Lady has had dry eye/KCS for several years. What did your vet prescribe to stimulate tear production? Cyclosporin didnt work for Lady so she gets Tacrolimus. It is compounded. A $30 bottle lasts three months. You also need to use artificial tears. Genteal Severe dry eye gel (not drops) is the best. I spend about $30 a month on artificial tears. Normally eye exams with tests run about $150. Lady sees the ophthalmologist twice a year now.
KCS (Dry Eye)
Just to warn you, dogs with dry eye are prone to eye ulcers and tear stimulants suppress the immune system so eye infections are common. Lady had an eye infection this summer that cost me $1000 to treat. Half of that was on eye drops. She had one little bottle that cost $90 and had to be refilled every week.
You have to be diligent about Reese's drops and artificial tears and make sure you get her eyes checked regularly to preserve her vision.
All dogs should get yearly bloodwork and physicals, but at seven, Reese is now officially a senior so it is even more important. A thyroid panel is routine for seniors. To be honest, you bill sounds about right. A complete blood chemistry with a thyroid panel, heartworm, plus an eye exam and medication would be about $400 here in North Carolina.
Please, please get the weight off her. If she is four pounds overweight, that is obese on a toy breed dog. My Lady became diabetic at age seven due to her weight. If you think dry eye is expensive, you don't even want to know what it costs to care for a diabetic dog. I'm not talking about treating the diabetes which is expensive enough, but diabetics have weak immune systems and get chronic infections, especially uti's.