Congress considers bill helping with costs of veterinary care, pet insurance

New bipartisan legislation introduced in Congress would help Americans manage the costs of veterinary care and pet insurance by including expenses for pets and service animals under tax-advantaged health savings accounts (HSA) and flexible spending accounts (FSA).

The People and Animals Well-being (PAW) Act (H.R. 9508) amends Internal Revenue Service (IRS) regulations to allow pet owners to use their HSA or FSA accounts to cover up to $1,000 for veterinary care or a pet health insurance plan. These funds would be available for those with service animals as well within current HSA and FSA contribution limits.

The PAW Act aims to assist veterans with post-traumatic stress disorder (PTSD) and individuals with disabilities by ensuring the IRS relies on an up-to-date federal definition of "service animal." This includes animals trained to assist with both physical and mental disabilities.

Proposed legislation would allow pet owners to use health savings and flexible spending accounts for the costs of veterinary care and pet insurance.

With an annual inflation at or above 4% since 2021, surveys show pets owners are sensitive to the costs of veterinary care. As a consequence, they may put off a trip to the veterinary clinic to keep expenses down.

On September 9, Democratic Rep. Claudia Tenney, who represents New York's 24th Congressional District, and Republican Rep. Deborah Ross, who represents North Carolina's Second Congressional District, introduced the PAW Act, which has been referred to the House Ways and Means Committee.

"Our pets and service animals are cherished members of our families, and it's essential that owners have the ability to pay for quality care," Rep. Tenney said in a press release. "This legislation will help veterans, and all pet owners afford veterinary care for their beloved pets and service animals."

"As a dog owner, I'm proud to introduce the bipartisan PAW Act that would include veterinary care and pet insurance as eligible expenses under HSAs and FSAs to help ensure every animal lover can afford care for their pet. I'm grateful for the partnership of Congresswoman Tenney and will keep working to see this bill signed into law," Rep. Ross said in a statement.

The AVMA has endorsed the bill, along with the Human Animal Bond Research Institute and insurer MetLife. "Ensuring veterinary care and pet health insurance are eligible expenses under health savings and flexible spending accounts means more affordable care for pets, greater access to care for service animals, and an enhanced ability to detect and prevent zoonotic diseases," AVMA President Sandra Faeh said.

Brian Jorgensen, head of Pet Insurance for MetLife, said the company "strongly" supports the PAW Act as it helps pet owners address unexpected veterinary expenses resulting from a pet's illness or accident.

"This bill is a critical step towards promoting the health and well-being of pets by helping pet parents access the care their pets need while protecting their financial wellness. We are proud to support a bill that aligns with MetLife's purpose of helping people care for their loved ones, both human and animal," Jorgensen said.

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