Effective Freezing of Prepaid Medicine Quotas for Economically Strained Families: 90-day Agreement

2023-09-02 22:27:26
The freezing will be effective to the extent that the families declare that they do not have the economic capacity that allows them to pay the quota with the current adjustment scheme of the health cost index.

Finally, following a series of meetings and a negotiation in which the tax compensation that the government will give them in return has yet to be agreed upon, the prepaid medicine companies agreed to keep the quotas without increases for ninety days for family groups with incomes of no more than $2 million gross per month.

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The freezing, however, will be effective to the extent that the families declare that they do not have the economic capacity that allows them to meet the quota with the current adjustment scheme of the health cost index. According to the letter that is being negotiated, the companies will accept that a family group “does not have economic capacity” and will keep its quota frozen if its members do not own two or more properties or three or more vehicles, except for households where there is at least one person. Cohabitant with Unique Certificate of Disability (CUD). People who have aircraft or boats or are holders of shares “that show full economic capacity” will be excluded from the freeze.

In this way, the sector finally agreed to what was announced last Sunday by the Minister of Economy, Sergio Massa, who had included the freezing of quotas among the twelve measures with which, he said, the Government seeks to “compensate” for the effects of the devaluation arranged on August 14, one day following the STEP. In fact, the minister celebrated the agreement in a post on the X network (ex Twitter).

Massa’s post in X, regarding the agreement

The prepaid medicine companies also said that the fee for the month of September was already invoiced in the last fortnight of August, with which the agreement is effective as of September.

The agreement between the government and the prepaid has as a counterpart on the part of the State a series of tax benefits, which still remain to be known.

The representative of the prepaid in the negotiation was the Argentine Health Union (UAS), a third degree entity that brings together the majority of the Chambers and Federations that in turn group entities that provide health services to more than 70% of the Argentines.

The freeze announced by Massa last Sunday had taken the health sector by surprise and caused concern (Illustrative image Infobae)

Some of these groups are the Civil Association of Integrated Medical Activities, that of Clinics, Sanatoriums and Private Hospitals of the Argentine Republic, that of Private Medicine Entities, that of Clinics and Sanatoriums of Rosario, that of Non-profit Community and Individual Hospitals. Chambers such as Argentina for Dental Services Companies, Argentina for Biochemical Analysis Laboratories, Social Security, Outpatient Diagnosis and Treatment Entities, and Private Medicine Entities, among others.

The freeze announced by Massa last Sunday had taken the health sector by surprise and caused concern. Funders already had authorized increases and faced and still face difficulties due to lack of access to inputs, especially imported ones, and their first reaction was to consider implementing co-payments or resorting to judicial measures.

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Massa had announced: “We have decided to suspend the increase in prepaid medicine for the next 90 days, for all those households whose income does not exceed $2 million”, justifying the extent to which “the effort made by the workers and the State is seen reflected in health care that does not affect the pocket of the worker”, he added.

Services such as Ambulance are covered by companies grouped in the Associations and Chambers grouped in the Argentine Health Union, which negotiated with the government (EFE/Juan Ignacio Roncoroni)

From the private sector, the first response was that the suspension of increases did not solve and even aggravated the problem of financing the health system, as they told Infobae from one of the most important prepaid in the country, in addition to highlighting that the increases in medical supplies had gone up to 50% in the last month.

Verifying the rapid impact that the devaluation ordered on Monday the 14th had on prices and the inflation rate, whose monthly figure consultants and economists estimate that in August it would be close to 11%, in addition to leaving a significant “drag effect” on the index September, which INDEC will publish days before the first round of the presidential election, the government sought to “compensate” the impact with the measures announced by Massa last Sunday and tries to contain the inflationary momentum with a series of freezes and price agreements sectorial.

In this regard, it has already froze fuel prices for 90 days and suspended the increase that was planned for train and bus fares, a line in which the announcement of the 90-day freeze on prepaid fees was registered.

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