The Colombian government will pay private health insurers 820 billion pesos ($215 million) of funds owed since last year for high-cost treatments and medicines, according to a letter by the health ministry.
In the letter to the inspector general’s office, the ministry said it requested that the finance ministry recognize the liabilities that will be added to the nation’s debt. The announcement comes after the government watchdog last week requested the health ministry provide information on when pending funds to the insurers, known as entidades promotoras de salud, would be made.
Private health insurers have warned that their financial viability is at risk, pointing to insufficient government transfers and delayed payments from President Gustavo Petro’s administration. Through ACEMI, the industry group that represents the companies, they have highlighted the importance of a key funding formula ahead of an end-of-year deadline.
The health ministry sets the so-called UPC, which determines how much the government transfers to insurers per user of the health care system, each year in December. If the government opts not to set a specific level, the UPC increases in line with consumer price index inflation, which is forecast to end the year just below 10%.
At a minimum, ACEMI has said an increase of 6 or 7 percentage points plus inflation is needed to stop losses from piling up. In its letter to the government watchdog, the ministry said there is “no evidence” that transfers per user have been insufficient. It didn’t say by how much it would increase the UPC for 2024 or when it would make a decision.
The finance ministry didn’t reply to requests for comment on whether it would need to issue additional peso bonds to cover the liabilities. ACEMI also didn’t reply to a request for comment.
Photograph: National Capitol building at Plaza Bolivar in Bogota, Colombia, on Thursday, July 28, 2022. Photo credit: Nathalia Angarita/Bloomberg
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