Mexico's Health Premiums Jump 22%-26% Annually: AMASFAC

Health insurance premiums in Mexico have risen by 22% to 26% annually in recent years, according to Cristóbal Montiel Campos, President, Mexican Association of Insurance and Bonding Agents (AMASFAC).

“There is not a precise figure indicating a specific percentage increase this year, but averaging over time, we can see annual rises between 22% and 26%,” Montiel Campos stated during a press conference.

His remarks come after PRI Deputy Jericó Abramo Masso proposed a legislative initiative to cap private health insurance premium increases. The proposal suggests limiting annual increases to no more than the inflation rate plus five percentage points.

Montiel Campos pointed out that, unlike the United States, Mexico does not regulate insurance premium prices. He cited the example of California, where insurers withdrew from the fire insurance market after being unable to raise prices, resulting in significant uninsured losses from wildfires.

“We recently witnessed this in California. Insurers could not raise premiums, so they exited the market, leaving people without access to fire insurance, which led to substantial financial losses,” he explained.

AMASFAC is collaborating with insurance to address the rising costs of health insurance, Montiel Campos added.

Cristóbal Ponce Miranda, President, AMASFAC’s Life and Health Committee, expressed the association’s openness to legislative proposals but emphasized the importance of involving all stakeholders in the private health insurance sector.

“AMASFAC is actively monitoring and participating in discussions around this proposal. While we see areas of alignment, there are aspects that require more in-depth analysis,” Ponce Miranda said.

He highlighted that sustainable legislative solutions must tackle the root causes of rising insurance premiums, such as medical inflation, increasing hospital costs, and the rising prices of medical supplies and pharmaceuticals.

Ponce Miranda reiterated the need for addressing these fundamental issues to develop long-term solutions that ensure the affordability and accessibility of private health insurance in Mexico.