Tax Break for Veterinary Care

Pet parents may soon be able to use their health spending account (HSA) or flexible spending account (FSA) to pay their veterinary bills.

 

That’s because a recently proposed federal law would allow Americans with tax-advantaged savings accounts to use those plans to cover veterinary fees and pet insurance, according to a recent article.

 

The bipartisan bill was introduced by Deborah Ross, a Democrat in North Carolina, and Claudia Tenney, a Republican in New York. Under the proposed law, pet owners could apply up to $1,000 of their health accounts toward veterinary care or pet insurance. For Americans who have a service animal, like the disabled or veterans, there would be no cap on covered expenses.

 

The proposed law is also reportedly backed by the American Veterinary Medical Association as well as the head of MetLife’s pet insurance division.

 

Those in favor of this law say it will make veterinary care more affordable to pet owners, especially amid rising costs of practitioners and animal supplies.

 

The latest data from the U.S. Bureau of Labor Statistics shows in the last year the cost of veterinary services in urban areas has increased by 7.6%, with many in the industry blaming a tight labor market, problems with the supply chain following the pandemic, and increased demand for veterinary treatments.

 

According to the article, competition regulators are looking into whether the rising power of big corporations in the veterinary field is also driving up prices.

 

With about one in five Americans having an HSA or FSA, according to research published last year, that means if this law is approved, clinics may be seeing either a new form of payment, or pet owners will be reimbursed from their tax-free spending accounts.

 

What do you think about this proposal and the current state of the veterinary industry? Reach out to me any time to discuss this issue, or anything at all, including how to find the best doctors to join your team.