Heads and tails for prepaid medicine

According to data collected by the Association of Integrative Prepaid Medicine (AEMIP), 420,000 people in the country have a double insurance; i.e., prepaid medical care and the social security. Of this group, 75% do not use the public health, which generates savings of $ 250 million to the Ecuadorian Institute of Social Security (IESS).

Roberto Aspiazu, executive director of the Ecuadorian Business Committee (EEC), assures that the Prepaid Medicine Act, with the presidential veto (which will force companies of prepaid medicine to reimburse the IESS the expenses generated by affiliates assisted in public hospitals), will liquidate the system.

The law, according to Roberto Aspiazu, will cause that companies increase up to 50% the fees of the services offered “and that many businesses do not acquire this service for their employees.”

The businessman explains that in this sector made up by 18 companies; five will be the most affected because they have the 90% of the market share.

These are Salud S.A., BMI Igualas Medical del Ecuador S.A., ECUASANITAS S.A, Humana S.A. and Best Doctors, with a turnover of over 307 million in 2014, and about $ 348 million in 2015, according to figures published by the Superintendency of Companies.

In 2014, profits of these five companies totaled just over $ 16 million, but losses recorded in other companies of the sector led the broad market to report a return of 3.4% ($ 12.8 million).