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Politics Luis Caputo announced that the Government will fine prepaid companies that do not roll back the increases - Infobae

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Luis Caputo announced that the Government will fine prepaid companies that do not roll back the increases - Infobae​


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May 01, 2024

The Minister of Economy announced that on Thursday they will “clarify” the formula for the increases and that a channel will be opened to report those companies that fail to comply with the agreement.

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The Minister of Economy of Argentina, Luis Caputo, in an archive photograph. EFE/David Fernández

The dispute between the prepaid companies and the National Government added a new chapter. This Tuesday, the Minister of Economy, Luis Caputo , announced that a complaint channel will be opened and those medical companies that do not roll back the excessive increases that the Executive Branch itself allowed with the liberalization of prices will be fined.


The official expressed himself last night through his . “The prepaid companies did not comply, the invoices arrived and it is not what was agreed upon ,” they asked the minister.


In this framework, Caputo announced that on Thursday “we are going to clarify the formula” for increases, “so there are no doubts.” “We are going to open a channel for complaints for invoices that do not comply with what is regulated and agreed upon ,” he reported and added: “In addition, a fine (a very large percentage of the annual billing) will be applied in case of non-compliance . ”


In this way, with a new intervention by the State, the Government seeks to remedy the damage that it itself generated. Weeks ago, prepaid medicine companies were denounced by the authorities of Javier Milei 's management , who first authorized them to freely increase their prices, without any control, and then they were accused of excessive increases and "cartelization." They also want the Court to order that they return to their clients that “extra” increase, above inflation, that they received in the first months of the year.


In this context, the main companies in the industry have already begun to announce reductions in their next invoices. This is the case of Swiss Medical, which will drop 22.22% compared to the figure it had announced in March . A similar movement will be carried out by OSDE, the largest prepaid company in the country (it is a social work, strictly speaking) and this week, another of the "large" companies in the sector announced its resignations. This is Galen, which will have a reduction of 26.78 percent in May, it was specified in an Infobae note .


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When asked if the increases could not have been carried out in another way – more staggered, for example – the companies assure that they followed the guidelines of the Government and the Superintendency of Health Services (SSS), the regulator of the sector. And they charge against their “natural enemy”: the drug manufacturers. “The Government could have called the entire sector to a dialogue table to define how we were going to continue. But to all, not to a part”, one of the large companies highlighted in off the record . Infobae spoke with several of the market leaders and none of them wanted to identify themselves. To face the crisis, they ask to modify the Mandatory Medical Plan, an agency that approves medications and allows special coverage and co-payments.

With his sights set on the vote in the Senate, Caputo met with a Peronist governor after the half-sanction of the Bases Law in Deputies​

After the first victory of the National Government in Congress, with the half-sanction of the Bases Law and the fiscal package in Deputies, the initiatives must go through the Senate for final sanction. There, the role played by the governors will be key, especially the Peronists with whom the Executive Branch must refine the negotiations.

In this framework, the Minister of Economy held a meeting with the provincial leader of Catamarca, Raúl Jalil, who was re-elected last year representing Unión por la Patria.


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Luis Caputo with Raúl Jalil

“Today we shared a very good work talk with the governor of Catamarca, Raúl Jalil and team. Large projects, especially in mining and the textile industry. We talked about the best way to help the Nation to promote these investments ,” Caputo expressed in his X account along with an image that portrayed the meeting.

The statement by the head of the Treasury Palace is in line with the Minister of the Interior, Guillermo Francos, a key player in the negotiations with the opposition, who yesterday revealed that he has “talked a lot” with Jalil and suggested that “deregulation” and “ The investment opportunity” that the sanction of the law would generate would be important for Catamarca in the exploitation of mining.
 

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