Mexico health insurance: buyers trim coverage to keep it, says Fitch

November 6, 2026. Health insurance premiums in Mexico grew 9.3% year over year through the second quarter of 2026, the fastest increase among the market's main lines, driven by higher costs and rate adjustments, according to the Fitch Ratings analysis published by Expansión on November 5. The rating agency also spotted a change in behavior: to keep their policies, many policyholders are accepting more limited coverage or raising their deductible and coinsurance.

According to Fitch, these conditions are changing how policyholders behave. If you live in Mexico, whether you are Mexican or a foreigner, it pays to run those numbers calmly before you sign your renewal.

Why health insurance keeps getting more expensive

Fitch points to two causes. The first is a tax change: since 2026, insurers can no longer credit as their own the VAT they pay to third parties such as hospitals, doctors or auto repair shops, something they could do until 2025, according to the Diario de Tabasco report on the same analysis. The second is medical inflation that remains high.

The industry's own data point the same way. The Mexican Association of Insurance Companies (AMIS) reported in October that in the first quarter of 2026 insurers paid an average of 100,852 pesos per medical claim (about 5,413 dollars at the Bank of Mexico FIX exchange rate of November 6, 18.6297), 17.8% more than a year earlier. And the medical trend rate that the consulting firm Aon projects for Mexico in 2027, which measures how much the cost of care rises in employer plans, is 13.7%, according to Expansión.

An industry that keeps paying claims

Despite the pressure, Fitch describes the industry's performance as favorable and resilient. The insurance market stayed technically profitable, with a combined ratio of 99.2%, and posted net income of 43,334 million pesos year to date through the second quarter, 1.4% less than a year earlier. The rating agency expects the effect of the VAT change to normalize gradually.

The accident and health loss ratio, which measures how much of the premiums goes to claims, rose to 74.2%, 3.7 points higher than in the same period of 2025. Fitch warns that smaller insurers, or those concentrated in auto or in accident and health, could face pressure on their results and capital, which is useful to know when you choose a company.

How to cut back without losing your protection

According to Condusef, Mexico's financial consumer protection agency, as cited by Uno TV, the deductible is what you pay before the insurer steps in, and coinsurance is the percentage of the expense that stays with you. Raising either one means paying more out of pocket every time you use your insurance. Before you decide, check these points:

• Don't cancel without thinking about pre-existing conditions. A condition that began before you bought the policy may be excluded, depending on the product and the insurer, and waiting periods run from the start of the policy, according to Condusef, as cited by Expansión. So if you cancel and buy another policy later, anything you are diagnosed with in between could be excluded.
• Protect your sum insured. A higher deductible makes each claim cost you more; a low sum insured can leave you uncovered in a serious case. In 2025 the industry paid an average of 674,974 pesos a year for each stomach cancer case, as we reported in our story on the AMIS data.
• Ask about the coinsurance cap. If you raise the percentage, confirm whether your policy sets a maximum you pay for it.
• If you switch insurers, ask about seniority. AMIS, as cited by Publimetro, says that recognition of seniority can vary between companies: ask how and when to request it and how much time they will recognize.

If you are a foreigner living in Mexico

For those who live here, a policy bought in Mexico is usually the most practical option at the country's hospitals. Medicare almost never pays outside the United States, as we explained in our story on Medicare and Mexico. Cancelling to save money can end up costing you a lot if you later have to buy coverage again at an older age or with a diagnosis in between, because each insurer applies its own age and acceptance requirements.

If you spend part of the year abroad, an international major medical plan can also cover you outside Mexico, depending on the coverage zone you choose.

Compare before you renew with 1SEGUROS

At 1SEGUROS, in Mérida since 2001, we review your current major medical insurance policy and get quotes from several insurers for different combinations of sum insured, deductible and coinsurance, so you can see how much the premium changes and what you give up before you sign. We serve you in Spanish or English. Message us on WhatsApp at +52 999 316 7145.