Mexico is a popular country among US expats. According to the US State Department, an estimated 1.6 million US expats are in Mexico as of 2022. Moving to Mexico is an exciting step for many Americans.
However, relocating to Mexico also presents a unique set of challenges that require careful planning and consideration, such as the cost of health insurance.
The US and Mexico share a 2,000-mile border and are important trade partners to one another. These strong bilateral and geographical ties make Mexico a natural choice for US expats.
Some US companies may assign their employees to a Mexican subsidiary or branch. Mexico also ranks high on the list of expats from other parts of the world.
It is the highest-ranked destination for living and working abroad due to its cheap cost of living and ease of assimilation. Many expats find Mexico welcoming and have no trouble building their own community. It is also easy for US expats in Mexico to access essentials, but what about healthcare in Mexico for expats?
This comprehensive guide will cover the importance of healthcare insurance for US ex-pats in Mexico, what healthcare in Mexico for ex-pats is like, options for expat medical insurance in Mexico, and how to access other essential healthcare services in Mexico for ex-pats.
Navigating a foreign healthcare system is a daunting task. This guide is specifically tailored for US expats and provides insights into the factors to consider when choosing a plan. We also have a guide for UK expats.
Why is Health Insurance Important for US Expats in Mexico?
Health insurance is a fundamental necessity for anyone living abroad. US expats in Mexico are no exception.
While the cost of healthcare in Mexico is affordable compared to the US, it is still essential for US expats in Mexico to have health insurance. This ensures access to quality medical care and protects against unexpected medical expenses that could lead to financial strain during your time abroad.
On top of avoiding medical debt, healthcare coverage also matters because it connects US expats in Mexico to a regular source of care. This offers US expats in Mexico peace of mind, not needing to worry about access to healthcare. This also helps detect, prevent, and manage any pre-existing or unexpected illnesses and diseases during your time in Mexico.
More than 45% of Americans use prescription drugs to manage illnesses and prevent disease progression, which helps prevent medical complications. This is covered under expat healthcare insurance in Mexico.
Importance of Healthcare Insurance for Young US Expats
Young US expats in Mexico may think healthcare insurance isn’t a critical investment and therefore leave it off of their to-do list.
However, accidents can happen at any time, which is why it’s better to secure good expat healthcare insurance in Mexico before you move. An accident could cost USD $10,000, but you may only need to pay up to 20% of that with expat medical insurance in Mexico.
What is Healthcare in Mexico Like for US Expats?
Mexico's healthcare system is robust, with a public healthcare system and private healthcare facilities, comparable to other countries. However, the quality of care can vary significantly between rural and urban areas. Mexico City, Monterrey, and Guadalajara are the best cities to receive medical care for US expats in Mexico.
The healthcare system aims to provide universal health insurance coverage through IMSS-Bienestar. This was previously known as Instituto de Salud para el Bienestar (INSABI) for all Mexican residents – including US expats in Mexico.
COVID-19 and Healthcare in Mexico for US Expats
However, the healthcare system was also severely stressed during the COVID-19 pandemic. Mexico experienced the highest excess mortality and significant disruptions to other care in the OECD.
There were approximately 290,000 deaths during the pandemic. Furthermore, less than half of Mexicans were vaccinated in 2020 – the third lowest vaccination rate against COVID-19 in the OECD.
Moreover, while public health insurance is available, it may not always meet the standards that US expats in Mexico are accustomed to. There are also long wait times since the system is stretched for resources.
While many health professionals can speak English, making it easier for US expats in Mexico to communicate their needs, Mexico’s health coverage and financial protection for its population still lag behind the OECD average.
Only 48% of the Mexican population is satisfied with the availability of quality healthcare, compared to an average of 71% among OECD countries. Many locals complain that the health system in Mexico is under-resourced financially and staff-wise. Mexico continues to spend only about 5% of its GDP on healthcare.
Mexico’s Healthcare Institutions
The healthcare system is also fragmented. In addition to IMSS-Bienestar or INSABI, there are other national healthcare programs, such as Instituto Mexicano del Seguro Social (IMSS) and Instituto de Seguridad y Servicios Sociales de los Trabajadores del Estado (ISSSTE), that US expats in Mexico can access if they have Mexican residency or work for a Mexican employer.
When you work for a Mexican employer, you are automatically enrolled in IMSS. These healthcare institutions are currently undergoing rapid and extensive changes.
Since various social security institutions provide healthcare, this may disrupt consistent access to healthcare and add paperwork burden for US expats in Mexico. Mexico’s healthcare system also doesn’t cover dental care, eye care, elective surgeries, or infertility treatments.
Therefore, having health insurance can provide peace of mind. It also ensures access to the best medical care available, closer to what US expats in Mexico are used to, regardless of where you are in Mexico.
Access to Healthcare for US Expats in Mexico
Access and cost of health insurance in Mexico for expats depends on their visa, residency status, and how long they intend to stay in Mexico. There are three levels of healthcare that Mexico offers to US expats in Mexico.
- Base-Level Healthcare: IMSS-Bienestar (Previously INSABI)
This program is universal. Its primary aim is to provide care for those not covered under the IMSS or ISSSTE. US expats in Mexico can access this as long as they are Mexican residents.
There is no age limit, but your location of residence may affect your eligibility. This program is meant to help poorer communities who cannot afford IMSS, ISSSTE, or private insurance. Furthermore, you are assigned to a specific clinic and must have GP approval to see a specialist.
Unlike other social programs in Mexico, it costs nothing to enroll in IMSS-Bienestar. Consequently, not everything is covered. Prescribed medications, cancer, diabetes, long-term treatments, or significant surgeries are not fully covered. In the past, INSABI only covered up to 40-60% of these costs. The coverage is subject to change since the program is undergoing changes at the time of writing.
How Do US Expats in Mexico Enroll in IMSS-Bienestar?
To enroll, you must bring your Clave Única de Registro de Población (CURP), your personal ID code number, your passport, visa, and any other identification documents.
- Mid-Level Healthcare: IMSS and ISSSTE
IMSS for US Expats in Mexico
The IMSS has more comprehensive coverage. It covers all the basic medical needs of Mexican employees and US expats in Mexico. This includes surgery, medication, hospitalization, and compensation for work-related illness or accident for up to 52 weeks.
IMSS insurance also covers spouses, partners, children up to 16 years old (or 25 years old if the children are students), and parents (if parents live with the insured individual). Like the IMSS-Bienestar, the IMSS assigns a primary care physician. It’s challenging to change assignments even when needs are not met.
How Do US Expats in Mexico Enroll in IMSS?
US expats working in Mexico are enrolled automatically in IMSS and contribute payroll taxes when they work for a Mexican employer or subsidiary. Enrollment and contributions are mandatory, no matter if supplemental insurance is provided to you as a US expat in Mexico. Retired or self-employed foreign residents with legal residency in Mexico can enroll in IMSS voluntarily and pay a recurring fee if they wish.
To enroll, US expats in Mexico can apply in person at their local IMSS office or online. They must provide the required documentation. This includes their passport, residency visa, proof of accommodation (rental agreement), IMSS application form, birth certificate, marriage certificate (if applicable), two photographs, and a receipt of the first year’s premium. This is a long-term solution for US expats staying in Mexico for more than 6 months.
ISSSTE for US Expats in Mexico
The ISSSTE is similar to the IMSS. However, it is specifically tailored for government employees, which may not apply to most US expats in Mexico. It costs nothing to enroll since the state pays for it.
How Do US Expats in Mexico Enroll in ISSSTE?
US expats in Mexico can access and qualify for the ISSSTE if they have an FM2 or FM3 visa. This visa is an excellent pathway for long-term residency in Mexico. To qualify for these visas, US citizens must prove they have the funds to live in Mexico, invest, or bring professional skills to Mexico.
- Top-Level Healthcare: Private Health Insurance & Private Hospitals
While some US expats in Mexico may receive supplemental private health insurance when working for a US or Mexican company in addition to the options mentioned above, anyone can purchase it. This offers US expats in Mexico access to private clinics, doctors, and hospitals.
On top of that, these private health insurances or expat medical insurances cover services that are not covered within the IMSS and ISSSTE. This includes dental, vision, physiotherapy, private care, evacuation, therapy, treatment for pre-existing health conditions, and more.
Types of Expat Health Insurance in Mexico
1. International Health Insurance
International health insurance plans are specifically designed to provide coverage for individuals living outside their home country. These plans offer comprehensive coverage, including:
- emergency medical treatment
- hospitalization
- prescription drugs
- medical evacuation, and repatriation in the case of a serious medical emergency.
International health insurance plans are typically more expensive than local plans, but they offer the advantage of worldwide coverage. If you travel frequently (like a digital nomad) or split your time between Mexico and the US, you can rest assured knowing you're covered in both places.
Great options include:
- GeoBlue Xplorer (caters to US expats)
- SafetyWing (caters to digital nomads)
- IMG Global (only caters to medical needs)
- Allianz Global Assistance (caters to short-term stays)
- Cigna Healthcare (caters to big companies with employees worldwide)
2. Local Mexican Health Insurance
Another option for US expats in Mexico is to purchase a local health insurance plan. These plans are specifically designed for residents of Mexico and offer coverage within the country. While these plans may not provide coverage outside of Mexico, they are often more affordable than international health insurance plans.
Local Mexican health insurance plans can be a good option if you spend most of your time in Mexico and don't require coverage in the US or other countries. However, it's important to note that these plans may not offer the same coverage as international plans, particularly for more complex medical procedures or treatments. Speak to a local insurance broker for this option.
Factors to Consider for US Expats in Mexico When Choosing Health Insurance
Choosing the right health insurance plan is a crucial decision that requires careful consideration of several factors:
1. Coverage
The first and most crucial factor for US expats in Mexico to consider is the coverage offered by different insurance plans. Look for plans that provide comprehensive coverage for both routine medical care and emergencies. This includes hospitalization, doctor visits, prescription drugs, and preventive care. Also, consider whether the plan covers medical evacuation and repatriation, which can be absolutely necessary for a severe medical emergency.
If you have pre-existing medical conditions, checking whether the insurance plan covers them is crucial. Some plans may exclude coverage for pre-existing conditions or impose waiting periods before coverage begins. Therefore, it's important to read the fine print and understand the terms and conditions of the plan before making a decision.
2. Network of Providers
Another essential factor for US expats in Mexico to consider is the network of healthcare providers covered by the insurance plan. Access to a vast network of doctors, hospitals, and clinics can ensure you receive quality care when needed. It's also worth checking whether the plan covers treatment at public and private healthcare facilities, as this can significantly impact your quality of care.
3. Cost
The cost of expat medical insurance or health insurance in Mexico is another critical factor for US expats in Mexico to consider. This includes monthly premiums and deductibles, co-pays, and out-of-pocket maximums. It's crucial to balance the plan's cost with the coverage level it provides to ensure you're getting the best value for your money. The cost will depend on the company, age, medical history, and the amount of coverage you choose. The average cost of private healthcare insurance for US expats in Mexico is USD $5,900 per year. Most US expats in Mexico also want coverage in the US, which increases premiums.
4. Customer Service and Support
Lastly, consider the customer service and support provided by the insurance company. Look for a company with a good reputation for handling claims efficiently and providing assistance when needed. This can be particularly important in a foreign country where language barriers make communication more challenging.
How to Purchase Health Insurance in Mexico
There are several ways to purchase health insurance in Mexico:
1. Insurance Brokers
Insurance brokers specialize in helping US expats in Mexico find the right insurance plan for their needs. They can provide guidance and help you compare different options to find the best coverage at the most affordable price. However, it's vital to ensure the broker is licensed and reputable to avoid scams.
2. Online Insurance Marketplaces
Online insurance marketplaces like International Citizens Insurance allow US expats in Mexico to compare different insurance plans and purchase coverage online. These platforms often provide detailed information about each plan, making it easier to make an informed decision. However, it's essential to verify the credibility of the online platform and ensure that it's secure before providing any personal or financial information.
3. Insurance Companies
You can also directly contact insurance companies that offer health insurance for US expats in Mexico, such as the international healthcare insurance mentioned above. Research different companies, request quotes, and compare the coverage and costs before deciding. This can be a more time-consuming process, but it allows you to directly negotiate with the insurance company and potentially secure a better deal.
Get Insurance Right with An EOR For Your US Employees in Mexico
Healthcare coverage is vital for US expats living in Mexico. Whether you choose an international or a local Mexican health insurance plan, it is essential to carefully review the coverage, network of providers, cost, and customer service before deciding.
By taking the time to research and compare different options, you can find a health insurance plan that provides the coverage you need at an affordable price. Remember, the goal is to find the cheapest plan that offers the best value and meets the unique healthcare needs of employers and employees alike.
If you’re an employer hoping to find the right insurance coverage for your US employees in Mexico, you should speak to an Employer of Record (EOR) in Mexico like Borderless. As an employer, you may also wonder about Mexico’s Labor Laws, maternity leave policy, and required Christmas bonus. Our in-house experts know the ins and outs of these policies and provide the proper insurance coverage for your employees! Speak to us today.
Disclaimer: Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
