Medical inflation drives up insurance costs in Mexico

Medical inflation in Mexico is significantly outpacing general inflation, placing substantial pressure on health insurance policy costs. While general inflation remains between 3% and 4%, medical inflation is estimated to be between 12% and 14%, with some reports suggesting it can be four times higher than the general rate due to rising costs for medicines, medical supplies, hospital services, and new technologies.

In response, insurance companies such as MetLife, GNP, and AXA are implementing various containment strategies. These include strengthening primary care, utilizing artificial intelligence to detect fraud and deviations, and establishing preferential hospital networks. GNP has introduced programs to guide insured individuals through consultations to manage costs, while AXA is focusing on fraud prevention and medical assessment mechanisms.

In regions like Quintana Roo, the impact is visible through premium adjustments for major medical expenses, with increases ranging from 18% to 35%, and in some instances exceeding 40%. Despite these rising costs, the number of insured individuals has not seen a significant decline, a trend attributed to increased health awareness following the COVID-19 pandemic.