Access to private health insurance is low. This year, the upward trend will continue.
During the first wave of pandemicthroughout 2020, the cost average of one medical appointment it skyrocketed from $25 to over $52. Also, any kind of attention with some level of hospitalization it reached a range of between $2,500 and more than $30,000 in the private health network.
In 2021, the costs from medical care in Ecuadoraccording to the Global Survey of Medical Trends, prepared by Willis Towers Watson, had a increase average additional 12%.
That increase is the fifth highest within Latin America. Last year, the country most affected by the increase in prices was Venezuela with 250%. In second place is Argentina with a rise of almost 61%. In third and fourth place were Puerto Rico and Nicaragua with 18% and 15% respectively.
According to the Willis Towers Watson report, the spread of the COVID-19 put more pressure on private health system in Ecuador, as a direct consequence of the public system has great deficiencies and a reduced capacity to respond to crises.
In addition, there are structural problems in the country, such as a shortage of specialists, limited competition in the market, High costs of imported medicines and supplies, among other factors that drive the increase in prices and tariffs.
Access to exams and medicines
Lorena López, head of household and entrepreneur, commented that, in addition to the expenses incremental directly related to covid, in these almost two years of pandemic has had to pay out of pocket to cover tests and treatments for other ailments.
“In many cases, the public system does not have the bare minimum and has to do things outside. This is a reality that I already lived through eight years ago with my mother’s illness, but that deepened with the pandemic,” he said.
On average, almost half of the medical expenses Annual payments come out of people’s limited budgets, regardless of whether or not they are affiliated with the social Security.
The upward trend will continue
By 2022, it is projected that costs from medical care rise, on average, around 8.90%. That percentage consolidates Ecuador as the fifth with the highest increase at the regional level.
The situation is complicated because the hospital system of the Ecuadorian Social Security Institute (IESS), along the bottom of Health, has a growing financial deficit and decreased coverage. This without taking into account the millionaire state debt, that it still does not have a payment schedule and that it further reduces the scope of state services.
This void is not filled with private insurance, which can reduce the cost of medical care by between 10% and 30%. Even before the pandemic, as of December 2019, only 10% of employed people in the country had this type of insurance.
The economic crisis, derived from the spread of the COVID-19, caused the percentage of coverage of the private insurance from Health remains stagnant, or, in the worst case, has been reduced by around 1%.
The panorama has ‘hit’ the companies in the sector, which have reduced their assets and total issued premiums.
However, the biggest impact is on the pockets of older citizens. Thus, the monthly fee charged to them increased, in most cases, from one average of more than 60%.
Lucía Carrión, 70 years old, explained that the insurance companywith which you have your health policy, notified you at the beginning of 2021 that the monthly payment went from $80 to $123.
“The cost had a significant increase because most of us who pay for group insurance are over 65 years old in my family. The Health represents a high expense each year,” he said. (JS)
