Mexico and the U.S. may have an agreement within one year to let Americans use their Medicare and Medicaid insurance at Mexican health-care facilities, said Bruno Ferrari, chief executive officer of Mexico’s foreign investment agency.

“This would be a great opportunity for the industry in this country,” said Ferrari, whose agency is known as Promexico, in an interview today in Mexico City. Mexican “authorities are interested -- let’s see what comes from the U.S. side.”

Ten U.S. and Canadian companies have expressed an interest in building facilities to cater to Americans seeking to take advantage of low medical expenses, Ferrari said, without naming them. Some health services in the U.S. can cost 12 times what is charged in Mexico, Ferrari said.

Medicare is the U.S. government’s insurance program for the elderly and disabled. Medicaid, a joint federal-state program, serves the poor. Combined spending for both is projected to reach $889.1 billion this year, according to the U.S. Centers for Medicare and Medicaid services. That’s about a third of all health-care spending in the U.S.

A spokesman for Medicare and Medicaid couldn’t immediately be reached for comment.

The Philippines and Japan are among countries seeking to attract so-called health tourists, who travel abroad in search of cheaper health services. Robinsons Land Corp., the third- largest Philippine developer, rose to a 16-month high in Manila yesterday after the company said it may venture into medical tourism.

The new rules would boost Mexico’s real estate industry, since easier access to health care makes Americans more inclined to buy homes in the country, Ferrari said.

“There are developers interested in creating new cities,” Ferrari said.

source: Bloomberg.com