Seguro Popular To Include Hemophilia Treatment For Children

BMI View: It is encouraging for multinational pharmaceutical companies that Mexico plans to include more high-cost treatments within Seguro Popular. However, low healthcare spending in Mexico is a fundamental factor that hinders the access of innovative medicines in the country. Nevertheless, the regular access to healthcare through social protection schemes can reduce out-of-pocket payments on basic healthcare services and free up resources for more advanced medical treatments.

Mexico's national health insurance programme, Seguro Popular, has included the treatment of haemophilia for children, which can cost up to MXN60,000 (USD4,620) per unit. We note that the programme includes all treatments for children, and it is reportedly to invest around MXN7mn (USD54,000) per year for children's healthcare. However, the local health authority estimated that the programme needs extra investment of MXN4mn (USD310,000) per year in order to include high-cost treatment for haemophilia such as anti-haemophilic factor.

Launched in 2003, Seguro Popular was designed to tackle widespread inefficiencies and inconsistencies in the country's healthcare system, and aims to provide health insurance coverage for those in Mexico that were not already covered by another programme. Over the past decade, Seguro Popular has improved access to healthcare services and reduced the prevalence of catastrophic healthcare costs, especially for those on low incomes The scheme guarantees access to over 250 medical interventions, including all services provided in ambulatory clinics and general hospitals. It also covers a package of 18 expensive interventions, including all treatment for children, HIV/AIDS, and cervical and breast cancer. Seguro Popular's current budget for each patient is only around USD200 per year.

Personal Healthcare Expenditure Drops
Mexican Household Expenditure Between 2008 And 2010 (In MXN)

BMI View: It is encouraging for multinational pharmaceutical companies that Mexico plans to include more high-cost treatments within Seguro Popular. However, low healthcare spending in Mexico is a fundamental factor that hinders the access of innovative medicines in the country. Nevertheless, the regular access to healthcare through social protection schemes can reduce out-of-pocket payments on basic healthcare services and free up resources for more advanced medical treatments.

Mexico's national health insurance programme, Seguro Popular, has included the treatment of haemophilia for children, which can cost up to MXN60,000 (USD4,620) per unit. We note that the programme includes all treatments for children, and it is reportedly to invest around MXN7mn (USD54,000) per year for children's healthcare. However, the local health authority estimated that the programme needs extra investment of MXN4mn (USD310,000) per year in order to include high-cost treatment for haemophilia such as anti-haemophilic factor.

Launched in 2003, Seguro Popular was designed to tackle widespread inefficiencies and inconsistencies in the country's healthcare system, and aims to provide health insurance coverage for those in Mexico that were not already covered by another programme. Over the past decade, Seguro Popular has improved access to healthcare services and reduced the prevalence of catastrophic healthcare costs, especially for those on low incomes The scheme guarantees access to over 250 medical interventions, including all services provided in ambulatory clinics and general hospitals. It also covers a package of 18 expensive interventions, including all treatment for children, HIV/AIDS, and cervical and breast cancer. Seguro Popular's current budget for each patient is only around USD200 per year.

Personal Healthcare Expenditure Drops
Mexican Household Expenditure Between 2008 And 2010 (In MXN)

Federal taxes are the major source of funding, while the states supplies complementary contributions. Additionally, the population prepays a small premium, inversely proportional to their income; the poorest families are exempt from any contribution. The eligible population includes those who do not have social security because they are self-employed, unemployed or out of the workforce; most of them are poor and live in households where females provide the majority of the income. Seguro Popular covered 51.8mn people in 2011.

Seguro Popular had a budget of MXN58,138mn (USD4,481mn) in 2011, which represented a rise of 21.5% in local terms. The states were allocated federal transfers of MXN45,088mn (USD3,476mn), which represented an increase of 21.8% in local terms. The state of Mexico was accountable for 15.8% of the total, followed by the states of Veracruz (8.5%) and Guanajato (7.9%). The Fund for Protection against Catastrophic Expenses (FPGC) budget amounted to MXN8,649.2mn (USD666.7mn), which represented a rise of 18.7% in local terms. 

SPSS BUDGET, 2004-11 (MXNmn)
  2004 2005 2006 2007 2008 2009 2010 2011 % Total % 10/11 Change
CS + ASF 3,367 6,383 12,170 18,899 24,916 31,275 37,030 45,088 77.6 21.8
Provisional budget fund 233 514 1,044 1,512 2,078 2,647 2,732 3,466 6 26.9
FPGC 620 970 2,885 5,033 5,692 7,057 7,285 8,649 14.9 18.7
Subtotal SP 4,220 7,866 16,100 25,444 32,686 40,979 47,046 57,203 98.4 21.6
                     
Operational expenditure 96 123 0 0 0 0 0 0 0 ~
                     
Other 119 294 598 382 476 553 798 935 1.6 ~
                     
Total 4,434 8,742 17,284 26,321 34,633 43,509 47,844 58,138 100 21.5
Source: Seguro Popular

We highlight that low healthcare spending in Mexico is a fundamental factor that hinders the access of innovative medicines in the country. Mexico's healthcare expenditure as percentage of GDP is the lowest among OECD countries. At 6.0% in 2012, it is also significantly lower than other major Latin American countries, specifically Brazil (9.3%), Argentina (8.6%) and Chile (7.2%). We expect that it will take a number of years before positive results are felt from the country's oil sector liberalisation. Over the long term, healthier fiscal revenue due to the energy reform will encourage the government to further increase public healthcare spending and improve national healthcare standards.

Low Spending
Healthcare Expenditure Forecast In Mexico

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