HMO For Fido?

If you think pet medicine is just rabies shots and ringworm treatments, think again.

Veterinarians today can do almost anything your doctor can do. But better pet care means higher prices. So on the CBS This Morning special series Pet Project, animal lover and Consumer Correspondent Herb Weisbaum offers some money-saving options.

But what if Fido or Felix or Babe needs more extensive treatment? The vet can do some amazing things these days, but it doesn't come cheaply.

Dr. Mark Davis is getting ready to perform delicate back surgery. His patient, an 8-year-old dachshund named Buddy, is on his way into the operating room. Buddy has blown a disc, and for weeks now, he has been in constant pain. If this procedure goes as planned, Buddy will have a better life for years to come.

Just like any hospital for humans, the Puget Sound Pet Pavilion has the latest high-tech equipment and a team of specialists available 24 hours day.

Says veterinarian Michael Jones, "We have ophthalmologists, dermatologists, dentists who do root canals. You name it. It's pretty much the same in veterinary medicine today as in human medicine."

These high-tech pet procedures are similar to people medicine in another respect: They're pricey. Knee surgery can run $2,000. Cancer treatment, if it involves surgery, chemo and radiation, can top $5,000. It's a price not everyone can afford to pay.

"It's very frustrating, and it happens way too often," says Dr. Dawn Thomas, a vet in southern California. Like her colleagues across the country, Dr. Thomas sees people forced to make life and death decisions for their pets, based solely on cost.

"And it's just devastating to not be able to give the treatment and to perhaps have to euthanize that animal or have that animal suffer," adds Dr. Thomas.

"I wouldn't live without it," says Scott. "She wouldn't be able to live without it."

But don't assume pet insurance covers everything. It doesn't. Jay Bloom learned that lesson the hard way, after his golden retriever Lucky had costly hip surgery. The insurance company denied Bloom's $3,000 claim.

Says Bloom, "There's thousands and thousands of reasons why a traditional insurance company doesn't have to pay out on a claim."

Bloom decided there was a better way. So he started a company called Pet Assure, a membership savings program that gives members 25 percent off their vet bills.

Explains Bloom, "We're like an HMO in that we have a network of providers our members can take advantage of. We're not like an HMO in that we don't have a primary care physician like a human HMO."

Dawnene McIntyre decided to join Pet Assure after her dachshund, Chilli, needed surgery to remove a tumor on his side. That operation was a medical success, but a major setback for the family's finances. And with two pets at home, Dawnene just wanted a little peace of mind.

Says McIntyre, "With him being a pure breed and with Tom, he's out in the yard, you just never know what's going to happen with them, and they're like our children. So we felt it would be to our advantage to have it just in case. You just never know."

So what does it cost to get coverage for your pet? Veterinary Pet Insurance charges around $100 to $280 a year, depending on the age of your pet and the type of coverage you want. Pet Assure runs $99 a year for the first pet and $79 a year for each additional one.

So which type of coverage is best: insurance or the pet HMO?

Each has its strong points. With insurance, you can use any doctor you want. But it doesn't cover hereditary diseases, elective surgery or routine procedures like teeth cleaning. With Pet Assure, there are no exclusions and no deductibles. It saves you on every visit to the vet, no matter what the reason.

Experts we spoke to say either one is better than having no coverage for that all-important member of your family.

How to reach them:

• Veterinary Pet Insurance: 1-800-USA-PETS
  Web site: www.petinsurance.com.
• Pet Assure: 888-789-PETS
  Web site: www.petassure.com.