Vet industry to be investigated for pricing.
Discussion
https://www.bbc.co.uk/news/business-66733077
Seems there has been a higher increase in vet costs to the public, compared to other sectors .
Need the pet insurance sector to looked at to, I can create a far higher bill in an accident in one of my cars , yet my dogs cost twice as much to insure .
Seems there has been a higher increase in vet costs to the public, compared to other sectors .
Need the pet insurance sector to looked at to, I can create a far higher bill in an accident in one of my cars , yet my dogs cost twice as much to insure .
I read the small print of my dog insurance a few months back & it stated along the lines of "we'll accept up to 100% mark up on the cost of medication" or some such & then you go ah that'll be why my premiums are so high then!. I don't know any other sector of the insurance industry that would accept that sort of price gouging.
About time!
Our cat was in for a week at our vets, £2500 bill to treat jaundice. No operation required, just medication via IV and 7 nights all inclusive package.
Thankfully covered by insurance, but got a call a day later from the vets stating they forgot to charge for a pouch of wet food, asked me to cough up £2.42 for it. (Same brand at supermarket circa £0.35)
The insurers seem to accept silly pricing for treatments and at the end of the day its the owner that ends up paying one way or another.
They are a money making machine.
Our cat was in for a week at our vets, £2500 bill to treat jaundice. No operation required, just medication via IV and 7 nights all inclusive package.
Thankfully covered by insurance, but got a call a day later from the vets stating they forgot to charge for a pouch of wet food, asked me to cough up £2.42 for it. (Same brand at supermarket circa £0.35)
The insurers seem to accept silly pricing for treatments and at the end of the day its the owner that ends up paying one way or another.
They are a money making machine.
rigga said:
Need the pet insurance sector to looked at to, I can create a far higher bill in an accident in one of my cars , yet my dogs cost twice as much to insure .
Pet insurance is an absolute scam. We have an 18 month old Dobie, she recently chewed my glasses, my car keys and the rubber strap of my watch. Rang the pet insurance company who said we weren’t covered but if she had done it in a neighbours house or of the damaged goods belonged to a neighbour we would be covered.Luckily we had house insurance. Same story.
Edited to add, our Vet is absolutely wonderful, doesn’t overcharge and rushed back to the surgery last week when Ruby suffered a sever allergic reaction to a bee sting. Two injections, a course of tablets 50 euro.
Edited by P. ONeill on Thursday 7th September 13:25
I think this is a good idea. There is no rationale (beyond greed) for the collective price gouging that takes place, especially on medication.
The key factor at play here is that vets were once a highly fragmented sector, but the significant M&A activity that has taken place in recent times has placed significant control in the hands of a small number of big players. This is similar to what happened with dentistry and pharmacy before that.
The difference between veterinary and those other two is that they are paid for by the state (except that dentistry is trying to throw off having to do NHS work) and have price controls on activities and drug reimbursement. Vets are a licence to print money.
The key factor at play here is that vets were once a highly fragmented sector, but the significant M&A activity that has taken place in recent times has placed significant control in the hands of a small number of big players. This is similar to what happened with dentistry and pharmacy before that.
The difference between veterinary and those other two is that they are paid for by the state (except that dentistry is trying to throw off having to do NHS work) and have price controls on activities and drug reimbursement. Vets are a licence to print money.
I welcome the investigation, it's a difficult subject because when it comes down to it I'm sure many of us will pay whatever the cost is should anything happen to our pets. It is not an area where you tend to shop around to get the best price which leads to a lack of transparency. Coupled with pet insurance which seems to either not cover what you're claiming for or triple in price should you actually claim for anything it can be a costly rabbit hole to go down.
One of our dogs has a precription drug...we can get it a lot cheaper online than from the vets but we have to pay the Vet £28 for the prescription that only last for 6 months, after which he has to be examined again (£££ but nothing changed) and pay another £28 all over again..robbing barstewards!
rigga said:
https://www.bbc.co.uk/news/business-66733077
Seems there has been a higher increase in vet costs to the public, compared to other sectors .
Need the pet insurance sector to looked at to, I can create a far higher bill in an accident in one of my cars , yet my dogs cost twice as much to insure .
How often do you create a big bill compared to how often a pet may need a bill paying though? Size of bill is only half the story. Seems there has been a higher increase in vet costs to the public, compared to other sectors .
Need the pet insurance sector to looked at to, I can create a far higher bill in an accident in one of my cars , yet my dogs cost twice as much to insure .
Dingu said:
rigga said:
https://www.bbc.co.uk/news/business-66733077
Seems there has been a higher increase in vet costs to the public, compared to other sectors .
Need the pet insurance sector to looked at to, I can create a far higher bill in an accident in one of my cars , yet my dogs cost twice as much to insure .
How often do you create a big bill compared to how often a pet may need a bill paying though? Size of bill is only half the story. Seems there has been a higher increase in vet costs to the public, compared to other sectors .
Need the pet insurance sector to looked at to, I can create a far higher bill in an accident in one of my cars , yet my dogs cost twice as much to insure .
Dog insurance never seems to be that way, constantly rising, and quite often in huge jumps,and yes I get all their statistics gathered dictates premiums , dog age breed etc, but you cannot honestly look at the insurance field and say there's something not right.
Not to mention the vets and insurance seem to work hand in hand with each other, first question from a vet is always "you do have insurance don't you ?"
ChocolateFrog said:
Long overdue.
The rate that independent vets surgeries have closed was eye-opening.
The majority have been bought or forced out of business by the big vetanary groups and prices have gone ballstic. In this guise, industry just exploits our love for our pets. I have no issue with people/businesses making money but when it comes to monopolising services, its morally wrong. The rate that independent vets surgeries have closed was eye-opening.
rigga said:
Not to mention the vets and insurance seem to work hand in hand with each other, first question from a vet is always "you do have insurance don't you ?"
Always wondered what the importance was here. 'If you don't have insurance then its the big injection, but if you do, we can milk your provider'
rigga said:
Dingu said:
rigga said:
https://www.bbc.co.uk/news/business-66733077
Seems there has been a higher increase in vet costs to the public, compared to other sectors .
Need the pet insurance sector to looked at to, I can create a far higher bill in an accident in one of my cars , yet my dogs cost twice as much to insure .
How often do you create a big bill compared to how often a pet may need a bill paying though? Size of bill is only half the story. Seems there has been a higher increase in vet costs to the public, compared to other sectors .
Need the pet insurance sector to looked at to, I can create a far higher bill in an accident in one of my cars , yet my dogs cost twice as much to insure .
Dog insurance never seems to be that way, constantly rising, and quite often in huge jumps,and yes I get all their statistics gathered dictates premiums , dog age breed etc, but you cannot honestly look at the insurance field and say there's something not right.
Not to mention the vets and insurance seem to work hand in hand with each other, first question from a vet is always "you do have insurance don't you ?"
The potential bill is pretty irrelevant. It’s the actual rate and average value of claims which is far more important. Every car insurance policy sold could cost 1m but the premium doesn’t reflect that in general, unless claims history indicates there are factors which make it more likely, and even then only to a point. Insurers are working to target loss and operational ratios, that is claims costs and costs of operating as a proportion of premium. A general motor or HH insurer will often be working at around 90%, so a 10% margin for profit which will also allow any unexpectedly large claims or some unexpected inflation to be absorbed without financial difficulty.
It could be that Pet insurers are operating on a really strong combined ratio, a quick Google didn’t quickly surface any examples, in which case yes, there may be downward movement on prices that a regulator could act to try and achieve. If that isn’t the case however then the isn’t any movement from insurance directly.
If however the CMA review lowers vets bills in general then it follows that claims costs will reduce and therefore insurance premiums will - there will always be someone wanting more market share if they can profitably lower prices.
Dingu said:
If however the CMA review lowers vets bills in general then it follows that claims costs will reduce and therefore insurance premiums will - there will always be someone wanting more market share if they can profitably lower prices.
I admit my own perspective and views are my own, and may not be right, but face value impressions count for me.On the above bit, if the review finds costs have been inflated, and they do drop, then yes hopefully premiums will follow. That's a win.
Only fly in the ointment may be the lack of competition with vet practices, most have been taken over by bigger firms, Manor vets in my area, and there's only the one independent practice available. (Which I use)
rigga said:
Dingu said:
If however the CMA review lowers vets bills in general then it follows that claims costs will reduce and therefore insurance premiums will - there will always be someone wanting more market share if they can profitably lower prices.
I admit my own perspective and views are my own, and may not be right, but face value impressions count for me.On the above bit, if the review finds costs have been inflated, and they do drop, then yes hopefully premiums will follow. That's a win.
Only fly in the ointment may be the lack of competition with vet practices, most have been taken over by bigger firms, Manor vets in my area, and there's only the one independent practice available. (Which I use)
Richard-390a0 said:
I read the small print of my dog insurance a few months back & it stated along the lines of "we'll accept up to 100% mark up on the cost of medication" or some such & then you go ah that'll be why my premiums are so high then!. I don't know any other sector of the insurance industry that would accept that sort of price gouging.
100% markup is a lot less than a clothes retailer, for example.A builder would mark up materials when quoting for work.
Should they be investigated too?
Also, because human repairs and maintenance is free via the NHS the figures look high. If we had to pay for our healthcare vets bills would appear cheap!
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