Willingness To Pay For Cross-Border Health Insurance Between The United States And Mexico

Abstract

This paper estimates the demand for a binational health plan comprising preventive and ambulatory care in the United States and comprehensive care in Mexico. The results show that 62 percent of the surveyed population were interested in the product, and 57 percent were willing to pay $75-$125 a month if services in Mexico were provided in public hospitals. Only 23 percent were willing to pay $150-$250 a month for the same plan if services in Mexico were offered through private providers. The strongest predictors of willingness to pay were having insured dependents in Mexico and sending them remittances for health purposes.

Redressing the Limitations of the Affordable Care Act for Mexican Immigrants Through Bi-National Health Insurance: A Willingness to Pay Study in Los Angeles

“…These findings are consistent with other studies in California [13]. Respondents' who had a higher willingness to pay for bi-national health insurance included individuals who used a greater share of remittances for health care.…”

“…Dependents in Mexico were more likely to use private medical services rather than public services, which is consistent with figures reported by previous studies [13]. It is of interest to note that 11 % of respondents with dependents in Mexico reported that their relatives had trouble paying for medical care.…”

“…This estimate is lower compared to others used in the previous literature since costs associated to services provided by community clinics in the US and by Seguro Popular in Mexico are lower compared to the cost estimates used in previous studies [13].…”

“…In addition, another study found that Mexican migrants in the US tend to return to Mexico to receive hospital care for serious illnesses in response to limited access to care in the US [12]. The main predictors of healthcare use in Mexico are health need, lack of health insurance coverage in the US, employment status, delay seeking care, more recent immigration, limited English proficiency, and prescription drug use [13]. Additionally, cultural factors such as language and provider attitudes influence healthcare utilization south of the border.…”

“…Few studies have explored Mexican immigrants' interest and willingness to pay for BHI plans [13]. In particular, little is known about the types of individuals who would be interested in purchasing these plans, the main motivations to purchase these plans, as well as the characteristics and costs of insurance plans they would be interested in.…”