Health Insurance 101

Health Insurance 101

Health Insurance 101

Health insurance is great because it protects people from financial loss due to medical expenses due to an injury or illness. When you buy health insurance in Mexico, the insurance company may pay for some or all of your health care services. Knowing the basic health insurance terms will help you understand the Mexican health insurance system. 

The purpose of this article is to break down the basics and provide information on some important factors in your insurance journey when trying to find the best health insurance plan in Mexico. 


What is a deduction?Health Insurance 101

You may have heard the term health insurance before. The deductible is the amount you must pay each year before your health insurance will cover your medical care.

For example, if your health insurance plan has an annual deductible of $1,500, that means you pay $1,500 before your health plan goes into effect. Once the deductible is met, the beneficiary pays only the deductible or coinsurance, and the insurance company pays the rest.

Depending on your plan, your deductible may be higher or lower, which affects how much you pay for medical services. 


How do I choose the best deductible for my situation?

An insurance scheme is a balance between deductibles and premiums, the higher the premium you pay every month, the lower the deductibles and vice versa. There are two types of deductibles: high-deductible plans and low-deductible plans.

With a high-deductible plan, you may pay more out-of-pocket and less in premiums until you pay 100%. With a low-deductible plan, you can pay higher premiums and lower your costs until you pay 100% of your deductible.

Choosing the best deduction is very important. If you have a large family or have a chronic illness that requires frequent hospital visits, a low-deductible plan may be best for you. If your medical bills are modest and you don’t visit the hospital often, you may be better off with a higher deductible plan. 


What is the insurance premium?

A premium is a fixed amount that you pay for your health insurance policy’s medical coverage every year, quarter, or month, regardless of whether you use healthcare services that month. 


What if I stop paying the premium?

Private health insurance in Mexico is not as expensive as in the US or Canada. However, if you stop paying premiums due to financial hardship, your health insurance company may terminate your coverage.

However, they may give you a grace period before your coverage ends. If you still have to pay immediately, you no longer have health insurance in Mexico.


Health Insurance 101What conditions does your policy cover?

When shopping for health insurance in Mexico, keep in mind that these plans offer different levels of medical coverage. Some routine checkups include doctor visits, general checkups, dental care, maternity, mental health, and medical evacuations. To avoid confusion, consult an insurance specialist who can help you understand the Mexican health insurance system and what each insurance plan covers.


In Network Vs. Out of Network

When a doctor or hospital accepts your health insurance plan, that means they are “in-network” and you have a contract with the health insurance plan provider. Out-of-network hospitals or doctors won’t accept your plan, which means you’ll pay more for your care, and insurance companies may only reimburse you up to certain limits. In an emergency, this is usually omitted, but it’s best to check with your insurance company and provider if possible. 


If my favorite doctor is out of network, can I still see them?

If your favorite doctor is out-of-network, you’ll pay more for medical care, but you can still get care from them.


Why do I still need health insurance?Health Insurance 101

While a medical emergency can bankrupt you, health insurance plans can provide a soft landing in difficult medical situations. So if you get sick or need urgent treatment, your health insurance may cover part of the cost. 

Many health insurance companies in Mexico offer affordable health insurance plans, but to get the perfect plan, you can start by checking out our trusted partners’ health insurance plans. If you plan to live in Mexico temporarily or permanently and have questions about health care, contact us so our trusted insurance solution experts can help you.

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