An Analysis of DNU 70/2023 and its Impact on Prepaid Medicine: DEUCO’s Defense of User and Consumer Rights

2024-01-08 21:31:21

There are many appeals for protection and requests for annulment against the Decree of Necessity and Urgency (DNU) 70/2023: many sectors and branches of industrial, commercial and business activity consider that it affects or limits rights. One of the presentations is the Defense of the Rights of Users and Consumers (DEUCO).

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The presentation of the association of users and consumers emphasizes that the presidential DNU annuls article 5, section G, of Law No. 26,682 on Prepaid Medicine. This article established that increases in sector fees were determined by the Superintendency of Health Services after carrying out a cost study.

In the letter, DEUCO emphasizes that, after the repeal of the article, “the prepaid medicine companies agreed to apply an average increase of 40 percent as of January 1,” to which is added that “they have already notified a new increase in the 30 percent for February and another increase of the 25 percent proposed for March.”

In addition, the sector announced that “starting in April they would apply a monthly adjustment according to the increase in the Consumer Price Index.” In this way, a member who, in January, paid a fee of 20,000 pesos, will have to end up paying 45,500 in March, with an increase that “will be 127.5 percent in three months.”

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“The elimination of regulation allows prepaid medicine companies to set the fee with absolute freedom. For this reason, we request the annulment of DNU 70/2023,” closes the statement, which refers to the increases in the area included in health until April, since it was not specified what the adjustments would be beyond the short term.

The DNU and prepaid medicine

The Necessity and Urgency Decree 70/2023 introduces modifications to the regulatory framework for prepaid medicine, liberalizing the prices of their fees and allowing members to directly redirect their health contributions to companies. Among the recitals, it stands out that the liberalization of prices will allow “increasing the competitiveness of the system.”

Thus, the modification to Law No. 26,682 removes the power of the State to “review the values ​​of the quotas and their modifications” and eliminates the permanent commission that regulated prepaid payments, which had representatives from the Ministry of Health and Economy, as well as than the Permanent Concertation Council.

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