The following post explains pretty much what I was told when I had all of our cats microchipped - hope this is accurate. That first year of coverage had all sorts of bells and whistles and the annual fee extends that extra part but the animal is STILL microchipped and in the computer. I went ahead and did the optional stuff for the first year - uploaded photos with info about markings, height, weight etc , got them each little photo id tags for my keychain... but even that part the vet office had told me I could do or not do but was provided for that first year. Maybe others will be able to clarify with authority.

from http://www.thecatsite.com/forums/sho...d.php?t=177881
Just thought I'd make a new post about this since there has been some confusion.

When you get a Home Again microchip, you pay an initial fee. That puts your pet in their database, and gives you full coverage for 1 year. This full coverage includes 24/7 medical assistance to a hotline, they assist you if your pet goes missing (contact vets and shelters in your area), and I think there was something else.

After a year you have the option to renew that full coverage, or just stick with the basic free service which is keeping your pet in their database.

If I log in to my HomeAgain account, I have my 3 kitties as well as a bunch of kitties I fostered and adopted out recently whose owners haven't changed their information to their name. The recently chipped kitties have "Full" service next to their names, and the date the full service expires. My kitties have "Limited" service, and it gives me the option to upgrade to full service. I don't see the point, so I'm sticking with the basic service.

So please don't let the idea of an annual fee discourage you from microchipping your pet - you have the choice of whether to pay for their full coverage.

Also found this at the Homeagain site:
I have already enrolled with HomeAgain some time ago. Am I entitled to the new services?

As an existing HomeAgain client you are entitled to our basic recovery service for life. None of the new services (proactive recovery, emergency service, online health information) will be available to you unless you enroll with the new HomeAgain. There is an annual enrollment fee of $14.99.