Rising veterinary costs: which US states are most affected and how insurers are responding

GlobalPETS analyzes veterinary healthcare inflation in the US and highlights recent legal measures to support pet owners.

State-wide inflation

According to 2024 data from Miami-based pet insurance company Spot Pet, Maine experienced a 21% rise in veterinary costs between 2023 and 2024, followed by Georgia at 20% and New Mexico at 18%.

Other states grappling with vet care pricing inflation include Utah (17%), Connecticut and Massachusetts (16% each), Maryland, Montana and Pennsylvania (15% each) and Michigan (14%).

These rising costs reflect broader national trends. American personal finance website Forbes Advisor reports that veterinary visits now average $71.95 (€64.80) per pet in California, with similar expenses in states like New York ($66.60/€60) and Texas ($58.75/€52.90) compared to $57.65 (€51.90) in Michigan.

Surging insurance costs

In response to the surge in pet healthcare costs, insurance premium costs are also increasing for American pet parents.

For example, New York-based Lemonade Pet Insurance is set to raise the cost of its pet insurance by 14% starting 24 November 2024.

This price hike, approved by the California Department of Insurance (CDI), will increase annual insurance costs from $710 (€639.80) to $827 (€745.20) as inflation and higher veterinary care prices put pressure on insurers. The hike will affect all new policies and 57,471 existing policies.

Nationwide, one of the largest pet insurers also recently announced that it will not renew 100,000 policies, citing unsustainable costs.

California’s legislative actions

California’s Governor Gavin Newsom recently signed SB 1217, introduced by Senator Steven Glazer, to enhance transparency in policy terms and increase consumer protection for pet parents.

The bill requires insurers to clearly outline how factors like a pet’s age or location impact coverage costs and mandates that coverage begin 2 days after a complete application and payment are submitted.

Newsom also signed SB 1233, a bill sponsored by Senator Scott Wilk, which authorizes 2 California veterinary medical schools – UC Davis and Western University of Health Sciences – to develop a high-quality, high-volume spay and neuter (i.e., pet sterilization) certification program. This could significantly expand pet owners’ access to low and no-cost pet sterilization procedures.

This measure works alongside bill AB 1983, which encourages Californians to donate part of their tax returns to the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund, helping fund animal welfare initiatives.