are diabetic (twice the OECD average of 6. 9
percent). Over the past 10 years, programs
have been implemented to improve nutri-
tion, including food labeling regulations, a
sugar tax, and restrictions on advertising
to children.[ 11]
With the recent addition of the unin-
sured now being covered by public insur-
ance, Mexico’s capacity to meet health care
demand is strained. To help address this
issue, Mexico has developed one of Latin
America’s most sophisticated telehealth
industries. Members are provided telephone
access to licensed doctors 24 hours a day,
seven days a week, along with deep dis-
counts at a national network of more than
10,000 health care providers in clinics, labs,
and hospitals. This service targets low- and
middle-income households.[ 12]
Between 2003 and 2013, as an additional
50 million underinsured were brought
into the Seguro Popular, public health care
spending in Mexico increased from 2. 4
percent to 3. 2 percent of gross national
product. There are both opportunities for
savings (administrative load makes up 10
percent of health care costs) and compelling
reasons to subsidize more (out-of-pocket
expenses in Mexico are over 40 percent
of total health spend, the highest in the
OECD). The OECD has recommended
that Mexico adopt measures to better harmonize the delivery systems, prices, health
information systems, and administration
across the multiple existing health schemes.
Lessons for the United States
Both Mexico and the United States face the
same problems around portability, administration, and complexity resulting from
fragmented health care systems based on an
employer-sponsored model. In the United
Want to drive greater value from your AXIS conversion?
Go with an advisor who’s been down the road before.
Steering a successful AXIS conversion takes in-depth experience and that’s what you’ll get from KPMG’s member
firms. KPMG partners and professionals have more than 200 combined years of AXIS actuarial modeling
experience and have implemented more than 100 significant conversions. So if you want to speed the return
on your investment and gain more value from AXIS’ pricing, valuation and modeling capabilities, contact us directly.
And avoid any detours.
Partner & North American Leader
416-457-8622 | firstname.lastname@example.org
Recognized as one the Global Leading
Actuaries 2015 by Acquisition International
KPMG in the U.S.
Partner and Business Leader
KPMG in Canada
KPMG is a global provider of solutions
For more information on how KPMG’s Actuarial Consulting service can help, contact:
Out-of-pocket expenses in Mexico
are over 40 percent of total health
spend, the highest in the OECD.