amounts?
AAHA does not set or have any responsibility in setting reasonable costs. Each pet insurance company sets its own schedule of benefits or “reasonable costs.” Some companies reimburse pet owners based on their own schedule of benefits. Others compensate “reasonable costs,” which is an amount they are willing to reimburse a policy holder for a certain medical service or procedure. The Association recommends that pet owners talk to their pet insurance company or prospective provider about their “reasonable costs” before they purchase.
Why is the AAHA Seal of Acceptance only available for high-deductible policies?
When the cost may go beyond reasonable financial means, many pet owners are forced to euthanize their pet or incur burdensome debt. Studies have shown that the majority of pet owners can manage expenses up to $500, but would have difficulty with expenses beyond that level. AAHA has urged the pet insurance industry to make high-deductible policies available that we believe are in the best interest of pets. These higher deductibles reduce premiums and make pet insurance a more viable option.
Is the AAHA Seal of Acceptance exclusive to a certain pet insurance company?
The AAHA Seal of Acceptance will be available to any pet insurance company that offers a high-deductible policy that meets the program’s criteria. It is important to note that it is the high-deductible policies of the companies that will receive acceptance, not the companies themselves.
Are there certain criteria that need to be met before a policy receives the AAHA Seal of Acceptance?
The AAHA Seal of Acceptance can be awarded to pet insurance policies with high levels of deductibles of at least $500. Additional and higher deductibles are encouraged, assuming they meet the criteria for the $500 deductible policy. Coverage, benefits and exclusions for the higher deductible policies must be at least equal to other policies offered by the company.
Marketing, sales and promotional materials must include the availability of the $500 deductible (or higher) policy option and may not steer pet owners away from these options. The seal may not be used on any materials that do not include the availability of high-deductible policies.
Pet health insurance policies of the company must be underwritten by companies with an AM Best rating (an independent third-party evaluation that subjects all insurers to the same rigorous criteria) of B+ or better. The company using the seal must be licensed to sell the high-deductible policies in all of the states or provinces in which it is licensed. For existing companies, the high-deductible policies must be approved for sale in at least 50 percent of the states in which the company is licensed, and the policies must have been filed in all other states where the company is licensed.
Additional terms and regulations apply.
Will the AAHA Seal of Acceptance be awarded to policies that limit veterinary care options?
The policies of the company must allow the policy holder to seek care from a licensed veterinarian of their own choosing. The Seal of Acceptance will not be awarded to companies that require pet owners to use the services of practices that are only included in a network or similar grouping.
How can a pet insurance company apply for the AAHA Seal of Acceptance?
Companies seeking the AAHA Seal of Acceptance must submit copies of all policies available, copies of existing marketing, sales, and/or promotional materials (including web pages), information regarding the company’s underwriter, and a list of states in which the company is licensed to sell the $500 and $1,000 deductible policies. In addition, the company must demonstrate its filing as an “admitted’ carrier and demonstrate approval in at least half of the states and filing in all remaining states.
How often does AAHA re-evaluate pet insurance policies to ensure that they are in compliance with the AAHA Seal of Acceptance?
Policies that have been awarded the AAHA Seal of Acceptance are re-evaluated annually. The Association has the right to revoke the Seal if any terms to the licensing agreement are violated.
Who should pet owners contact if they have questions, comments or complaints regarding their pet insurance?
AAHA recommends that pet owners contact their pet insurance company directly with any billing disputes. AAHA will only be available to investigate any violations of the terms and conditions of the Seal of Acceptance program.
When and where will a list of pet insurance policies that have been awarded with the AAHA Seal of Acceptance be available?
One of the reasons why AAHA created the seal of acceptance program is to encourage pet insurance companies to offer high deductible policies. These higher deductibles reduce premiums and make insurance a more viable option for many budgets. Many pet insurance companies have shown great interest in catastrophic coverage, however, no insurance policies have been awarded the seal at this time.
The AAHA Seal of Acceptance mandates that a company using the seal must be licensed to sell the high-deductible policies in all of the states or provinces in which it is licensed. For existing companies, the high-deductible policies must be approved for sale in at least 50 percent of the states in which the company is licensed, and the policies must have been filed in all other states where the company is licensed. Because of these stipulations, the Association anticipates the first seal being awarded during the fall of 2008. Policies that will earn the AAHA Seal of Acceptance will be listed online at www.healthypet.com.
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