Lilly vs. Rattlesnake (The Insurance Update)

It took more than a month, but indeed Lilly’s pet insurance covers and assisted in paying a piece of her sizable veterinary bill stemming from her rattlesnake bite to the face Labor Day weekend (as chronicled here, here, and here). The mathematics behind the processed claim intrigue me.

For around $25 per month, I have a 70/30 policy, with limits around $3,000 per injury or illness/category. That means for covered items they pay 70% and I pay 30%. And, that very well may be the case for very large claims. But, in this particular case, the $100 deductible added to my 30%, actually lowers their payment on the claim down to 60% … like this:

Total bill = $951.13

70% of that = $665.79

Minus $100 deductible = $565.79 (which equals 59.4% of the claim)

Therefore, I had to pay $385.34 of the total bill. They sent me a check for the $565.79. It arrived in the nick of time so that I could pay off my credit card in full right away and avoid any interest charges. Whew!

So, it turned out OK … even if the true 60% of coverage didn’t match my expectation for 70% of help.

Could I have paid the bill outright, if I’d put away $25 every month for the 4 years since Lilly’s adoption? Yep. So, I’m still quite torn on the whole pet insurance thing. I was fully prepared to tell them to stuff it, if they did not pay on this claim. “If not now, when?” I practiced saying in my head.

BUT, they did come through, and I’m thankful for the financial help … especially now with the economy tanking.