

Nowadays, the subject of diseases weakens not only the body but also the pockets of some families. According to the Federal Commission of Economic Competition (Cofece), hospitalization costs are much higher in some states of the country, being Mexico City the one with the highest percentage.
Furthermore, according to a study, the market for hospital services is not very transparent, consumers face high costs of changing insurance companies, the way insurance agents are remunerated makes it difficult for new companies to enter the market and there is legal uncertainty.
Hospital service prices are significantly higher in Mexico City, Jalisco, Nuevo León and Estado de México. In addition, it was reported that hospitals with more than 100 beds tend to have higher prices.
A hospital for Covid 19 patients, within the Government’s Health for Wellbeing Program, operates in the CDMX (Photo: Cuartoscuro).
Examples of prices for hospitalization COVID-19
In case of being hospitalized for some complication like COVID-19 for example, a person could pay up to one million pesos in the CDMX; 400 thousand in the Edomex; 460 thousand in Jalisco and 720 thousand in NL.
One of the most economical outlays for citizens in the City is the attention due to a fracture, which could cost up to 21 thousand pesos. While in Edomex the price ranges between 40 thousand and 45 thousand pesos.
In order to promote competition and free concurrence, Cofece made several recommendations grouped in four aspects, which are:
-Encourage transparency in the hospital services market, for which it recommends that the Federal Consumer Protection Agency develop and publish indicators that measure the price-quality relationship of private hospital services.
-Promote consumer mobility by establishing mandatory seniority portability. To this end, the Commission recommends establishing a risk bureau with rules that guarantee its independent operation from insurers, so that they know the claims history of potential policyholders.
-To reduce search costs for consumers, Cofece proposes that the regulatory authorities promote the establishment of minimum standards for the websites of insurers and comparators, as well as the establishment of rules to be followed by comparators and other intermediaries that market in digital channels to promote or provide insurance intermediation services.
-Reduce barriers to the entry of new competitors by making it mandatory for insurance agents to show consumers information on the commissions and bonuses they receive from insurers and prohibit prizes, bonuses or contingent commissions, reducing the conflict of interest arising from the incentive for sales agents to place products from a single insurer. In addition, Cofece recommends that the regulatory authority issue the general provisions referred to in Article 76 of the Law to Regulate Financial Technology Institutions (Fintech Law) on the exchange of transactional data and information.
The idea of the study is that Cofece reaffirms its commitment to remain vigilant against public or private acts that may affect competition conditions to the detriment of the efficient functioning of markets and to the detriment of consumer welfare.
TYT Newsroom
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