MYTH: Pet insurance will create a managed-care nightmare.

TRUTH: That's a longshot and you have all the control.

Comparing pet insurance to human healthcare is like comparing apples to oranges. The pet insurance model isn't similar to managed care and it would take major changes in the profession to steer it that direction.

It's hard for the pet insurance companies to put pressure on veterinarians because the companies don't have a contractual relationship with them. "No one wants the veterinary profession to suffer the nightmares that human doctors are going through with insurance," says Dr. Felsted. "It's not likely to happen because the insurance products are different and the relationship is between the insurance company and the pet owner—instead of with the veterinarian. Plus, she says, only a small percentage of pets are covered or expected to be covered in the future.

So instead of comparing apples to oranges, let's look again at the car insurance model. You hope you don't get into a car accident, but if you do, the insurance company pays you an amount based on the value of your vehicle. The goal is to never use it.

Pet insurance follows the same model. Despite this, there is a fear in the veterinary community that pet insurance will turn into a nightmare like human health insurance. "For us to say that it will never go in that direction wouldn't be true," says Dr. Merle. "But it won't dominate because of the independent attitude that veterinarians have. Remember 15 years ago, when everyone was scared that corporate practices would take over? That hasn't happened."

Here's why a change in the current model isn't likely: Human healthcare is very specialized. To get the go-ahead to see a specialist, patients must go to a primary care doctor first. This minimizes costs because patients don't make appointments with specialists when all they really need is a primary care doctor.

In contrast, veterinary medicine predominantly consists of general practitioners—far more general practitioners than specialists. And even though you refer to specialists, it's not a requirement for a specialist to conduct the treatments like it is in human medicine. Also, there are no cost savings in the veterinary world if you minimize the number of people going to see specialists.

If managed care were to work in veterinary medicine, there would need to be a very large group of practitioners willing to participate. Practitioners would have to choose to be involved—it wouldn't be forced upon anyone. The industry has a great deal of control over not letting pet insurance turn into managed care—you hold the cards.

If you don't want to take the next steps and form networks, just say no. "We're already in a profession that doesn't charge what it's worth," Dr. Downing says. "So why on earth would we sign up for managed care? I hope that's a huge motivator for the profession not to go down that path."