Several modifications to the GHL and the LNHI have come into force on January 1st, 2020. In this newsletter, we highlight those changes which will have the biggest impact to our clients in the Life Sciences space.
The modifications to the GHL and the LNHI follow two main policy purposes; to ensure the constitutionally ordered free universal healthcare, regardless of social security status, and to eliminate the former People's Insurance ("Seguro Popular"), substituting it for the Institute of Health for Well-being ("Instituto de Salud para el Bienestar" or "INSABI").
Below are some of the main aspects of the bill:
- » INSABI will act as a public health services provider instead of an insurer. Under the former structure, the People's Insurance provided health insurance for access to several different federal and local health institutions; people who weren't covered by Social Security would have access to this insurance, which would gradually increase covered illnesses.
With this change, INSABI will cease acting as an insurer, and will absorb administrative responisibilities over health care provision.
- » The former National Formulary of Health Supplies (Cuadro Básico) is substituted by a National Compendium. All National
Health Institutions will have to adhere to this Compendium. The main impact that this change will have is to speed up the ongoing process of concentration and centralization of drug/device access mechanisms. With the former National Formulary, Institutions such as ISSSTE and IMSS had the possibility to create their own specific sub-formularies for supply purchases.
- » Innovator and follow-on biologic drug (Biocomparables) products will be subject to the same code in the National Compendium. This provision will have the effect of creating pricebased competition between innovator biologic products and any relevant biosimilars.
- » Packaging of drug products will have to be different for drugs intended for sale in the public and private markets. This is a return to a policy position that had been abandoned a few years ago; It will likely increase costs associated to products in Mexico due to the need to produce differentiated packages.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.