The Ministry of Economy is working on a complaint against prepaid companies. It will present this Wednesday before the National Commission for the Defense of Competition (CNDC).
Almost 70% of the market is concentrated in six entities, according to the cartelization complaint presented by the Civic Coalition. Who are the businessmen behind the companies and associations that dominate this industry and what audience each one targets? The Government wants to roll back the increases in plans that reach 154% so far in 2024: 40% in January, 27% in February, 20% in March and up to 19% in April. The "cartelization" to which the Government refers has to do with the alleged agreement between the private medicine companies with the Health Union for "attacking free competition." The complaint is similar to those managed by the UAS, which is the main player in the market. Swiss Medical is the second private prepaid medicine provider in terms of number of members. The Government estimated that Swiss Medical received US$13 million in subsidies collected in the pandemic through the ATP and REPRO mechanisms. The third player in the industry is Galeno Life, with 8.3%. In fourth place is Sancor Salud, with 7.8%. The group also includes Galeno ART, its occupational risk insurer, and Galeno Life. It was born as a mutual in 1973 under the umbrella of the cooperative Sunchales, Santa Fe, which is now in crisis. It is now run by Jorge Aufiero, who is the son of the former president of Argentina, Jorge A. Aufero. In 2018, it acquired Compaa Financiera Argentina (CFA), which belonged to Banco Galicia. It currently provides coverage to more than 750,000 members of its insurance arm, Galeno. It also owns La Trinidad Sanatoriums.