The rising costs of pet care in the United States have become a significant concern for both veterinarians and pet owners. In 2023, Americans spent an estimated $147 billion on their pets, according to the American Pet Products Association. Many veterinary companies attribute the increased costs to a tight labor market and a growing demand for advanced treatments.
Shannon Hurley, a pet owner and “dog mom” of two, expressed the financial burden of pet ownership. “It’s very expensive to be a pet owner these days,” she said. Hurley shared that she has spent over $2,000 in veterinary bills for her dog, Lyra, who required surgery after breaking her incisors as a puppy.
Despite the rising costs, pet owners are willing to invest in their pets’ health. A recent survey by Lending Tree revealed that nearly 40% of pet owners have gone into debt due to pet-related expenses, according to Matt Schulz, the chief credit analyst.
The cost of veterinary services has risen sharply, particularly in urban areas, where prices increased by 7.6% from August 2023 to August 2024, as reported by the U.S. Bureau of Labor Statistics. Experts point to several factors for the price hikes, including shortages of veterinarians and supply chain issues. Schulz noted that inflation has affected all sectors, including pet care.
In response to these challenges, Congress is considering the PAWS Act, which would allow pet owners to use tax-advantaged health savings accounts (HSAs) and flexible spending accounts (FSAs) to cover veterinary expenses and pet insurance. Under the proposed legislation, pet owners could use up to $1,000 from these accounts for veterinary care or insurance.
Schulz emphasized the importance of this financial relief, stating, “A lot of people don’t have that $1,000 laying around.” He noted that many pet owners rely on credit cards for emergency expenses. The proposed law could significantly ease the financial burden on pet owners, especially as living costs continue to rise in 2024.
According to a 2023 Global Market research report, about 1 in 5 Americans have an HSA or FSA, and many pet owners, particularly millennials, view their pets as family members. Research from Statista shows that 82% of millennials see their pets as children, making the need for affordable veterinary care even more pressing.
As Congress deliberates on the PAWS Act, pet owners and veterinarians alike hope for a solution that will alleviate the financial strain of pet care while ensuring that pets receive the necessary medical attention.
