Reduced Health Insurance Fees: Argentine Government Announces Rollback to Decade-Low Prices

The government has recently ordered a rollback in the prices of private health plans to December values, providing relief for affiliates as prepaid fees will have less of an impact on their total salary. This move 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 following this change, with compensation for overpayment amounting to 22% of the total salary.

According to a report by the Argentine Institute of Fiscal Analysis (Iaraf), private medicine expenditure accounted for an average of 62% of a formal salary’s purchasing capacity over the past decade. In 2013, prepaid health coverage consumed just 11% of the salary and had increased to 19% by 2019. However, since then, it has continued to rise and now accounts for 30% after the market was deregulated.

The seven companies affected by this official provision represent approximately three-quarters of all members. The Health Superintendence has presented a precautionary measure to reduce excessive increases above inflation but has not yet made a decision on whether or not to enforce it. Prepaid companies are expected to appeal this measure, but until a final decision is reached, customers will benefit from reduced fees if April inflation stays around 10%.