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Mexico’s 2009 Health Secretariat Budget Grows by 16.9% to Reach US$6 bil.

Published: 01 April 2009
Mexico’s Secretariat of Health budget has expanded by 16.9% in comparison to 2008, to reach a total of 85.037 billion Mexican pesos (US$6.003 billion) for 2009

IHS Global Insight Perspective

 

Significance

The Mexican Secretariat of Health's 2009 budget will account for 85.037 billion Mexican pesos (US$6.003 billion), representing 3.66% of the total public spending for the year.

Implications

Budget expenditure growth will strongly benefit the uninsured sector of the population, who will receive 41.4 billion pesos in funding.

Outlook

The rise in public expenditure on healthcare services in Mexico is expected to influence the consolidation of the universal healthcare programme set to be achieved by 2011. Equally, the expansion of medication coverage is expected to continue, with the introduction of new treatments on drugs reference lists.

The Mexican Secretariat of Health will receive 85.037 billion Mexican pesos (US$6.003 billion) of healthcare budget for 2009, representing 16.9% growth from 2008, reports El Financiero. This amount represents 3.66% of total public spending in the country, compared to 2.13% in the early 1990s.

The Secretariat of Health accounts for a quarter of the overall healthcare budget in the country, which for 2009 will reach 347 billion Mexican pesos. The popular insurance programme, Seguro Popular, will receive 133.6 billion Mexican pesos from the government. Of this amount, the health secretariat will provide 85.307 billion Mexican pesos. Conversely, 213.9 billion Mexican pesos will be allocated to cover the insured sector of the population, from which 159.8 billion and 33.8 billion Mexican pesos will be spent on social security (IMSS) and the Institute of State Workers' Services (ISSSTE) respectively.

Healthcare Public Expenditure

 

2008

2009

Sector

Amount(Million Mexican Pesos)

Percentage

Amount (Million Mexican Pesos)

Percentage

Uninsured Population

107 585

37.3

133.655

38.4

Insured Population

180 508

62.7

213 994

61.6

Total

288 093

100

347 649

100

Source: Secretaria de Hacienda y de Credito Publico

A Closer Look at the Budget

The Secretariat of Health budget for this year represents 0.61% of GDP in Mexico, compared to 0.30% for 2000. Overall, the healthcare budget has doubled in the last nine years, from 1.90% to 3.65% of the country’s GDP in 2008.

Per-capita health expenditure has expanded in the country, accouting in the early 1990s for an average of 254 Mexican pesos per person, rising to 365 in 2005, and 790 this year. This has been partly attributed to the lower rate of growth of the Mexican population, which has decreased from 1% in 2000 to 0.82% in 2008.

Following 2007 deficiencies in budget expenditure, when 204 million Mexican pesos remained unused, stricter regulatory guidelines for budget expenditure were introduced in 2008 in order for the institution to maximise its resources. For this year, the health secretariat will continue following these guidelines and is expected to concentrate most on improvement of healthcare services in the Seguro Popular, which covers the uninsured sector of the population. Accordingly, funding for this programme will increase from 25 billion Mexican pesos in 2007, to 41.4 billion Mexican pesos this year.

Secretariat of Health Expenditure (Million Pesos)

Year

Health Secretariat Expenditure

% of Total Health Expenditure

% of GDP

Per Capita Expenditure

2009

85 036

3.66

0.61

790

2008

69 426

3.64

0.62

655

2007

55 199

2.78

0.54

525

2006

44 541

2.49

0.45

428

2005

37 737

2.28

0.40

365

2004

27 987

1.79

0.31

275

2003

27 821

1.77

0.32

276

2002

27 713

1.87

0.32

278

2001

26 675

1.93

0.31

271

2000

25 533

1.90

0.30

260

Source: Secretaria de Hacienda y de Credito Publico

Outlook and Implications

The allocation of 347 billion Mexican pesos for the healthcare sector in 2009 comes as a positive surprise, particularly taking into account the growing concerns on expected reductions to the budget announced last September by healthcare officials in the country (see Mexico: 29 September 2008: Budget Cut Threatens Universal Access to Healthcare in Mexico).

Representing the main priority of the government, the uninsured sector of the population is expected to most benefit from the healthcare budget increment for this year. In 2008, 1.8 million new members registered in this scheme to reach a total of 9.1 million families—27 million beneficiaries (see Mexico: 10 February 2009: Mexican Popular Insurance Registered 9.1 mil. Affiliated Families in 2008)Demand for Free Medical Services in Mexico D.F. Expected to Grow by 10% in 2009). . For this year, demand for these services is expected to continue this growth trend and expand its coverage by 10% (see Mexico: 7 January 2009: Demand for Free Medical Services in Mexico D.F. Expected to Grow by 10% in 2009).

Looking into the future, government plans to introduce a universal healthcare system by 2011 seem closer to completion as, despite economic difficulties, the government continues to prioritise healthcare expenditure in the country.

Expenditure on medication is expected to also benefit and continue to grow as new treatments are introduced onto public drugs reference lists (see Mexico: 9 February 2009: Mexican Popular Insurance to Reimburse Treatment for Lymphatic CancerBudget Cut Threatens Universal Access to Healthcare in Mexico). Similarly generics will continue to receive special attention from the government, who are expected to prioritise these products over branded medications. The budget for drugs expenditure will continue to represent 20% of the total public healthcare budget in the country.
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