Private health insurance in Mexico is getting more expensive in 2026 due to a combination of high medical inflation and recent tax changes, which have increased premiums by between 20% to 40%.
Economist Alejandro Gómez, founder of the Group of Advisors in Economics and Public Administration, told the newspaper El Economista that these adjustments could deter people from contracting private insurance, reduce their coverage amounts to pay less, or, in the worst-case scenario, lead to cancellations.
In Mexico, approximately 14-15 million people (10% of the population) pay for major medical expense insurance (gastos medicos mayores). According to Gómez, about 20% — equating to about three million individuals — might consider canceling their policies this year.
Erick Ocampo, head of the Government and Public Sector Committee of the Mexican Association of Insurance and Bonding Agents (AMASFAC), explained to El Economista that this 20% at risk of dropping their policy has basic coverage, meaning that they have insured amounts below one million pesos (US $58,144), with deductibles of up to 100,000 pesos (US $100,000) and co-insurance policies of up to 20%.
“These are people who can no longer optimize their insurance; they can’t lower the insured amount to 500,000 pesos, [no insurer] is going to give them that, because they won’t get paid anything at all,” Ocampo said.
What caused the increase in premiums?
Record medical inflation and recent changes to the Value Added Tax (VAT) code for insurance companies have contributed to this year’s increase in prices.
According to the 2026 Medical Cost Trends Report by Aon, Mexico is projected to have the highest medical cost inflation globally in 2026, with an estimated average rate of 14.8%. This percentage not only surpasses last year’s increase (14.5%), but is also significantly higher than the country’s projected overall inflation rate of 3.2%.
In its report, Aon pointed out additional drivers of the price increase, including a growth in demand for private care and the limited coverage of certain treatments by major medical insurance companies.
Aon identified musculoskeletal and back pain disorders, gastrointestinal diseases and accidents as the main medical conditions that put high pressure on health plans.
Meanwhile, starting this year, insurance companies can no longer claim or deduct VAT on services and goods paid for when providing compensation for hospitalizations and other services. Furthermore, this measure is applied retroactively to the 2025 fiscal year. This means insurance companies will have to review their declarations and, if necessary, submit supplementary declarations to regularize any discrepancies.
Experts in the sector estimate that the VAT change alone is responsible for at least 10% to 20% of the price increase in premiums for medical expenses.
With reports from MGM Noticias and El Economista
