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A class action lawsuit has been filed against Healthy Paws Pet Insurance by a consumer claiming the company charges excessive monthly premiums.
Plaintiff Steven Benanav says that Healthy Paws is contractually obligated to increase their insurance premiums only to the extent of the costs associated with an increase in the amount spent on veterinary medicine.
Benanav reportedly purchased a Healthy Paws insurance policy for his dog Mali in March 2012. This insurance company has reportedly been underwritten by numerous companies such as Markel American Insurance Company, Ace American and Westchester Fire Insurance Company.
When the plaintiff first purchased the insurance for Mali, the monthly premiums were $33.85 per month, Benanav claims. However, as the dog aged, the monthly premiums reportedly increased.
The plaintiff states that in 2016, the monthly premiums increased from $39.03 to $44.80. Thereafter, the premiums increased to $55.61 in 2018, to $69.67 in 2019, and finally to $104.50 in 2020, according to the Healthy Paws class action lawsuit.
Benanav claims his pet insurance policy increased more than 300 percent over the course of seven years. The plaintiff alleges this amount is well above the overall average costs of veterinary medicine for that time period.
A Nationwide Purdue Veterinary Price Index from 2019 notes that from 2014 to 2018, the cost of veterinary medicine increased only 21 percent, which is less than the cost of the premium set by Healthy Paws.
Benanav says Mali is now 13-years-old and he is unable to switch insurance companies, because the dog has aged out of most policies.
The plaintiff claims that he expected his insurance premiums to rise according to inflation. He says if he knew that Healthy Paws would be taking Mali’s age and other factors into consideration to increase their rates, he would not have signed up for this particular insurance policy.
Benanav alleges that the age of his pet is not a factor related to veterinary medicine, and therefore Healthy Paws should not have used that information to increase insurance policies.
The Healthy Paws class action lawsuit argues that the insurance company has earned millions of dollars in extra profits by unrightfully increasing the costs of the monthly premiums.
“More and more, Americans regard their pets as members of their family and more and more, Americans are demanding similar services for their pets as they do for their family members—and that includes health insurance,” claims the Healthy Paws class action lawsuit.
The plaintiff cites statistics by the North American Pet Health Insurance Association, which states that more than 2 million pets were insured at the end of 2017.
In addition, the director of insurance for the Consumer Federation of America has recently stated that the purchase of pet insurance is “often motivated by a combination of love and fear,” which puts the purchaser in a vulnerable situation, according to the class action lawsuit.
Also, the plaintiff maintains that the cost-benefit analysis of whether an individual should choose pet insurance is based on the cost of monthly premiums.
“Many consumers, when presented with the possibility of securing the most advanced veterinary care for their pet in the event of a future illness for only $30 or $40 per month, believe that pet insurance is a good deal,” argues Benanav.
The Healthy Pets class action lawsuit states that pet insurance companies drastically increase the cost of monthly premiums when the consumers need the insurance the most: as their pets age.
The plaintiff argues that suddenly, monthly premiums for pet insurance may skyrocket to hundreds of dollars per month, which drastically affects the cost-benefit calculation.
“While some pet insurance policies may explicitly allow monthly premiums to increase based on a pet’s age—thus warning consumers from the outset of the potential for a spike down the road—Healthy Paws’ policies do not,” according to the Healthy Paws class action lawsuit.
There are two prospective Classes in the Healthy Paws class action lawsuit. First, a nationwide Class which consists of “All persons who, within the applicable statute of limitations, had their monthly premiums increase on a Healthy Paws pet insurance policy.” The second Class is a California subclass which includes “All persons in the state of California who, within the applicable statute of limitations, had their monthly premiums increase on a Healthy Paws pet insurance policy.”
Do you have insurance for your pet and have experienced premium costs increasing? Leave a message in the comments section below.
The plaintiff is represented by Samuel J. Strauss of Turke & Strauss.
The Healthy Paws Insurance Class Action Lawsuit is Steven Benanav v. Healthy Paws Pet Insurance, Case No. 2:20-cv-00421, in the U.S. District Court for the Western District of Washington.
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844 thoughts onHealthy Paws Class Action Says Pet Insurance Premiums Skyrocketed
I’d like to participate in this lawsuit. My Healthy Paws premium has gone up significantly, from $44 in to $152 in 4 years. Thank you!
My dogs insurance premiums have gone up each year and she is only 4. She has had claims on the insurance so now it’s too late for me to switch to another insurance because she would have a pre-existing condition. They told me that my claims do not have anything to do with the increase which I don’t believe.
I have 4 dogs insured with Healthy Paws. When I originally signed up it was around $30 each, now it’s nearly $200 after adjusting the reimbursement levels to the lowest possible. I specifically signed up with them because they said the price would not increase with age. I feel sick think of how much money I’ve given Healthy Paws. I barely get any money back from them now but my dogs are seniors now and no one else will insure them. This company is criminal in my opinion.
Healthy Paws went up to $150 monthly last year. They just sent me a notice it’s going up to $234 next year. They’ve been collecting my premiums for years. I’ll grant them my dog’s health needs are getting more expensive — but I thought that was what insurance was for, to average out costs over a large pool of pets over a number of years. It looks like the true purpose of pet health insurance is to guarantee that the insurance company makes a profit on each and every pet each and every year.
I have 8 dogs, this last increase almost had me cancel, but then what was the point of having it all this time, one dog alone is $110! She has had no major claims. I want to keep insurance but fear anymore increases. Do we have any updates or know the timeframe we are speaking of? Please add me.
I’ve also had a 220% increase now we’re at the point we can’t afford the insurance anymore and my dog is almost 11 years old. Now we can’t find insurance for him as he is too old!
I’ve had Healthy Paws since 2012. Please add me to the lawsuit!
My premium has jumped to $175. And if I move – 2 miles away in the same city – it will jump to $245
I had Healthy Paws insurance coverage for 4 years and each year it increased by a large amount finally in March 2021 it went up so much I changed to ASPCA pet insurance but now after just one year with them they are raising my premium by 36%. Maybe ASPCA insurance should have a lawsuit brought against them.
Here is the letter I wrote to the Wa. State Insurance Commissioner’s Office regarding Healthy Paws Pet Insurance Co.
PLEASE include me in the Class-action suite.
Puppy born 10/18/15. Healthy Paws Pet Policy began on 12/17/2015
$250 Deductible. 90% reimbursement – $36.51 mo.
Insurance premiums raised every year-
12/17/2016 $42.26mo.
I then received 2/3/17 email from Insurance Provider stating, “Our goal is to keep your anniversary premium increases to be less than 10%.”
12/17/2017 – Premium raised to $48.89 mo. (EPI Diagnosed)
12/17/2018 – Premium raised to $51.74mo.
10/23/19 – Premium raised to $54.74
10/23/20- Premium raised to $55.20
THEN In Nov. 2021 the rate jumped over 220% to $123.60!
HEALTHY PAWS Stated this rate was approved by the WA.OIC! “As a result, the revised rating plan for ACE American Insurance Company, the company providing your pet insurance policy, was recently approved by the WA OIC.”
WHY? There was NO exposure, and NO reason for this sky-high rate increase between 2021-22. Why would WA OIC approve this for Wa. State per owners?
I then applied the exact criteria for a Dog of exact age/breed with EPI for Portland Oregon with Healthy Paws Pet insurance and it was only $80.00!
And now, 12/17/22 – the rates went up again to $138.96.
At 2 yrs of age my Dog was diagnosed with EPI, (Exocrine Pancreatric Insufficiency) a life-threatening enzyme disorder which causes her to starve herself. Because of this, I cannot find another Pet Insurance Co. that would insure her at a reasonable rate due to her “pre-existing condition.” The current Insurance does not completely cover her Enzyme and Pro-biotic supplements.
If insurance-price-gouging and not being able to use “Pre-existing conditions” is OUTLAWED for humans, it should not be allowed for pets!
The 220% jump in the policy premium from $55.20 to $123.60 in 2021 needs to be investigated.
I emailed the WA. OIC last year about this, but received no reply. For some reason, I don’t think my letter went through.
It is my understanding that someone has started a class-action suit against Healthy Paws due to their enormous rate increases.
Thank you for helping me investigate this outrageous price hike.
Sincerely,
I’d like to join the class action lawsuit on Healthy Paws(HP). I enrolled my dog in 2015 at age 5, at $60 a month. In 2021 they spiked the rate to $100, & on 12/2022 to $122. I’ve never had a claim reimbursed apart from $125 once. My dog is healthy at almost 12. when I signed up, HP lead me to believe the premiums would not spike up and would not increase with age. I was duped by HP and need Justice to be done.