Healthy Paws Class Action Says Pet Insurance Premiums Skyrocketed

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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