One of the newest trends in home health care is outside of the traditional long-term care business. Instead of paying premiums for long-term care insurance or forking over thousands of dollars a month for assisted living facilities, many retirees are moving to Mexico.
It is cheaper and rapidly gaining in popularity. However, there are also many risks involved with this largely unregulated industry.
The Pros
Costs in Mexico are much lower than in the U.S. This is especially true for labor. Many people find that they can afford 24-hour care in Mexico for less than half what it cost in the states.
The Mexican government allows foreigners to enroll in their version of the Social Security Administration, even if they had never paid taxes into the system before. This provides basic health care and allows for access to substantially cheaper medications.
Many residents can share facilities with other Americans. Satellite television can keep them in touch with American shows and news programs.
The Cons
Regulatory oversight is much more relaxed in Mexico. It is not uncommon for residents to complain about a previous bad experience at another facility. Many facilities have been shut down due to rising costs, forcing their residents to move.
U.S. programs such as Medicare and Medicaid do not provide benefits to Americans living outside the U.S. This leaves you dependent on a Mexican health care system that is lacking some of the more advanced medicine commonly available throughout the U.S.
Medicine may be cheaper, but there may be risks associated with quality, including counterfeit medications. You really have to be careful to verify the source of medications.
The Trend
Still, with all the risks involved, people are increasingly turning to Mexico to help them enjoy a higher standard of living and quality of life in their twilight years. Skyrocketing health care costs in America are fueling this interest.
Now developers are taking note. They are viewing an opportunity to cash in on an aging baby boomer population that is for the first time beginning to enter retirement age. We can expect that more growth in this industry will lead to newer projects, many of them just across the border. Even new partnerships between U.S. and Mexican companies are likely.
What is unclear is whether the financial planning field can keep up. Their long-term care plans deal with U.S. based health care only
