Mexico: Growth For Health Cover, HMOs

Health maintenance organizations are forecast to show rapid growth in Mexico's three largest cities, Mexico City, Monterrey and Guadalajara, following this year's reforms of the country's pensions and social security laws, says an article in Business Mexico.

While contributions to the social security institute, the IMSS, are now mandatory for employers, it is forecast that companies will soon be allowed to opt out; dissatisfaction with IMSS services means that already 90.7% of large and medium-sized firms offer private medical insurance as well, thus paying twice for their staff health care. Employers now pay a flat rate for all staff, but from 1998 contributions will vary based on income level.

Within three years, says Sergio Torres, a partner at insurer Brockman and Schuh, the IMSS will become more of a regulator than a provider, focusing mainly on ensuring that employers provide adequate cover for their staff, and only providing services for those who choose to remain within the IMSS or who have no other option.