Rising Health Costs Strain Mexican Households

Mexico’s health costs have risen sharply since 2018, increasing financial pressure on Mexican households, especially those with lower incomes and without social security coverage.

An analysis by Mexico Evalúa, based on INEGI’s data, found that out-of-pocket health spending increased 41.4% from 2018 to 2024, with average quarterly expenses per household rising from MX$1,135 (US$60.79) to MX$1,605 (US$85.99). Catastrophic health expenditures — those exceeding 30% of a household’s capacity to pay — surged 64.5% during the same period, affecting more than 1 million families. The financial burden is disproportionately higher for low-income households, who allocate a larger share of their income to medical costs compared to wealthier families.

Medical inflation has outpaced general inflation, with private consultation prices rising 6.1% in April 2025, the highest monthly increase since 2004, reports MBN. Medication costs, particularly for anti-inflammatory and diabetes treatments, also climbed. Experts attribute these trends to systemic issues in the public healthcare system, including the dismantling of Seguro Popular, medicine shortages, and increased post-pandemic demand.

As reported by MBN, public health funding has decreased, with 1Q25 spending dropping 14.3% year-over-year to MX$151.7 billion (US$3.26 billion). Budget shortfalls prompted cuts disproportionately impacting vaccination programs, specialized hospitals, and other key services. The IMSS-Bienestar system projects fewer consultations in 2025 compared to previous years, despite population growth.

Transparency in procurement has improved through a new government platform tracking medicine orders and supplies, though experts emphasize the need for accessible information for all socioeconomic groups. As of March 2025, 61% of a 381 million unit order of medications and medical supplies had been delivered, helping to ease shortages.

Mexico’s health budget for 2025 totals MX$918.4 billion, (US$47.38 billion), an 11% decrease from 2024, allocating just 2.5% of GDP to health — below the World Health Organization’s (WHO) recommended minimum. Funding disparities remain, with IMSS affiliates receiving more than twice the per capita spending compared to those under IMSS-Bienestar.

The government has linked procurement contracts to local investment requirements aimed at developing a national biopharma ecosystem, targeting over MX$300 billion (US$15 billion) in sector investments. Critics warn these efforts may not fully offset budget cuts and rising inequalities.

In a recent announcement, Mexico’s Ministry of Health confirmed a new government commitment of over MX$12 billion (US$643.4 million) in pharmaceutical investments to expand clinical research, manufacturing, and technological capacity. Minister of Health David Kershenobich says that these investments will “strengthen the country’s health sovereignty, boost local production of essential medicines, modernize infrastructure, and promote exports.”

The investments include projects by Boehringer Ingelheim, Bayer, and AstraZeneca, which plan to expand manufacturing and research operations, generating thousands of direct and indirect jobs.