Everything you need to know to offer healthcare benefits to distributed teams, adapted to the specific realities of Mexico, Argentina, and Colombia.

This guide provides a comprehensive overview to help you design healthcare benefit plans for remote employees in Mexico, Argentina, and Colombia. It addresses the structure of local healthcare systems, essential considerations for implementation, specific terminology, best practices, and actionable recommendations.

Providing healthcare to distributed employees isn’t just a smart move for their well-being—it’s also a practical operational necessity. When working remotely, access to medical services, coverage for major health expenses, and preventive care are critical components of an employee value proposition that truly works.

Healthcare for remote teams in Mexico

Healthcare system overview

• Hybrid healthcare system: Mexico has a hybrid system that includes public institutions like the IMSS and private healthcare providers. Contributions to the IMSS are mandatory for formally employed workers. However, due to quality concerns and long wait times, private insurance is highly valued. For freelancers, contractors, or unregistered remote workers, IMSS coverage doesn’t apply unless they voluntarily enroll. Even then, coverage is usually limited.

• Out-of-pocket expenses: About 40% of healthcare spending in Mexico is paid out-of-pocket by individuals, reinforcing the need for private insurance.

• Epidemiological transition: There is a growing prevalence of chronic non-communicable diseases like diabetes, hypertension, and cancer, which increases demand for specialized medical services.

• Recommendation: Offering a private Major Medical Expenses Insurance (SGMM) plan complements public healthcare and provides access to high-quality private clinics.

The SGMM (Seguro de Gastos Médicos Mayores – Major Medical Expenses Insurance) is the standard of care for those seeking immediate attention and access to top-tier hospitals.

What do employees in Mexico expect?

• SGMM that provides access to hospitals like Médica Sur, ABC, or Ángeles

• Access to specialists without weeks-long wait times

• Coverage for emergencies and hospital stays

• Immediate access to telemedicine services

• Mental health services included as a benefit

Offering only IMSS—or nothing at all—is completely inadequate in high-demand roles, such as those in tech.

Types of healthcare plans

• SGMM (Major Medical Expenses Insurance): Covers expensive medical events like hospital stays, surgeries, and serious treatments. This is the industry standard.

• Minor Medical Expenses Insurance: Covers doctor visits, medications, and outpatient procedures. Less common, but attractive as a complementary benefit.

• Combined Insurance Plans: Include both major and minor medical coverage, ideal for comprehensive protection.

• Dental and Vision Insurance: Additional benefits that help your company stand out.

• Recommendation: Prioritize SGMM, and supplement it with minor medical coverage or telemedicine options for remote teams.

Common providers: Zurich, Plan Seguro, SofíaSalud, AXA, MetLife, Allianz

Legal and tax considerations in Mexico

• If the employee is on payroll, you must register them with IMSS. The cost is shared between the employer and employee based on the salary.

• SGMM is optional and can be partially deducted from corporate income tax (ISR).

• For independent contractors, you can offer SGMM as an additional benefit without creating a formal employment relationship, if structured properly.

Key healthcare terms in Mexico

• Gastos Médicos Mayores (SGMM): Covers expensive events (equivalent to major medical insurance in the U.S.)

• Gastos Médicos Menores: Includes general doctor visits and medication (similar to outpatient insurance)

• Carencia: Waiting period (6–12 months) for certain coverages

• Preexisting Conditions: Typically excluded or covered at higher premiums

• Siniestralidad: Claims ratio (in Mexico, also used when referring to preexisting conditions)

• Deducible: Fixed amount paid out-of-pocket before coverage kicks in (MXN $5,000–$20,000 or USD $250–$1,040)

• Coaseguro: Co-insurance, or 10–20% of the total cost after the deductible, which the policyholder is responsible for

• Cuadro Médico: Provider network

• Suma Asegurada: Coverage limit (ranges from MXN $1M to $50M)

  
  

Healthcare for remote teams in Argentina

Healthcare system overview

• Mixed healthcare system: Argentina has a mixed system that includes public services (free but with varying quality), obras sociales (mandatory union-managed insurance for formal employees), and private providers (known as medicina prepaga, e.g., Swiss Medical or OSDE).

• Out-of-pocket expenses: Around 30% of healthcare expenses are paid out-of-pocket by individuals, making private health plans highly attractive.

• Chronic illnesses: There is a growing burden of non-communicable diseases, which increases the demand for specialized healthcare services.

• Recommendation: Complement the mandatory obra social with a medicina prepaga plan to ensure access to private clinics and premium services.

For remote workers—especially contractors or monotributistas (self-employed professionals under Argentina’s simplified tax regime)—people typically prefer to purchase medicina prepaga directly, avoiding union-managed obras sociales altogether.

What do employees in Argentina expect?

• Medicina prepaga plans from well-known brands

• Coverage that includes mental health, dental, and vision care

• Virtual medical consultations

• Access to high-end private hospitals and clinics

Professionals with high qualifications expect full coverage, not a symbolic discount.

Types of health plans

• Standard Medicina Prepaga: Varies based on age and coverage tier.

• Copay requirements: Some mid-tier plans require copayments ranging from ARS 2,000 to 10,000 (approx. USD $2–$10) per visit.

• Inflation adjustments: Plans are subject to monthly regulated rate increases, typically between 6% and 12%, due to inflation.

Common providers: OSDE, Swiss Medical, Galeno, Omint

Legal and tax considerations in Argentina

• If you hire employees formally (on local payroll), enrollment in a union-managed obra social is mandatory. The contribution is split: 6% from the employer and 3% from the employee (based on gross salary).

• You can offer a medicina prepaga plan as a complement to the obra social, and either cover the additional premium or reimburse the difference.

• For independent contractors, you can partially or fully cover the cost of a medicina prepaga plan as a benefit.

• Medicina prepaga can be partially deducted from corporate income taxes if the company pays directly from a business bank account and operates locally in Argentina.

Key healthcare terms in Argentina

• Medicina Prepaga: Private health insurance plans offering comprehensive coverage

• Obra Social: Mandatory union-run health insurance for formal employees

• Carencia: Waiting period (8–12 months before some services are covered)

• Preexisting conditions: Usually covered after 12 months of enrollment

• Siniestralidad: Claims ratio (term more commonly used in auto or technical insurance, not as much in health insurance)

• Copago: Copayment (required per service under some plans)

• PMO (Plan Médico Obligatorio): A mandatory list of minimum healthcare services

• Cartilla Médica: Provider network list

  
  

Healthcare for remote teams in Colombia

Healthcare system overview

• General System of Social Security in Health (SGSSS): Established by Law 100 of 1993, Colombia’s system includes a contributory regime (mandatory for formal employees, managed by EPS providers) and a subsidized regime (for vulnerable populations).

• Out-of-pocket expenses: Around 20% of healthcare spending is paid directly by individuals due to the limited scope of the mandatory Benefits Plan (PBS).

• Chronic conditions: There is a growing prevalence of non-communicable diseases, increasing overall medical costs.

• Recommendation: Offer prepaid health plans or supplemental insurance policies in addition to EPS coverage to ensure access to private clinics and specialized services.

Colombia has a mandatory mixed healthcare model:

• EPS (Entidad Promotora de Salud): The basic healthcare provider network required by law for all employees.

• Prepaid health plans: Provide premium access to specialists, private hospital rooms, and faster care.

• Complementary policies: Additional insurance options that enhance EPS coverage, especially for complex or high-cost medical needs.

For remote teams, professional workers often highly value prepaid plans to avoid the delays associated with public EPS networks.

What do employees in Colombia expect?

• Enrollment with a reputable EPS (e.g., Axa Colpatria, Sura, Sanitas, Compensar)

• Premium prepaid healthcare coverage

• Access to mental health care, nutritional services, and wellness programs

• Virtual healthcare and online medical guidance

Legal and tax considerations in Colombia

• EPS enrollment: Mandatory for employees on payroll. Contributions are split—8.5% from the employer and 4% from the employee.

• Prepaid plans: Can be offered as a voluntary benefit.

• Tax deductions: Since prepaid plans are not mandatory, they may be deductible under Colombia’s Tax Code.

• Supplementary medical expenses: Can be deducted on personal income tax filings if properly documented.

Types of health plans

• Complementary policies: Enhance EPS coverage by including access to high-end hospitals and telemedicine services.

• Specific plans: Additional policies for dental, vision, or mental health care—these are less common.

• Recommendation: Offer comprehensive prepaid health plans that include telemedicine and mental health coverage.

Common Providers: AXA Colpatria, Colsanitas, Coomeva, Sura

Key healthcare terms in Colombia

• Medicina prepagada: Comprehensive private health insurance plans

• EPS (Entidad Promotora de Salud): Mandatory healthcare provider organizations

• PBS (Plan de Beneficios en Salud): Government-mandated minimum health services

• Carencia: Waiting period (6–12 months before some services are accessible)

• Preexisting conditions: Typically covered after 12 months of enrollment

• Siniestralidad: Claims ratio

• Copago: Copayment per service

• Red de prestadores: Provider network

  
  

Special considerations: Payroll vs. Contractor health benefits

Employees hired on local payroll

When employees are hired formally in Mexico, Argentina, or Colombia (i.e., on payroll), there are minimum legal requirements for healthcare coverage. These are not optional—failing to comply could expose your company to fines or labor claims.

Mexico:

• You are legally required to enroll all payroll employees in the IMSS.

• You may offer private SGMM coverage as a complement to the public IMSS plan, but not as a replacement.

Argentina:

• Payroll employees must be enrolled in a union-managed obra social (mandatory health fund).

• Offering medicina prepaga does not exempt you from this obligation.

Colombia:

• Employees must be enrolled in an EPS from the first day of formal employment.

• Prepaid health plans and complementary insurance can be offered as add-ons, but cannot replace EPS coverage.

What does this mean for People Operations?

You cannot opt out of mandatory public healthcare enrollment just because you’re offering a private health plan. Even if you provide private coverage, the public enrollment must still be completed legally and in full.

Contractors and Freelancers

In contrast, when working with contractors or freelancers, there are no legal obligations to provide health coverage. However, healthcare remains a crucial element in evaluating the overall value of your offer.

Mexico:

• You can offer access to an SGMM plan or provide a customized individual policy.

• Optionally, you can reimburse medical expenses under a structured benefits plan.

• Atlas enables you to offer local healthcare coverage to all your contractors.

Argentina:

• Most contractors choose to enroll in medicina prepaga independently.

• You can help by subsidizing part of the monthly premium or negotiating corporate rates on their behalf.

• Atlas enables you to offer local healthcare coverage to all your contractors.

Colombia:

• Contractors often choose to voluntarily enroll in a basic EPS plan.

• Offering partially sponsored prepaid plans is considered a high-value benefit.

• Atlas enables you to offer local healthcare coverage to all your contractors.

What does this mean for People Operations?

Even when it’s not legally required, offering healthcare access (or financial support for it) to your contractors sets you apart from companies that simply pay fees and ignore worker well-being.

Concrete risks of not offering adequate health benefits

Talking about healthcare isn’t just about “benefits.” In distributed teams—especially across Latin America—it’s also a matter of emotional safety and peace of mind.

Here are some specific risks of not designing a proper healthcare plan:

1. Perception of precariousness

Working for a company that doesn’t provide health coverage is often seen as total vulnerability. For many people, it signals that their employer doesn't care about their well-being.

2. High turnover rates

Top talent will quickly leave for opportunities that offer better, more secure healthcare coverage. When employees feel unprotected, retention suffers.

3. Increased internal costs

High employee turnover leads to increased costs in recruiting, onboarding, and training. Often, these expenses are much higher than what you would spend offering decent healthcare benefits from the start.

4. Productivity loss

When minor health issues go untreated due to a lack of coverage, employees may still show up to work—but operate at reduced capacity. This “presenteeism” (being present but unproductive) affects overall performance.

5. Loss of trust (harder to measure, but very real)

When a company offers poorly structured or confusing health benefits, the unspoken message is loud and clear:
“Your well-being is not a priority.” This erodes trust in leadership and impacts your reputation as an employer.

Specific vocabulary and cultural differences

Health insurance terms and policies

The language used in health insurance policies—and the policies themselves—can vary significantly from one country to another. Below are some of the most important terms to know when navigating health systems across LATAM:

Cultural differences

• In Argentina, the term medicina prepaga refers to premium, private healthcare. It’s widely understood as a high-end service.

• In Mexico, seguro médico usually refers to major medical insurance (SGMM), and is commonly associated with serious or costly health needs.

• In Colombia, medicina prepagada also implies premium, private healthcare and is used as a complement to the mandatory EPS system.

• The concept of obra social exists only in Argentina. These are union-managed health insurance programs, required for all formal employees.

• In Colombia, the equivalent is the contributory regime within the EPS system, but it’s not managed by unions.

• In Mexico, the equivalent is the IMSS, but it functions through a more centralized structure under the federal government.

• Mental health coverage is more normalized in Argentina than in Mexico or Colombia, though in all three countries, it’s still limited in basic plans.

• In Colombia, Law 1616 of 2013 promotes access to mental health services, but implementation varies depending on the region and provider.

  
  

Recommendations for communication across countries

• Use the term medicina prepaga and obra social when speaking with Argentine team members.

• Use seguro médico when communicating with Mexican collaborators.

• Use medicina prepagada or refer to the contributory regime with Colombian employees.

• Instead of using siniestralidad (a technical term), explain it as “claims ratio” if your audience includes international teams to avoid confusion.

• When designing global policies, remember: Colombia has both a contributory regime (for formal employees) and a subsidized regime (for vulnerable populations), which can shape how people perceive private insurance options.

  
  

Best practices for designing health plans for remote teams

Creating a valuable health benefit means more than just listing coverage options in a PDF. These are proven best practices used by successful distributed teams:

Flexibility

Allow team members to choose between multiple options based on their needs (for example: SGMM, prepaid healthcare, or enhanced EPS plans).

Simple communication

Don’t overload your team with technical jargon. Make sure to clearly explain:

• What the plan includes

• How to use it

• What to do in case of an emergency

Geographic coverage

In remote work setups, the plan must offer nationwide coverage, not just in the city where the person was hired.

Visible mental health support

Including access to psychological care as a core part of the plan (not just an optional extra) strengthens your commitment to overall well-being.

Regular updates

Review costs, coverage, and team satisfaction at least once a year to make sure the benefit stays relevant and effective.

And above all, make sure people can actually use it. A “premium” plan means nothing if employees can’t even get a doctor’s appointment. Accessibility matters.

Practical recommendations for designing and sustaining health benefits in remote teams

Designing a health plan is only the first step. Implementing it well, maintaining it over time, and adapting it to your team’s evolving needs is what truly makes the difference.

Below are practical strategies that actually work:

1. Don’t wing it: Plan healthcare benefits as part of your total compensation strategy

Health benefits shouldn’t be treated as a random add-on. They need to be integrated into your compensation package from day one and considered a core component of your value proposition.

This approach helps you:

• Align healthcare options with salary levels

• Ensure fairness across roles

• Reinforce consistent messaging about your company culture and values

2. The benefit needs to be tangible and usable

It’s not enough to just list what’s covered in an email. Employees need to know:

• How to access care

• Where can they go for treatment

• What to do in case of an emergency

The more concrete and accessible the benefit, the more valued it will be.

3. Clearly explain waiting periods and preexisting condition rules

Every insurance or prepaid healthcare plan includes:

• Waiting periods (carencias) before certain services become available

• Rules about preexisting conditions

If you don’t explain these details upfront, it can lead to frustration—and potentially larger conflicts—later on.

4. Adjust the benefit to match the team’s reality

If your remote team spans different countries, offering a rigid, one-size-fits-all global plan can do more harm than good.

Adapt coverage to local realities and provide flexibility when possible—for example, letting employees choose from a shortlist of vetted providers in their region.

5. Don’t overlook mental health and preventive care

Today’s employees increasingly expect more than just urgent care coverage. They’re looking for:

• Emotional and mental health support

• Preventive care programs

• Nutritional guidance and wellness coaching

A good practice: include at least a minimum number of free or subsidized therapy sessions per year.

6. Measure and listen: run annual satisfaction surveys on health benefits

Don’t assume that what worked last year still works today. Needs evolve. Costs fluctuate. Even something as simple as trouble getting appointments can erode the value of a plan.

Run regular feedback surveys to adjust benefits before people stop using or appreciating them.

7. Align your wellness messaging with reality

Saying “we prioritize health” means nothing if the insurance you offer is full of limitations and hard to use. Credibility in People Ops comes from consistency between your message and the real experience of your team.

Frequently asked questions about healthcare for remote teams in LATAM

What does it mean to offer a healthcare benefit to remote employees?

Offering a healthcare benefit means providing access to private medical coverage (insurance, prepaid plans, obra social, or a complementary plan) to workers who do not attend a physical office, adapted to the realities of their country of residence.

Is it mandatory to offer medical insurance to remote employees?

It’s not always mandatory, but it is highly recommended in order to strengthen your value proposition, attract talent, and reduce legal risks in certain countries.

What types of healthcare coverage are common in Mexico, Argentina, and Colombia?

• In Mexico, the most common private option is the Major Medical Expenses Insurance (SGMM).

• In Argentina, obras sociales and medicina prepaga are the typical forms of coverage.

• In Colombia, the healthcare system combines mandatory EPS coverage with complementary insurance options.

When is it appropriate to offer international insurance for remote teams?

It makes sense when your team is distributed across many countries, located in areas with weak public healthcare systems, or when you want to standardize the benefit for the entire company.

How does the lack of healthcare benefits affect talent retention?

Not providing adequate medical coverage can directly impact perceptions of stability and well-being, which increases the risk of voluntary turnover.

How can we continue building healthy remote teams?

Understanding the differences in each country’s healthcare system is only your first step. To really make a difference in your remote team’s experience, implement consistent, adapted, accessible, and locally relevant healthcare benefits.

If you're ready to design a global healthcare strategy aligned with your LATAM teams' realities, we're here to help.