Healthcare Spending in Mexico Rises 41%, Pressuring Most Vulnerable Households

By Eugenio Herrera Nuño. Healthcare expenditure in Mexico has become an escalating burden on household finances. Between 2018 and 2024, Mexican households increased their spending in this category by 41.4% in real terms, rising from an average of 1,135 to 1,605 pesos quarterly, according to data from the National Survey on Health and Aging in Mexico (ENASEM). This increase, equivalent to almost 470 additional pesos per quarter, not only reflects a higher cost of medical care but also a greater reliance on out-of-pocket expenses, especially among lower-income sectors.

Lower-Income Households Bear the Heaviest Burden

The impact of this increase is not uniform. Households in the first socioeconomic decile—those with the fewest resources—saw their income allocation to healthcare rise from 2.9% in 2018 to 3.9% in 2024. Furthermore, while healthcare spending grew by 83% in the poorest households, the increase was only 34% for higher-income households. This disparity highlights a disproportionate financial pressure, exacerbating existing inequalities in access to medical services.

Social Security: A Key Determinant in Spending

Affiliation with healthcare systems makes a significant difference. Households without access to social security, particularly those headed by independent workers, allocate up to 2.7% of their income to healthcare. In contrast, those with institutional coverage exhibit lower levels of expenditure:

• PEMEX or ISSFAM Affiliates: 1.0%
• IMSS: 1.4%
• ISSSTE: 2.0%
• Private Insurance: 1.6% This confirms that medical coverage reduces the impact of out-of-pocket expenses, although it does not eliminate it entirely.

Older Adults: Greater Demand, Increased Vulnerability

Population aging exacerbates the situation. Households headed by older adults recorded a 46% increase in their healthcare spending, rising from 1,567 to 2,285 pesos quarterly. With 32 million people aged 50 or older in the country, the trend indicates sustained pressure on households, in a context where medical needs are more frequent and costly.

Catastrophic Expenses and Rising Impoverishment

The document also warns about the growth of so-called catastrophic expenses—those exceeding 30% of a household’s payment capacity. In 2024:

• 1.11 million households (2.9%) faced this type of expense.
• This represents a 64.5% increase compared to 2018. This phenomenon translates into direct consequences: 287.4 thousand households (0.7% of the total) fell into poverty due to healthcare expenses, a 60% increase compared to 2018. In practical terms, 2.6 out of every 100 households fell into poverty after covering their medical expenses, compared to 1.5 in 2018.

Regional Disparities and National Trend

The impact of healthcare spending also exhibits territorial differences. States such as Veracruz, Chiapas, Oaxaca, Estado de México, Puebla, and Guerrero show higher levels of impoverishment associated with medical care. Nationally, 29 of the 32 federal entities recorded an increase in out-of-pocket expenses, with the exception of Aguascalientes, Campeche, and Nuevo León. In the Bajío and Western regions, entities like Jalisco, Guanajuato, and San Luis Potosí exhibit higher levels of catastrophic spending compared to states like Zacatecas and Aguascalientes.

Mexico Lags Behind International Standards

The context worsens when comparing public healthcare expenditure. Mexico allocates approximately 370 dollars per capita, a considerably lower figure compared to OECD countries like the United States (7,269 dollars) or Canada (4,477 dollars), according to data cited in the document. This lag partly explains why households end up absorbing a growing proportion of healthcare costs.

A System Transferring Costs to Households

The behavior of healthcare expenditure in Mexico reveals a structural trend: the system is increasingly shifting the financial burden onto families. In a country where the number of older adults will grow rapidly and where income disparities persist, the rise in out-of-pocket expenses not only represents an economic challenge but also a risk to social stability and equity in healthcare access.

This entry first appeared on Líder Empresarial.