85% of Veterinary Professionals See Pet Owners Decline Recommended Care at $1,000 or Less

New Pawlicy Advisor and AAHA report finds cost pressure rising on every measure — and that practices which proactively recommend pet insurance have double the share of insured patients that can say "yes" to care

NEW YORK and DENVER, Sept. 1, 2026 /PRNewswire/ -- Cost is steering clinical decisions in nearly every U.S. veterinary practice, according to the third edition of the State of the Industry: The Impact of Pet Insurance on U.S. Veterinary Practices report, published today by Pawlicy Advisor and the American Animal Hospital Association (AAHA).

Surveying 451 veterinary professionals in May and June of 2026, the report finds that 86.1% adjust a recommended treatment plan every week due to client cost concerns — an average of five times per week, up from 4.7 last year. Difficult financial conversations are just as routine: 81.3% have at least one every week, averaging 4.4, up from 4.

New this year, the survey asked where that pressure begins. 85% of respondents see pet owners decline recommended care at $1,000 or less. A multi-step diagnostic, a foreign-body surgery, or a few days of hospitalization routinely exceeds this figure.

Respondents also estimate that 13% of euthanasia decisions, on average, are driven by a client's inability to afford treatment. Nearly one in four (22.9%) put that figure at 20% or higher in their own practice.

The veterinary industry believes in pet insurance, but pet owners are not hearing about it as often as they should

Agreement on the value of pet insurance has been consistently high in every edition of this survey since 2023. This year, 87.1% agree it helps clients say yes to more care, and 85.6% report observing at least one positive difference when treating insured patients, including better treatment compliance (73%), better outcomes (49.9%), and less economic euthanasia (35.2%).

While veterinary teams are largely aligned on the positive impact pet insurance can have, less than half of practices (48.2%) recommend it proactively; many wait for pet owners to ask.

There's a clear opportunity in shifting toward more proactive conversations, as practices that proactively recommend pet insurance report a median insured share of 7.5% of patients, about double the 3.5% at practices that only discuss it when asked (on par with NAPHIA's 2026 reported U.S. average of 4.27%).

When veterinary teams are talking about it, regulatory constraints remain top of mind: 79.3% are not comfortable recommending one specific insurer, given the liability of not holding an insurance license.

"Cost of care is a universal concern—one that should unite pet owners with the veterinary teams treating their pets, not divide them," shared Dr. Brady Beale, Chief Executive Officer, American Animal Hospital Association. "This research shows that when practices raise this subject early and often, and help pet owners access tools like pet insurance, they can focus on what matters: following through on the health plan their pet actually needs. We partner with Pawlicy Advisor because AAHA-accredited practices and their clients deserve to make personalized medical decisions based on their pet's health and evidence—not financial constraints."

"The finding I'd put in front of every practice owner is that those who take a proactive approach to the pet insurance conversation see twice as many insured clients. Practices that talk about pet insurance without waiting for a client to ask about it have significantly more insured patients, and more client flexibility to accept treatment as a result," said Woody Mawhinney, Chief Executive Officer, Pawlicy Advisor. "What's preventing veterinary teams from discussing insurance doesn't appear to be skepticism in the product, but what many believe is the time the conversation takes and the fear that the conversation will end in a request for a policy recommendation that veterinary professionals aren't licensed to answer. That's the problem Pawlicy Advisor exists to solve: most of the professionals we surveyed said an independent comparison marketplace with licensed experts is the likeliest path to the right coverage."

What practices say would help

Asked what resources would be ideal for client education, respondents ranked a side-by-side comparison first (63.3%). More than half (56.9%) said they were interested in free resources from an independent, AAHA-recommended pet insurance marketplace.

The report closes with six recommendations for practices, including anchoring the conversation to first-visit touchpoints, equipping front-desk staff alongside doctors, and outsourcing the comparison itself to licensed experts.

Methodology

The State of the Industry survey was conducted by Pawlicy Advisor in conjunction with AAHA between May and June 2026, gathering 451 responses from veterinarians and medical directors (40.6%), practice managers and administrators (39.5%), veterinary technicians (10.2%), client service representatives (3.2%), and non-veterinarian owners and other roles (6.5%). Two-thirds of respondents identifying an organization type work in independent hospitals.

Percentages are calculated on respondents answering each question. Year-over-year comparisons reference the 2025 edition (557 respondents, fielded February–March 2025). Statistical relationships were tested with rank-based methods at 95% confidence; correlational findings do not establish causation. This is the third edition of the survey, fielded in 2023, 2025, and 2026, with more than 1,500 veterinary professionals participating across the three.

The full report is available at pawlicy.com/pet-insurance-impact-on-veterinary-practices-report.

About Pawlicy Advisor

Pawlicy Advisor is the #1 pet insurance marketplace and comparison platform, committed to helping pet owners find the right pet insurance for their unique pet and helping veterinary teams deliver better care to more patients. Pawlicy Advisor is recommended by the American Animal Hospital Association and offers a free solution that streamlines client education and discovery of pet insurance products with objective, data-driven recommendations based on each pet's unique information — helping over 1 million pet owners find the right pet insurance for their coverage needs. Pawlicy Advisor is a licensed insurance marketplace and brokerage. Learn more at pawlicy.com.

About the American Animal Hospital Association

Since 1933, the American Animal Hospital Association has been dedicated to improving the lives of pets, the people who care for them, and the veterinary professionals who serve them. AAHA is the only organization that accredits veterinary hospitals in North America, setting hundreds of rigorous standards for high-quality medicine and compassionate care. Because accreditation in veterinary medicine is voluntary, the AAHA-accredited logo is the most reliable indicator that a hospital has undergone independent evaluation. Today, AAHA is building on that foundation to become the most trusted and connected platform in animal health, bringing together all parts of the pet care ecosystem to strengthen the systems of excellent care. Look for the AAHA-accredited logo at your local hospital or find an accredited hospital near you today at aaha.org.

SOURCE Pawlicy Advisor