Mexico amended its Federal Revenue Law on 7 November 2025, removing insurers’ ability to recover 16% VAT on goods and services used in covered major medical treatments. The change is retroactive from 1 January 2025 and is expected to raise major medical costs by 10‑12%, potentially increasing loss ratios by 8‑12% and overall captive costs by over 20%.
Insurers can no longer recover 16% VAT on goods and services used in covered major medical treatments (hospital services, medical fees, supplies).
The change applies retroactively from 1 January 2025.
The VAT change is expected to raise major medical costs by an estimated 10‑12%.
Loss ratios may increase by approximately 8‑12% year over year due to VAT alone.
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Lockton · 20 days ago
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VATabout · about 1 month ago
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VatCalc · about 2 hours ago
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VATCalc · about 22 hours ago
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