Real Estate Investment Tied to Passing Medicare in Mexico

[George Puckett]

Real Estate Investment Tied to Passing Medicare in Mexico
7 JULY 2009

By: Khaki Scott

The pressure to pass laws allowing the use of Medicare benefits in Mexico is growing stronger as the aging American population seeks a better quality of life south of the border. At this point in time, there are many hundreds of thousands of legal American residents living in Mexico, both American-born and Mexican-born, who are eligible for Medicare benefits but who must return to the U.S. to take advantage of the benefits for which they pay premiums. There are millions who travel back and forth, unable to make a permanent move because they have chronic illnesses that necessitate being near U.S. medical facilities that accept Medicare. There are also millions more who would retire to Mexico if only they could use their Medicare benefits there. Estimates in this group run as high as 34.7 million Hispanics in the four border states alone by 2025, not to even mention all of the middle to lower-middle class Americans who would retire to Mexico “if only” they could use their Medicare benefits there.

What Medicare in Mexico Means to U.S. Taxpayers

What does all of this mean in terms of Medicare costs to U.S. taxpayers? The average retiree in Mexico spends approximately $1,000 per year out of their own pocket on health care. That is money that is coming directly out of the American economy. Multiply that by about 1.2 million documented retirees and two to three times that many who live in Mexico on tourist visas and that is a huge drain on the American economy! There are those who would suggest that retirees simply remain in the U.S. and take advantage of Medicare instead, but the American taxpayer may not have thought that scenario through to who it is that actually pays these bills. In addition to depending on a vast range of costly Social Services, the average retiree in the U.S. is currently costing Medicare $6,000 per year and that is expected to grow to $12,000 per year by 2020. It does not take a mathematical genius to see that allowing Americans to retire in Mexico and move their “cash only” $1,000 out-of-pocket health care expenditures to Medicare will, at the same time, save between $5,000 and $11,000 for every $1,000 spent. Now, is that not the best return on investment anyone has ever seen in history? It looks as if exporting retirees - with Medicare benefits - just might be one of the best investments the American taxpayer could ever make!
What Medicare in Mexico Means to Real Estate Investment in Mexico.

At the present time, Mexico is home to world class medical schools and medical complexes. Unfortunately, they are often located in larger metropolitan areas. This makes it difficult for many Mexicans and retired Americans to take advantage of their services. Medicare reimbursements, along with a steadily growing American population, would ensure that the private health sector has a solid foundation on which to expand into the areas most favored by American retirees. This means that investment in private hospitals and clinics would become more feasible. It also means that major retirement properties would be more viable if one of the draws is access to quality medical facilities.

Now is the time to not only join with Americans for Medicare in Mexico in insisting that long overdue legislation on this issue be passed, but now is the time to begin looking at real estate investment in Mexico with an eye to where retirees tend to live and what types of health care facilities those areas will be able to support in the future. At this point in time, it is not a question of whether Medicare will come to Mexico, but when it will come - and the savvy real estate investor will work to ensure that that day comes soon!

References:
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Americans For Medicare in MexicoAmericans for Medicare in Mexico, A.C. (AMMAC) is a legally constituted Mexican non-profit organization dedicated to bringing Medicare coverage to eligible seniors living in Mexico.

Warner, D.C. & Jahnke, L.R. (2001) Toward Better Access to Health Insurance Coverage for U.S. Retirees in Mexico.

Posted by: George Puckett-Mexico-My Space

[Carol Billups]

I read this week there are over six million Americans who, partly because of devalued retirement funds, are expected to move to Mexico so that they can retire comfortably. Caring for their health should be a priority for the US Congress, after all these folks paid into Medicare and Social Security their whole working lives. And economically? My office is next to a hospital; I frequently chat with family members taking a break from the waiting room. Yesterday one was explaining her mother was vacationing here and needed emergency heart surgery. The bill was $60,000 US. The same procedure in the US costs over $300,000! Medicare in Mexico just makes too much sense. Those who can should write to their congresspersons!
Carol Billups
Realty Executives Los Cabos
Cabo San Lucas, BCS, Mexico