Health Services Cut as Mexico Misses 2025 Budget Goals

Despite its aging population and rising chronic disease burdens, Mexico’s 2025 health budget falls short of meeting growing demand, raising concerns about access and structural inequities.

In 2025, the IMSS-Bienestar program projects a total of 50 million general consultations, 5 million specialty consultations, and 1 million surgeries under the IMSS-Bienestar model. This marks a 27% drop compared to the 90.1 million consultations registered in 2016 under Seguro Popular, declares México Evalúa.

Even when limiting the comparison to the 23 states integrated into IMSS-Bienestar, the system still falls short by nearly 18 million consultations. This decrease comes despite ongoing population growth and the increasing number of individuals without access to formal social security.

The underwhelming targets reflect broader constraints in the health system’s financing. Public health spending for 1Q25 totaled MX$151.7 billion (US$7.82 billion), a 14.3% decrease year over year and the lowest figure for a first quarter since 2010, according to the Ministry of Finance and Public Credit (SHCP). While public revenues increased by 11%, they fell short of budget expectations by MX$63.2 billion (US$3.26 billion), reports México Evalúa. 

This shortfall prompted cross-sectoral spending cuts, disproportionately affecting the health sector. Mexico Evalúa reports a 23% underspending in health, equivalent to MX$45.4 billion (US$2.34 billion), largely driven by price volatility in medical supplies and discretionary austerity.

Civil society organizations, including Fundar, raise concerns about the implications of these reductions. They criticize the lack of transparency in IMSS-Bienestar’s operational data — such as number of patients treated, regional performance, and hospital discharges — which hampers independent evaluation and public accountability. 

Mexico’s medical costs are outpacing general inflation and widening barriers to healthcare access, reports El Universal. The price of private medical consultations rose by 6.1% in April, the highest monthly increase since January 2004, while general inflation stood at 3.93%.

Luis Fernando Hernández, President, Soy Paciente, says that the dismantlement of the Seguro Popular program, persistent medicine shortages, and post-pandemic demand have increased dependence on private services. “Everything has substantially changed the way more people go to the doctor,” says Hernández.

Facing challenges, the government has introduced a new procurement policy that connects health purchases with domestic investment in the pharmaceutical industry. A presidential decree now requires companies seeking contracts to invest locally in manufacturing or infrastructure, aiming to channel over MX$300 billion (US$15.48 billion) in public spending into a national biopharma ecosystem. Authorities claim this initiative reverses years of industrial decline and supports technological sovereignty through innovation clusters, training centers, and bioincubators.

Despite this effort to stimulate local development, the broader budget outlook for health in 2025 remains limited. The total health sector budget is set at MX$918.4 billion (US$47.38 billion), representing an 11% decrease compared to 2024. Health spending as a share of GDP is projected at just 2.5% — well below the 6% minimum recommended by WHO. 

The disparity in spending becomes even more apparent when analyzing per capita allocations. Individuals affiliated with IMSS will receive an estimated MX$9,635 (US$497), a 12.4% increase over 2024, records CIEP. ISSSTE affiliates will see a rise to MX$11,531 (US$595) per person. In contrast, per capita spending for those without social security, covered by IMSS-Bienestar, will fall from MX$5,625 (US$290) to MX$4,225 (US$218) — a 24.9% decrease — meaning they will receive less than half the amount allocated to IMSS affiliates. While IMSS-Bienestar will receive an additional MX$31.2 billion (US$1.61 billion), this does not compensate for the MX$34.4 billion (US$1.77 billion) cut to the Ministry of Health or the MX$60.1 billion (US$3.10 billion) reduction in federal transfers to states and municipalities.

Programmatic cuts include a MX$20.5 billion (US$1.06 billion) reduction in general healthcare, a MX$10 billion (US$516 million) drop in vaccination programs, and an MX$8.9 billion (US$459 million) loss due to the transfer of HRAE hospitals to IMSS-Bienestar. Specialized hospitals and national institutes, including Cancerology and Nutrition Sciences, also experienced double-digit cuts. Mental health programs suffered a 13.1% reduction, affecting key institutions such as the National Psychiatric Institute and the Youth Integration Centers.

The budget adjustments reflect a policy orientation that prioritizes institutional realignment over expanded access. This is particularly troubling given Mexico’s aging population and the growing burden of chronic diseases such as diabetes, hypertension, and cancer. Civil society groups argue that the reduced investment in services for the uninsured population reinforces structural inequalities in access to care.

From a policy perspective, experts suggest revisiting fiscal mechanisms. According to CIEP, adjusting special taxes on tobacco and alcohol in line with WHO recommendations could yield up to MX$47.8 billion (US$2.47 billion) — enough to reverse the cut to the Ministry of Health. These resources could support preventive services and chronic disease management, both of which remain critically underfunded.

Health outcomes are not only shaped by institutional factors but also by everyday financial decisions. As Mercer Marsh's 2025 Health on Demand survey highlights, more than half of Mexican employees report declining physical, emotional, and cognitive well-being. Economic pressures, long wait times, and the fear of medical expenses often prevent individuals from seeking care. The problem is more acute among women: one in three doubts her ability to pay for medical services, compared to one in four men.

Employers could play a more proactive role. Only one in five companies offers cardiometabolic risk screenings, and just 13% provide cancer detection services, despite widespread employee interest in such benefits. The Better Work 2024 report found that 70% of Mexican employees feel their benefits packages are inadequate, with healthcare emerging as the most pressing unmet need. Mental health is a growing concern, with nearly half of employees experiencing constant stress, which often pushes them to look for new jobs. 

According to Betterfly, occupational diseases are having a growing impact on companies in Mexico due to rising treatment costs, long-term health effects, and reduced employee productivity, reports Betterfly. In 2024, over 1.5 million workers were unable to work due to workplace accidents, incurring a cost of almost MX$10.7 billion (US$629.4 million) in wage subsidies. 

While workplace health programs exist, many fail to address the real needs of diverse employee populations. Tailored benefit packages and preventive care could not only improve well-being but also strengthen employee retention and productivity. “Ultimately, it is not about imposing corporate wellness standards but designing inclusive solutions that reflect the unique needs of each workforce,” says Rubí Puebla, CEO, Body Systems, to MBN.