The Civic Coalition filed a complaint with the National Commission for the Defense of Competition for potential cartelization conduct in the prepaid medicine services market by the companies that make up the Argentine Health Union (UAS). This alleged conduct was aimed at increasing prices for users and suppliers. The complaint comes after the prepaid medicine companies uniformly applied a 40 percent increase as soon as deregulation of quotas was initiated.
The head of UAS, Claudio Belocopitt, who also owns Swiss Medical and presides over the business entity, announced that there would be a 30% adjustment in February and a further 10% increase in March, cumulatively representing a 100 percent increase in three months.
In response, a new judicial ruling was issued against the application of these increases in prepaid fees, under decree 70/2023, which triggered deregulation of the pricing regime in the market. The court order applies to the injured user who made the complaint, including a user whose child has disabilities and requires multiple therapies. The judge ruled that the price increases could make it difficult for the user to continue with the services provided by their healthcare provider.
This precautionary measure, which concerns the unconstitutional nature of the decree in relation to health services, was also ordered in another case against the Italian Benevolent Society. The judge found that the price increases violated the basic rights of the affected users, including the right to health and life.
The Civic Coalition alleged that the actions of the main companies in the prepaid medicine market constitute “the anti-competitive practice” defined in the law on the defense of competition. They provided evidence of circulars from various companies as well as media reports of meetings to coordinate price increases, setting estimated values and contracting policies with suppliers.
Commenting on the situation, Claudio Boada, director of the Union of Users and Consumers, highlighted the impact of these price increases on individual members and retirees. He pointed out that these increases are unsustainable for many people and may lead to the elimination of individual members and the absorption of social works.
The complaint is calling for an investigation into the UAS’s behavior to determine compliance with CNDC standards for business chambers. It also raises concerns about the potential impact of these practices on the accessibility of healthcare services for individuals and retirees with prepaid plans.