Rising healthcare costs and high living costs are pushing America’s baby boom generation to consider relocating abroad for retirement. Mexico's close proximity to the US and affordability of living make it one of the top destinations for US retirees.
So, what healthcare choices do you have if you plan to move to Mexico in retirement?
With significant investment, Mexico has established itself as a popular medical tourism destination for Americans. Its highly-rated private healthcare facilities are equally capable of meeting the healthcare needs of Americans who call Mexico home.
Many people at retirement age have specific medical needs, often requiring routine medical check-ups, ongoing medications, and occasional follow-up visits. These additional healthcare needs must be considered in terms of additional cost and availability of appropriate care in your location.
Health Insurance in Mexico for Expats: Live in Mexico, Receive Healthcare in the US
Those retirees who live right across the border, such as in the Baja California area, often choose to enjoy the lower cost of living in Mexico while keeping their US health insurance and traveling to the US to receive their regular check-ups and scheduled surgeries.
Unfortunately, Medicare does not cover American citizens abroad, and as such, you should not count on it to cover your medical costs while you enjoy your retirement in sunny Mexico. This is where expat health insurance becomes essential, as it can provide the necessary coverage that US health insurance lacks.
With the price of visiting a general practitioner in Mexico at approximately $20 USD, and diagnostic tests costing about 30% less than in the US, many expat retirees choose to pay these expenses out of pocket.
However, costs can quickly add up for more complicated procedures, as certain healthcare facilities in areas with large international tourist or expat populations have been known to inflate medical charges.
2. Rely only on Mexican public healthcare
Mexico has a public and private healthcare system, with public health insurance options available. As an expat retiree, you will be classed as a legal resident, so you can access public healthcare schemes (INSABI or IMSS).
INSABI - Instituto de Salud para el Bienestar
The INSABI program is available to citizens and legal residents and is said to offer medical treatment free of charge in public healthcare facilities in Mexico.
However, patients have reported being asked to pay the fees despite being part of the program.
Therefore, it is not advisable for US retirees to rely on this program as it’s poorly structured and does not offer the comprehensive coverage and long-term medical benefits retirees need.
Instituto Mexicano del Seguro Social (IMSS)
IMSS is a health insurance program for citizens or residents who are formally employed in Mexico's public healthcare system.
Expat retirees often don’t fall under this category; however, they can sign up for around 300 - 500 USD per year.
Under the service, patients will get extensive healthcare in the public system. It is worth noting that the level of care will largely depend on the hospital and even the doctor you see, and the wait times are generally long.
As a general rule, healthcare in Mexican public facilities can rarely be accessed in English.
If you don’t speak Spanish, you may consider getting private coverage to supplement the local Mexican healthcare you are entitled to.
Public healthcare in Mexico does have a decent reputation in terms of actual medical care, but be aware that some hospitals charge in advance of treatment.
Expat retirees should plan ahead for emergency medical costs, even if they are significantly lower than in the US. While a local insurance program can cover immediate care, a global health insurance plan can offer more robust care, which, as a retiree, you need.
3. Private healthcare insurance in Mexico
Many private hospitals in Mexico have a reputation for excellent standards.
In fact, American patients often schedule surgeries or dental procedures at the top Mexican hospitals as the cost of healthcare tends to be lower than in the US.
As a general rule, your medical bill for private healthcare will be approximately 50% lower than in the US.
If you would rather not shoulder the high costs out of pocket, you should look into private insurance for retirees.
The cost of private health insurance in Mexico will depend not only on whether the plan is local or international but also on factors such as coverage limits, age, and any pre-existing conditions you might have at the time of application. Many expats opt for a private medical insurance plan that provides access to private doctors, clinics, and hospitals.
4. International health insurance: coverage in Mexico, the US, and anywhere else in the world
A high-quality international health insurance plan will cover you should you need medical treatment anywhere in the world – whether in Mexico, back in the US, or on a trip to Europe! This includes the benefits of private medical insurance, which allows access to private healthcare facilities and doctors both within Mexico and abroad.
This option gives you peace of mind and comprehensive medical coverage.
International health insurance offers bespoke coverage solutions, but they all have in common the following features:
- Access to private healthcare facilities worldwide (you can include the US)
- The ability to seek medical treatment from a hospital or doctor of your choice
- Routine doctor’s visits and testing
- Prescription benefits
- High coverage limits
- 24/7 access to emergency assistance medical hotlines with medical experts
- Deductible options
- Emergency medical evacuation
Additionally, Mexican health insurance can be cost-effective and provide essential coverage for expats living in Mexico.
Emergency medical evacuation
Emergency medical evacuation covers transportation costs to the nearest facility of excellence that can best treat your condition – whether it is a rare disease, a sudden heart issue, or emergency evacuation.
Sometimes, this nearest facility may be in the US or a larger Mexican city.
This element also covers the transportation of mortal remains.
Pre-existing conditions and retiree health insurance plans
These days, some common conditions might be included in your policy since more and more conditions are considered ‘manageable’ and, therefore, pose a lower risk to the insurance companies.
Be mindful that these conditions vary from insurer to insurer, and each new health insurance plan will be granted only after general underwriting and a medical check-up.
Age and retiree health insurance
Unfortunately, the older you are, the higher your premiums will be.
When you reach sixty years old, you will see a significant increase in premiums. Moreover, not every medical plan will accept seniors.
However, those insurers who will accept you may impose stricter pre-existing conditions and exclusions limiting your coverage.
Request a free quote from our partner, International Citizens Insurance, to compare the leading international health insurance plans.
