A federal judge in San Martín has ruled to suspend the application of a portion of a decree of necessity and urgency (DNU) that authorized the increase in fees for prepaid medicine companies. The ruling is in response to a lawsuit filed by a retiree who experienced a significant increase in his health plan fees, prompting the judge to grant a precautionary measure to annul the specific articles of the DNU.
The retiree, Rodolfo Francisco Vidal Quera Amengual, had experienced a more than 62% increase in his prepaid medicine service fees between December and January, leading him to file a lawsuit requesting the unconstitutionality and suspension of the relevant articles in the DNU.
Upon reviewing the case, Judge Elpidio Portocarrero Tezanos Pinto highlighted the modifications made to the regulatory framework of prepaid medicine companies and social works by the DNU, which effectively repealed certain requirements related to the authorization of fee increases. The judge emphasized the lack of supervision of the prepaid medicine companies and the absence of requirements to obtain authorization for fee increases, ultimately leading to a substantial increase in fees for the retiree.
As a result, the judge ruled to suspend the application of the challenged articles and required the prepaid medicine entity to readjust the fees corresponding to its healthcare plan, leaving the increased amounts moot until a final ruling is issued on the constitutionality of the regulations.
This ruling will halt the fee increases resulting from the DNU until a final decision is reached on the matter. The judge, who recently suspended part of the DNU related to football clubs, has now issued another significant ruling related to the DNU, setting a precedent for the government’s wide-reaching decrees.