Prepaid Medicine Fees to Increase Up to 40.67% in January Billing
Prepaid medicine companies in Argentina are set to send out the January billing in the coming days, and members are bracing for a significant increase in their fees. An estimated 300,000 members could see their fees rise by up to 32.38%, in addition to the 6.26% increase authorized by the Superintendency of Health. This results in an accumulated increase of 40.67% for some members.
During the last few months, some prepaid companies had been billing with the updated fee but specifying the difference as a “bonus.” With the new billing, these companies will show the new fee values without the previously designated bonus.
The January increase of 6.26% corresponds to the Health Cost Index, which is applied with a two-month lag. This means that the increase in January reflects the index as of November 30. It is expected that the percentage that will be applied in February will be announced at the end of the month.
The devaluation of the peso is expected to cause a significant jump in health costs. As a result, the health authorities need to evaluate various factors, including the indexing of quotas and the current tax benefits for the companies.
Estimates indicate that an average plan for a marriage without children could reach $150,000 per month, with those who derive contributions paying the difference between the plan amount and the derived contributions.
The new authorities of the Ministry of Health must also evaluate the regulation of the fees and increases, tax and pension benefits, and whether the special payment plan for health companies will continue. Decisions regarding tax reductions and rates for certain operations will also need to be made.
Members are urged to stay informed about the upcoming changes and potential financial implications as the billing for January is set to reflect the significant fee increases.