Economy Tough negotiation between the Government and the private health companies - Infobae

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Tough negotiation between the Government and the prepaid companies: there will be a refund of what was overcharged in 12 installments with interest and free rates since July - Infobae​

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Dura negociación entre el Gobierno y las prepagas: habrá devolución de lo que se cobró de más en 12 cuotas con interés y tarifas libres desde julio

El acta se firmó en la madrugada de este martes. La compañías, que según las autoridades exigieron que se anule la denuncia por cartelización, dijeron que es “una señal tremenda” que se tenga que devolver dinero que ya invirtieron

www.infobae.com

May 28, 2024

The minutes were signed in the early hours of this Tuesday. The companies, which according to the authorities demanded that the complaint for cartelization be annulled, said that it is “a tremendous sign” that they have to return money that they already invested.

By Sebastian Catalano


In addition, according to the agreement, companies will reincorporate into their plans those who have been discharged due to non-payment

After tense negotiations that lasted until dawn , the Government and representatives of prepaid medicine companies reached an agreement brought about by judicial mediation in which the private firms agreed:

• Repay in twelve installments with interest what, according to the Government, they overcharged from December onwards. The update of this refund will be made according to the monthly interest rate of the fixed terms of Banco Nación (today, half of inflation).
• Starting in July, meanwhile, the quotas will be adjusted freely. In the first negotiations that date was in October.
• They promised to reincorporate into their plans those who have been discharged due to non-payment.

According to sources close to the negotiations, the signing of the agreement only came at 1:30 in the morning this Tuesday. A key point of dissent between the parties that took more than six hours to reach an agreement – always according to the Government – is that the investigation of a possible cartelization will continue in the National Commission for the Defense of Competition. The seven “big ones” in the sector wanted the investigation that the CNDC is carrying out to not continue. In this context, the Secretary of Commerce, Pablo Lavigne , was summoned to the federal civil and commercial court of Juan Rafael Stinco




One of the pages of the minutes that were signed this morning

Companies, especially large ones, are not satisfied, despite the fact that the return of the extra charge will be made in a year, with an interest lower than inflation, and that they will have released the prices earlier than expected. At least one of them called the agreement “a mess” and assured that it was signed because not doing so would have meant “even bigger hassle.”


“The most incredible thing about this film is that a supposedly pro-market and pro-capitalism government ended up making them return money to the private sector. They made socialism with someone else's money. It's unusual. They killed the private sector to show an enemy of the middle class and cover up the increases in all public services,” they said from one of the companies that has the most clients.


“That companies have to return money that they have already spent and/or invested is a tremendous sign. Whether they have the RIGI or not. And they filed a complaint of cartelization when there are more than 40 companies that were summoned by the judge. I don't know of an oligopolistic market with more than 40 companies,” highlighted a representative of another company.


The agreement was signed by Gabriel Osorio , head of the Superintendence of Health Services (SSS); about 40 companies; the Secretary of Commerce, Pablo Lavigne ; and associations that bring together companies in the sector. These are the central points of the minutes accessed by Infobae :

• “The prepaid medicine companies agree to the refund of amounts charged in excess of the CPI for the months of January, February, March, April and May 2024, taking for each of the months the CPI corresponding to the previous month. Each month the difference between the percentage of increase made and what would have corresponded to the CPI of the previous month will be calculated. From the result of each month, the amount of difference, if any, will be calculated until the month of June adjusted by the Banco Nación Passive Rate. Starting in July 2024, the consolidated amounts will be returned in 12 monthly and consecutive installments adjusted by the BNA Passive Rate,” reads the first point of the agreement.
• “The Prepaid Medicine Companies agree to reinstate under equal conditions and without any restriction or penalty those who have been terminated due to non-payment due to the increases that are the subject of this process,” is the second point reached by the parties.
• "Starting with the quota corresponding to the month of July 2024, the Affiliates' quotas will be adjusted freely, according to cost structures and due actuarial calculation of each of the companies," they finally agreed, among the main points.

Last December, with the deregulatory decree 70/2023 by Javier Milei, the Government announced and promoted the liberalization of prices for the sector and the end of the intermediation of union works in business. But when the impact of the prepaid increases on the CPI was seen, Minister Luis Caputo accused the sector of having declared war on the middle class. The tension generated the departure of Claudio Belocopitt , owner of Swiss Medical, from the presidency of the Argentine Health Union (UAS), the entity that brings together all companies in the country's private health sector. The UAS today is chaired by Hugo Magonza , president of the Civil Association of Integrated Medical Entities (Acami) and general director of Cemic.

The issue was formally channeled by the National Commission for the Defense of Competition, dependent on the Secretariat of Commerce of the Ministry of Economy, based on a complaint from deputies of the Civic Coalition. That is the cause that according to the authorities is continuing. In parallel, Judge Stinco, after a protection from the SSS, ordered increases for the CPI and the refund that was confirmed this morning.