The government has recently ordered a rollback in the prices of private health plans to December values, which will provide relief for affiliates as prepaid fees will have less of an impact on their total salary. This comes after the deregulation of the sector with DNU 70/2023 in December, which led to Claudio Belocopitt resigning from the presidency of the Argentine Health Union (UAS). Medical coverage increased from 18% to 30% of the salary after this regulation.
According to a report by the Argentine Institute of Fiscal Analysis (Iaraf), private medicine expenditure accounts for a significant portion of an average formal salary. Over a period of 11 years, from 2013 to the present, Omint’s prepaid health coverage consumed an average of 62% of its purchasing power. In 2013, it represented 11% of the salary but increased to 19% by 2019 and now stands at 30% after deregulation.
The beneficiaries of this rollback are users of seven companies affected by the official provision, which represent around three-quarters (75%) of all members. However, it is not yet clear whether these companies will appeal against this measure or not. The Health Superintendence has presented a precautionary measure to return any excessive increase above inflation; however, no decision has been made yet.
To base their increases on inflation going forward, prepaid companies have been instructed by the government to use Indec’s CPI published for the next six months. If April inflation stays around 10%, customers affected by this rollback can expect their fees reduced despite potential appeals from prepaid companies. The resolution is already in effect until a firm decision is reached on whether or not these appeals will be granted.
