Obama's next target? Outrageous pet health costs.

Pet insurance is a nonstarter for many pet owners, simply because they take a pragmatic approach to their animals. If the cost of treatment got too high, they would choose to have the animal put to death.

But many who think they'd draw the line at a certain dollar amount find their convictions wavering when the time actually comes, said Veterinary Pet Insurance's chief executive, Dennis Drent. The kids are crying, the vet says a treatment would be successful, and some parents break down and spend the money.

In an interview with Veterinarian Today, Obama weighed in on Pet Health Insurance stating "Well, I think it should be a right for every American. In a country as wealthy as ours, for us to have people who are going bankrupt because they can’t pay their pet's medical bills--for my Bo to die of cancer at the age of 15 and have to spend the last months of hir life in the vet arguing with insurance companies because they’re saying that this may be a pre-existing condition and they don’t have to pay his treatment, there’s something fundamentally wrong about that."

But questions still remain as to how to pay for it. Is Pet Health Insurance a right? If so, and the government is responsible for that right, how does it carve out funds to assist?

Obama admits that the first steps should be taken by pet owners:

• Shop around. Policies and premiums can vary widely. Take note of not just the monthly or annual cost but the differences in deductibles, co-pays and caps, which may limit payouts by incident, annually or the animal's lifetime. Ask whether the insurer offers discounts for insuring multiple pets or whether your employer offers pet insurance as a voluntary benefit. The companies to check include PetCare Pet Insurance, 1-866-275-7387; Petshealth Care Plan, 1-800-807-6724; Veterinary Pet Insurance, 1-888-899-4874; and Embrace Pet Insurance, 1-800-511-9172.

• Check with your state. Like human health insurers, pet insurers should be registered with your state regulators.

• Scrutinize policies and understand their exclusions. The conditions most likely to afflict your pet are often the ones most likely to be excluded from a policy.

• Beef up your savings. A Consumer Reports analysis found that pet owners with insurance may actually spend more over time on their animals than those without.

But that isn't enough says the Administration. The American Pet Products Manufacturers Association says pet owners spent $10.1 billion on veterinary care and $9.8 billion on supplies and over-the-counter medicines last year. The American Veterinary Medical Association found that owners spent $24.5 billion on veterinary medicine in 2008. To help Americans curb the crippling cost of pet medical costs, the administration plans on pushing for a public option beginning 2011. Under Obama's public option plan:

• Will reimburses 80% of veterinary bills after you pay the public option deductible
• Pets can visit any licensed veterinarian, including specialists and emergency care clinics worldwide
• Choice of plan options for veterinary visits, surgery and more
• will cover pets as young as 7 weeks old — and no pet is too old for coverage

What remains to be seen is where the funds to cover the public option. According to Rep. Harry Reid (D-NV), he thinks funding could come from efficiency gains in DoD contract appropriations: "we have a lot of waste in DoD appropriations. Americans are very familiar with the $100 hammers and $1000 toilets. Getting a handle on DoD appropriations could easily recoup over $1 Billion a year. If we delay benefits for 4 years and add a VAT to the pet medical supplies industry, we could easily have the public option funded indefinitely."

Regardless of the funding source, Americans are in agreement that something needs to be done to curb the outrageous cost of medical for their pets. What remain to be seen is if bipartisan support can be raised in the House to pass such a bill.