Weird at the blog Slacker Nation has some interesting thoughts on what pet insurance is doing to service costs in vet med. Here’s part of his post:

The third visit was where their motivations became clear. After filling out yet another “How’s your pet.” paper, getting the final shots, and listening to a spiel about a monthly application of a medicine to reduce parasites (to the tune of $50/month) I was hit up on pet insurance again which would help to cover that expenditure.

Weird is then quoted a price for a cat spay at $428–$528. He soon finds another clinic that charges $140. He concludes,

In my opinion, the reason this particular vet clinic is so expensive is that they use insurance to pay for their overpriced services. . . . Insurance allows them to jack up their prices which in turn causes insurance companies to raise their prices to consumers. It’s an inflationary feedback loop.

Catmanager does worry that this could happen sometime in the future, a fear I think might be realized more quickly than not if the recent talk of managed healthcare for pets comes to fruition. However, I disagree with Weird’s conclusion that insurance caused the one vet clinic to charge so much for its spay. I posted my response in the comments to his post (here’s a direct link). Let me know who you think is on the right track.