Has “secure” finances until 2035

Has “secure” finances until 2035
  • Although the finances of the IMSS have been questioned, the authorities assure that there is a surplus.
  • According to the analysis carried out, the Institute has financial sufficiency until the year 2035, which means 2 more years compared to the previous Report.
  • At the end of fiscal year 2021, Social Security obtained an operating surplus of 830 million pesos.

Over the last couple of years, doubts have been finances of the Mexican Social Security Institute (IMSS). Especially due to the conditions of their units and the constant complaints by the drug shortage. But to end the speculation, the authorities themselves pointed out that there is no danger in the short and medium term.

In this case, on an annual basis, Social Security presents the Inform the Federal Executive and the Congress of the Union about its Financial Situation. The objective is to comply with what is established by law, and that this information leads to the definition of possible strategies that allow strengthening its solidity, efficiency and dedication to service, for the benefit of the entitled population.

The report details the financial situation and the main risks that are identified for each of the insurances granted by the Institute in its Mandatory Regime: Work Risk Insurance, Sickness and Maternity Insurance, Disability and Life Insurance, and Nursery and Social Benefits Insurance; as well as for the Family Health Insurance which is part of the Voluntary Regime.

In addition, the Report details the situation of labor liabilities and other contingent liabilities, demographic and epidemiological trends of the beneficiary population, and other factors that determine the IMSS operating context. It also contains information on the status of the Institute’s facilities and equipment.

Also addressed are main actions that the Institute has undertaken to favor its financial equilibrium. It is important to point out that the accounting and actuarial results presented were audited by external auditors.

IMSS has healthy finances despite the pandemic

Although the financial management implemented allowed the IMSS to have an operating surplus of 830 million pesos at the end of 2021, the analysis of its financial situation reveals, in line with previous reports, the presence of a set of risks that affect its current sustainability. and future.

Among the most relevant risks identified are: the demographic and epidemiological transition that implies that the Institute treats increasingly complex and costly chronic degenerative ailments (1 out of every 4 pesos that was collected for the Sickness and Maternity Insurance in 2021 was allocated to the care of diabetes mellitus, arterial hypertension and chronic renal failure); and the expected growth of the payroll associated with the Retirement and Pension System.

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In addition to the above, the pandemic has had a significant impact on institutional finances derived from the increased demand for economic benefits, as well as medical and hospital services related to COVID-19 care. Notwithstanding, the required expense was met with a charge to the authorized budget, through the reorientation of resources, seeking the financial balance that would guarantee compliance with the obligations established by the Social Security Law.

The actuarial balance reflects that the Work Risk and Disability and Life Insurance show a surplus, that is, it is estimated that your income will be sufficient to finance your expenses and that, therefore, your financing premiums are also sufficient. In contrast, for the Sickness and Maternity Insurance in its two coverages (insured and medical expenses for pensioners) the actuarial balance shows a deficit result, which indicates that its current financing premiums are not sufficient, with a gap of 3 percentage points between the financing premium and the breakeven premium.

In the case of the Nursery and Social Benefits Insurance, its balance is barely positive, however, the particular perspective of the insurance indicates that, if measures are not implemented to improve its financial situation, a growing deficit will be observed in the medium term; The estimate for this insurance considers the expansion of the childcare service for the daughters and sons of working men in accordance with the LSS reform of March 2020, which, although it implied an expansion of coverage, did not increase the source of insurance financing .

Services offered by Social Security every day

During the reporting period, the IMSS offered a wide variety of preventive and curative medical services to the entitled population: on a typical day, the Institute provided more than 418,000 medical consultations (of which 40,000 were for emergencies), had around 5,400 hospital discharges and performed almost 3,000 surgeries and more than 715,000 clinical tests. This meant an increase of 25% compared to 2020.

There is still a long way to go to exceed the number of medical care that was provided before the pandemic, but the results show that efforts have been in the right direction.

The Institute reorganizes itself and strives to strengthen medical, economic and social benefits, whose coverage reached 71.6 million people at the end of 2021, which means more than 50% of the country’s population. However, it is essential to implement measures to strengthen it, which must be based on a clear diagnosis of its financial situation.