Taking Out Medical Insurance, By Covid-19 Is Now More Expensive

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Due to the accelerated increase in the number of infections, hiring costs have skyrocketed

The high number of Covid-19 infections at the beginning of this year has generated a greater sensitivity among Mexicans to have insurance, particularly major medical insurance, which is already reflected in this tourist destination, according to the Mexican Association of Insurance Institutions (AMIS). In a virtual conference, Edgar Karam, representative of the AMIS, explained that, as of the fourth quarter of 2021, an increase of 10% in the contracting of major medical insurance premiums and 3% in the contracting of life insurance was reported. Currently, only 1.3% of the population has insurance to cover expenses in the event of illness. According to AMIS data, 560,000 Mexican families suffer property damage each year associated with health costs. Insurance companies have covered the expenses of 24,500 users who had to be treated by Covid-19, with an average cost of 450,000 pesos in hospital care. AMIS points out that 60% of those who have been hospitalized exceed 400,000 pesos. INDEMNITIES Indemnifications for hospitalizations and deaths due to Covid-19 make the pandemic the fifth most expensive claim for insurers.

Currently, companies in Mexico have paid 924 million dollars and, according to the Mexican Association of Insurance Institutions (AMIS), it is very likely that this claim will become one of the most expensive in history, with amounts higher than those paid out after the 1985 earthquakes. In view of the high cost of treatment for Covid-19 in private hospitals, some hospitals have asked for a payment per admission that, in some cases, reaches half a million pesos. When asked if the insurance companies are covering this amount per admission, Edgar Karam explained that it depends on the conditions of the policies, since some insurance companies have direct payment agreements with the hospitals and others have reimbursement mechanisms to reimburse these sums to the insured. "We have seen that the person who enters a payment is requested the recommendation is to review the general conditions of the policies and advise the companies to see if the payment is by reimbursement process or direct payment. According to AMIS figures, these are the average costs per type of care as of January 21: hospitalization: 453 thousand pesos. Intensive care admission: 1 million pesos. Intubation: 3.7 million pesos. So far, the cost of 60% of those who have required private hospitalization for Covid-19 exceeds 400 thousand pesos.