Major Medical Insurance: The Benefit Your Team Is Looking For

Investing in human capital well-being generates a positive impact on organizational culture, but it can also translate into tax savings and lower employee turnover.

One of the most valued benefits is major medical insurance, as it protects both employees and, in some cases, their families, helping build a preventive and resilient culture.

What Is Major Medical Insurance?

Major medical insurance is designed to cover costs arising from illnesses or accidents that require specialized medical care, such as hospitalization, surgery, treatments, and more. Depending on the plan, coverage may also include hospital services, therapies, and medications. The goal is to protect the policyholder’s financial assets by reducing the economic impact that a health emergency may generate.

Major medical insurance includes coverage that varies according to the type of plan purchased, but the most common benefits are:

• Hospitalization
• Surgeries
• Specialist consultations
• Laboratory tests
• Accident-related care, etc.

In general, pre-existing conditions are not covered, and some treatments are subject to a waiting period.

These types of insurance policies operate under two key concepts: the deductible, which is the amount the insured person pays before the insurance company begins covering expenses, and coinsurance, which is the percentage of the remaining cost that the insured person must also pay until the limit established in the policy is reached. In addition, there may be direct payment arrangements with the hospital or a reimbursement scheme, under which the insured pays first and then requests reimbursement from the insurer.

What Are the Benefits of Offering Major Medical Insurance to Employees?

Providing major medical insurance, in addition to protecting employee health, offers several advantages for companies and contributes to building high-performing teams:

Greater Talent Attraction and Retention

More professionals are evaluating employee benefits before joining a company, which is why major medical insurance is highly valued. In some organizations, it may even form part of mandatory benefits according to company policies or hiring schemes, as it provides financial support in the event of accidents or illnesses.

In addition to facilitating the recruitment of specialized talent, this benefit reduces employee turnover and increases team engagement.

When employees perceive that their organization invests in their well-being, they are more likely to develop a long-term employment relationship and greater motivation to achieve business goals. For many candidates, this benefit may even carry more weight when comparing a job offer against other employment conditions.

Reduced Absenteeism

According to AON's report, in 2025 the main causes of absenteeism were unexcused absences (51%), followed by general illnesses (29%).

When major medical insurance is provided, employees can receive timely care and, under many policies, 24/7 medical assistance, reducing both the economic and operational impact of health issues. This availability is often complemented by medical guidance to address urgent concerns or questions outside regular working hours.

Tax-Deductible Benefits

Major medical insurance policies may be considered social welfare expenses and can be tax-deductible if they meet the requirements established under the Income Tax Law (ISR).

Offering this type of insurance as part of an employee benefits package is also a strategic decision that improves productivity and generates savings for businesses.

Employee Benefits vs. Company Benefits

Does Major Medical Insurance Help Retain Talent?

Yes. It is one of the most valued above-the-law benefits. As part of a comprehensive compensation strategy, it can strengthen engagement, improve job satisfaction, and contribute to employee retention.

It becomes a differentiator in a competitive market because:

Well-Being Influences the Decision to Stay

When an employee has financial support to deal with an illness, they experience greater financial and personal peace of mind. Financial uncertainty is reduced, allowing people to focus on their work without constant concerns about health emergencies.

In addition, if coverage includes a spouse or children, the perceived value of the benefit increases considerably. For many employees, protecting their family's health is just as important as their compensation, making this type of benefit an influential factor in the decision to remain with a company.

The Benefit Strengthens Engagement

Employees value more than just salary; they want organizations to care about their well-being. When a company invests in benefits such as major medical insurance, it sends the message that people are strategic assets rather than merely operational resources.

This perception strengthens employees' sense of belonging and can lead to higher levels of engagement, job satisfaction, and willingness to contribute to achieving business objectives.

It Is a Recruiting Differentiator

In industries where demand for specialized talent is high, benefits that exceed legal requirements often become a decisive factor in accepting a job offer. A candidate may receive offers with similar salaries but choose the one that provides a more comprehensive benefits package, especially if it includes private healthcare coverage. Likewise, these professionals often value companies that compare coverage options, costs, and exclusions before selecting a plan.

Retention Depends on a Comprehensive Strategy

Although this benefit provides significant value, it alone does not guarantee that an employee will remain with the organization. Talent retention is the result of multiple factors, including a positive work environment, professional growth opportunities, competitive compensation structures, and more.

Within this broader strategy, major medical insurance serves as a benefit that enhances the employee experience and reinforces the perception that the company cares about employee development and quality of life.

Which Companies Should Offer Major Medical Insurance?

Any company can offer major medical insurance as part of its compensation and benefits strategy. Although it is commonly associated with large corporations, it also represents a competitive advantage for small and medium-sized businesses seeking to attract talent. One of the most visible benefits for employees is access to a broad network of private hospitals in Mexico.

Major medical insurance is not exclusive to large organizations. In a market where expectations continue to evolve, companies of all sizes must increasingly incorporate benefits that help them differentiate themselves and build strong, committed teams.

However, there are certain scenarios in which this benefit can have an even greater impact.

Companies with High Employee Turnover

When an organization struggles to retain talent, strengthening employee benefits becomes a tool for increasing job satisfaction and improving employee retention.

Companies Competing for Specialized Talent

Industries such as technology, manufacturing, engineering, healthcare, logistics, consulting, and financial services often compete for highly qualified professionals. In these cases, offering benefits beyond legal requirements can make the difference between attracting or losing a candidate.

Growing Companies

Organizations undergoing expansion need to hire talent quickly without neglecting the employee experience. As a company grows, it is important to understand concepts such as the premium, which refers to the recurring cost required to keep the policy active. When evaluating options, companies should also review the medical fee schedule, which establishes the maximum amount the insurer will pay for each procedure, as well as the applicable care conditions.

Including major medical insurance from the early stages of growth helps build a strong organizational culture and work environment while laying the foundation for a sustainable benefits strategy as the workforce expands. In addition, the implementation process often includes policy enrollment, insurer notification, and the application of coverage terms and conditions.

Major Medical Insurance: An Investment in Employee Well-Being and Business Growth

Today, major medical insurance is a strategic tool that benefits both employees and organizations. It protects employees' financial assets in the event of illness, strengthens the company's value proposition, improves the employee experience, and contributes to attracting and retaining talent.

However, the true impact of this benefit is achieved when it forms part of a comprehensive Human Capital strategy. End-to-end talent management, from recruitment to retention and development, is essential to ensure these initiatives address the actual needs of both the company and its workforce.

Ultimately, investing in employee well-being not only reflects a company’s commitment to its people; it also strengthens productivity, competitiveness, and long-term sustainability. When individuals have the support they need to care for their own health and that of their families, they can focus on what matters most: contributing their talent and growing alongside the organization.