AMLO to cut Mexico's low-cost healthcare program

Mexico president-elect Andrés Manuel López Obrador (AMLO) confirmed he will scrap the country's ultra-low cost public healthcare program (Seguro Popular) as part of a broad reshaping of the country's healthcare and pension system after taking office December 1.

Seguro Popular, though having faced numerous political, legal and budgetary problems in the past, reported having handled 27mn medical consults in the first half of 2018 as well as 1.4mn emergency room visits.

The program launched by former president Vicente Fox (of the opposition conservative PAN party) has been the target of AMLO's criticism going back to his first attempt to win the presidency in 2006.

AMLO renewed his attacks on the program and called for a general replacement in the run up to his election victory on July 1. Now with his Morena party holding strong majorities in both houses of congress and his inauguration only two months away, the comments Sunday suggest new details of his pension and healthcare overhaul are in the pipeline.

To date, AMLO has avoided going into meaningful detail on funding mechanisms or additional costs to public spending, preferring instead politically effective rhetoric.

"There is not going to be 'Seguro Popular', because it is neither insurance nor is it for the people. There will be medicine and free medical attention," said AMLO, as reported by party website Regeneración, adding that the new system would preserve the guarantees of article four of the constitution - the people's right to health care.

"Everyone has the right to health protection. The law will define the bases and modalities for access to health services and will establish the concurrence of the federation and the federal entities in matters of general health [in accordance to the constitution]," he added.

Grandiosity aside, AMLO's goal to create a universal pension system has been echoed to one degree or another in recent proposals for pension reforms from private sector groups, including pension fund manager association Amafore and the Mexican finance executive association IMEF.

The country's formal health care apparatus involves four federal institutions: private sector social security system IMSS, public sector employee system ISSSTE and military systems Sedena and Semar, as well as 30 social security administrations for the workers of each of Mexico's states. Roughly 50% of the population is not affiliated with any of these institutions.

Budgeted for 68.9bn pesos (US$3.7bn) in 2018, Seguro Popular reported 53mn members enrolled at the end of June, or approximately 80-90% of those not affiliated with any of the formal social security programs.