By means of Decrees No. 170/2024 and 171/2024 (the “Decrees”), the President incorporated new changes to the Social Security and Prepaid Medical Entities option regime, in addition to the amendments already introduced through Decree No. 70/2023.
The Decrees introduce the right to freedom of choice for those affiliated to Health Insurance Entities (Obras Sociales) comprised in section 1 of Law No. 26,660, as well as the possibility for Prepaid Medical Entities (Empresas de Medicina Prepagas) operating under Law No. 26,682 to participate in the Social Security system. To do so, Prepaid Medical Entities to be registered in accordance with section 6 of Law No. 26,660. The right to freedom of choice may be exercised in the terms and procedures to be established by the enforcement authority, in this case the Health Services Superintendence. It is also important to note that Decree 70/2023 has established that the minimum term of stay under affiliation of a Health Insurance Entity will be determined by the enforcement authority, but in no case will exceed one year.
These new changes allow people who are initiating a new employment relationship to opt between joining a Health Insurance Entity or a Prepaid Medical Entity from the beginning.
Decree No. 171/2024 introduces substantial changes to Decree No. 576/93, the latter regulating Law No. 26,660, in order to allow for Prepaid Medical Entities to join the Social Security system. Among these changes, it should be noted that both Health Insurance Entities and Prepaid Medical Entities must comply as minimum with the current Mandatory Medical Program and the “Basic Services for integral habilitation and rehabilitation of People with Disabilities” comprised under Law No. 24,901.
