The wave is coming

This is an older re-print off my blog gringosinparadise.com.mx

Mexico's Big Hope: Get 5 Million U.S. Retirees
From The Miami Herald/April 17, 2010 by Andres Oppenheimer

MEXICO CITY -- Mexico is silently working on proposals aimed at drawing millions of U.S. retirees to this country, which could eventually lead to the most ambitious U.S.-Mexican project since the 1994 North American Free Trade Agreement.

President Felipe Calderón is likely to propose the first steps toward expanding U.S. retirement benefits and medical tourism to Mexico when he goes to Washington on an official visit May 19, according to well-placed officials here. If not then, he will raise the issue later this year, they say.

"It's one of the pillars of our plans to trigger economic and social well-being in both countries,'' Mexico's ambassador to the United States Arturo Sarukhan told me. "We will be seeking to increasingly discuss this issue in coming months and years.''

Calderón brought it up during a U.S.-Canada-Mexico summit in Guadalajara in August last year, but President Barack Obama asked him to shelve the idea until he was able to pass healthcare reform, another official told me.

Now that Congress has passed healthcare reform, Calderón is preparing to charge ahead.

A GROWING MARKET
There are already an estimated 1 million Americans living in Mexico. And according to Mexican government estimates based on U.S. Census figures, that number is likely to soar to 5 million by 2025 as the U.S. population grows older and more Americans look for sunny, cheaper places to retire.

The U.S. Census projects that the number of U.S. retirees will soar from 40 million now to nearly 90 million by 2050. Already, 5 million American retirees live abroad, of whom 2.2 million are in the Western Hemisphere -- mostly in Mexico, the Dominican Republic and Brazil. Another 1.5 million live in Europe and 850,000 in Asia.

The key to luring more U.S. medical tourists and retirees to Mexico and other Latin American countries will be getting hospitals in the region to be certified by the U.S. Joint International Commission, which establishes that they meet U.S. hospitals' standards. There are already eight Mexican hospitals certified by the JIC and several others awaiting certification.

According to Mexican government estimates, healthcare costs in Mexico are about 70 percent lower than in the United States. And from my own experience, those estimates are right: As I reported at the time, when I was hospitalized in Mexico two years ago for an emergency operation, my hospital bill was indeed about 70 percent lower than what it would have been in Miami.

So what will Calderón specifically propose to Obama? Most likely, the Mexican president will suggest starting with a low-profile agreement that would allow the U.S. Health Care Financing Administration to pay for Medicare benefits to U.S. retirees in Mexico. Under current rules, Medicare only covers healthcare services in the United States.

IT JUST MAKES SENSE
My opinion: Mexico and much of Latin America are bound to become growing U.S. retirement and medical tourism destinations, much like Spain has become a permanent living place for Germans, Britons and Northern Europeans.

You won't read much about it now because neither Calderón nor Obama will emphasize it publicly while the drug-related violence in northern Mexico is making big headlines, and while the political wounds from the recent U.S. healthcare debate are still open in Washington, D.C.

But I'm increasingly convinced that, as the violence in Mexico subsides and the healthcare debate becomes a distant memory in Washington, medical benefits' deals will become a top U.S.-Latin American priority. Just as free-trade agreements were the big thing of the 1990s, healthcare agreements will be the big deal of the coming decade.

I wouldn't be surprised if Calderón and Obama take the first baby steps toward a U.S.-Mexico healthcare agreement by finding a way to pay for Medicare benefits for U.S. expatriates in Mexico, or getting U.S. states to allow similar payments. Then, most likely after the 2012 presidential election in both countries, the two would start negotiating a more ambitious deal.

Demography, geography and economics are pointing in that direction. With the U.S. population getting older, a record U.S. budget deficit, rising U.S. healthcare costs, and Mexico and other Latin American countries badly needing more tourism and investments, this should be a win-win for everybody.

I question what benefit the U.S. could derive by extending Medicare benefits to U.S. expats.
From a pragmatic viewpoint......it would be the reverse as it would increase costs to Medicare.
As of now, retirees are either buying their own health insurance or twisting in the wind paying out of pocket. In extremis, they head back to the States to use Medicare.

Furthermore, when a retiree leaves the states and moves overseas, his/her money leaves, too....so what's the benefit for the U.S. there? Lost a "consumer" in that case. Win-win? Don't think so.

The point is most experts agree that if retiree's could us their Medicare benefits it would save the US system 50-70% in cost and thus help bail out the broke US system.
but with the US drug manufactures screeming bloody murder and unions don't look for this option anytime soon. But it will come. They will have no choice.

As to your point about money leaving the states, thats why the press is lying so much about how we are all involved in a daily shooting war.

I have a very good US based company who offers excellant health coverage that will pay here and in the US

"The point is most experts agree that if retiree's could us their Medicare benefits it would save the US system 50-70% in cost and thus help bail out the broke US system."

I'm missing your point entirely. Please clarify how the U.S. system would save money by giving U.S. retirees Medicare coverage out of the country. Specifically, por favor.

For a simplistic example: I've lived in Mexico over seven years. In that time, I have not cost the Medicare system a dime. With Medicare coverage, I'd save my own money and cost the U.S. money. So?

I do agree that the Wave is heading this way. Simple reasons: Good climate and, if one is judicious, reasonable cost of housing and living. Many will counter with the low cost of housing in some states, however, they aren't talking about the most desirable areas.

60% or more the US pays out is for admin cost and not medical care or procedures.

It is a totally corrupt system that will never be fixed to many stake holders protecting their turf

I think our newbie must be a real estate salesperson.

nope not a realtor

larryc wrote:60% or more the US pays out is for admin cost and not medical care or procedures.

It is a totally corrupt system that will never be fixed to many stake holders protecting their turf

And setting up a system to pay for expats is going to help Medicare how?

How about we start fixing the system by giving all the pharma and med lobbyists a free one way trip to the mooon?

how do you feel about shooting them? Not such a bad option really.

It"s quick and cheap, hell we could run a raffle to sell the right to shoot them and put it on Fox

larryc wrote:how do you feel about shooting them? Not such a bad option really.

It"s quick and cheap, hell we could run a raffle to sell the right to shoot them and put it on Fox

I prefer the Moon. No mess.

Now, about that original question???? I'm no "expert" and my education didn't include the intricacies actuaries understand......but I can add, subtract and multiply like an s.o.b., so that money saving notion doesn't fly in my airspace.

To put it in another way: A philosopher from France, upon observing the U.S. back when, was of the opinion that the American democracy would spend itself into bankruptcy. This may be completely inevitable. And......all empires eventually do fall. We're on our own here in paradise, baby.

we might need to moon later as we like to say in Oregon
"Earth first well log the other planets later"

I thought "to moon" meant a somewhat obscene display of cheek.

(yeah, yeah...I know what you meant, but couldn't resist. Some typos should be celebrated.)

Solovino wrote:I think our newbie must be a real estate salesperson.

Insurance--"I have a very good US based company who offers excellant health coverage that will pay here and in the US"

That quote could either mean he has good insurance (for himself) or he is an insurance agent for a company. Good question. Which is it, Larry?