Government and Insurers Collaborate for Accessible Coverage
The positive news is that the Mexican government and insurance companies are working together to create a more affordable health insurance option for seniors.
Secretary of Fiscal and Public Credit Initiates the Effort
The initiative was launched by Edgar Amador, the Secretary of Fiscal and Public Credit (SHCP), and was well-received by the insurance sector, led by Pedro Pacheco and Norma Alicia Rosas since yesterday.
Context of the 34th Insurance Convention
The agreement was announced during the 34th Insurance Convention. The aim is to design a basic insurance policy that seniors can afford, as they currently face high premiums due to their age.
Challenges and Proposed Solutions
The insurance sector for grown-up medical expenses has been under public discussion due to rising premium costs. However, the SHCP acknowledges that insurance products are based on a technical and financial foundation that makes paying claims viable. The sector has faced high costs in recent years.
Héctor Santana Suárez, the head of the Insurance, Pensions, and Occupational Safety and Health Unit at SHCP, emphasized the need to review terms and conditions for senior insurance policies while maintaining technical rationality in risk premiums and ensuring adequate protection for policyholders.
Growing Concern: Rising Premiums for Seniors
A growing trend has been observed where individuals aged 65 or older, who have retired, cannot continue paying their policies as premiums increase dramatically with age. Eventually, many stop paying and lose coverage, feeling frustrated for having paid substantial amounts during their productive years only to be forced to abandon policies due to insufficient income.
Key Proposals
Santana Suárez proposed that insurers offer more affordable premiums in better-defined products to meet the needs of Mexican citizens. He also highlighted the necessity for new microinsurance products tailored to unmet specific needs and accessible to more Mexicans.
He mentioned progress in projects like Minerva, which provides financial tools for women. Additionally, the insurance industry has made strides in microinsurance, with over 16 million policyholders in approximately eight years.
AMIS’s Requests
The Mexican Association of Insurers (AMIS) presented a comprehensive plan with five pillars to encourage financial protection for the population with a social and inclusive focus:
- Accessible quality healthcare with private insurance participation in health financing and as a complement to public health services.
- Protection for road traffic victims by extending the obligation of protection insurance through state and federal legal frameworks.
- Disaster resilience by promoting an Integrated Risk Management Study in all states.
- Economic protection for retirement by expanding the scope and modalities of annuities.
- Inclusive insurance by complementing social programs with microinsurance or parametric insurance.
This collaboration aims to find a balance between senior protection and insurance industry profitability for medical expense coverage.
