A prepaid company ceases to exist
Asistencia Mdica Norte SA has ceased to exist, as it was removed from the National Registry of Prepaid Medicine Entities (Rnemp) and has transferred the majority of its portfolio of affiliates. The company had requested registration in the registry several years ago, but in a surprising decision, it chose to cancel its license and transfer its client portfolio to the Argentine Mutual Association (Medycin).
The Superintendence of Health Services (SSS) confirmed that there are no pending claims or regulatory impediments against the entity, after an exhaustive analysis and several inspections. The SSS is responsible for keeping the National Registry updated and granting authorization to operate to the subjects who are in a position to register in the registry.
A total of 357 active users still need to be migrated from Asistencia Mdica Norte SA to the Asociacin Mutual Argentina (Medycin). Meanwhile, the Summary Coordination of the Litigation Affairs Sub-Management reported that there are no summary procedures in progress and/or sanctions pending compliance that have the entity as the active subject of a non-compliance.
The movement reflects the changing dynamics of the private health market in Argentina, with the consolidation of entities and the transfer of portfolios in a now deregulated sector. The Superintendence of Health Services reported that the prepaid does not register impediments to its withdrawal.
According to the Argentine Health Union (UAS), the gap between the income received by companies and inflation is large. Prepaid payments increased by 137% in the last year compared to a 211% price increase, and for 2012-2023 it was 11,000% versus 7,000%. Looking ahead to 2024, the UAS anticipates a 40% average quota update for January and an expected inflation of between 25% and 30%.
The withdrawal of Asistencia Mdica Norte SA is not only an administrative measure, but also a reflection of the situation in the sector. The industry is facing significant pricing challenges, and the future of private health market dynamics remains uncertain.