Medicare in Mexico

Although estimates of the number of American citizens residing in Mexico are varied, most analysts conclude that there are about 800,000 to 1.2 million living in Mexico.  Many of these citizens are retirees seeking to take advantage of Mexico’s much lower cost of living.  One of the biggest impediments to retiring in Mexico, however, is the inability of retirees to access Medicare benefits while in Mexico.  This issue presents numerous problems for these retirees.  Most pertinent among them is the need for these retirees to return to the United States for much of their medical care, with many retirees traveling an average of five times per year and incurring large travel expenses along the way.  At its core, some analysts suggest it is an issue of fairness.  Retirees living outside the United States are forced to forego benefits they earned during their working career.  Mexican citizens who have worked in the United States and earned these benefits are likewise hesitant to return to Mexico, knowing they will lose their access to coverage.
    This topic has not gone unnoticed in Mexico or the United States.  In Mexico, public and private sector officials recognize the potential profits that the extension of benefits to U.S. retirees could bring to the Mexican economy.  With the retiree population in Mexico expected to swell to 5 million by 2025, most of who will be U.S. citizens, the Mexican health care sector could contribute upwards of $6 billion to the GDP if the provision of these services was reimbursed by Medicare.  At the same time, with medical costs three to five times lower in Mexico, the country could position itself as a medical tourism destination, providing low-cost quality care to all U.S. citizens.  In the United States, public officials recognize that extending these benefits may play a small role in reigning in healthcare costs, allowing retirees to seek procedures at a much lower cost outside the United States.
    While the situation is not likely to change in the near future, the reforms being advocated are not without precedent. In the European Union near total portability of health coverage exists, with countries of origin covering comparable costs for services provided in other EU nations. Individuals are expected to cover additional expenses.  Thus, policymakers on both sides of the border may look to this example when considering how to extend Medicare benefits to retirees living in Mexico.