Recently, we received new data from the Social Debts Observatory of UCA regarding poverty levels. The statistics reveal a disturbing trend: poverty rates increased in December and January compared to the third quarter of 2023. In the third quarter, 44.7% of the population was considered poor. This figure rose to 49.5% in December and reached a staggering 57.4% in January, translating to 27 million Argentines living in poverty. Additionally, extreme poverty (indigence) climbed from 9.6% in the third quarter to 14.2% in December and further to 15% in January.
The Observatory forecasts that poverty will continue to rise, potentially reaching around 60% in February and March. This surge is largely due to delayed pension payments and stagnant wages, which have not kept pace with rising service costs and the overall cost of living. Such alarming figures make it difficult to predict how various sectors will respond.
Particular attention is being given to the public healthcare sector. Early in the new government’s term, private health insurers sought to increase membership fees due to financial strains in providing adequate care. The government responded by allowing them to raise fees, leading to significant hikes between December and January. As a result, many people abandoned private coverage, increasing the burden on public health services, which are typically under-resourced in terms of personnel and technology.
Public healthcare facilities, especially those in Buenos Aires (CABA), are now experiencing an influx of patients, many of whom come from the surrounding Greater Buenos Aires area. The situation was highlighted in a video where a CABA hospital doctor explains to waiting patients, a majority from Greater Buenos Aires, why it is safer and easier for them to seek care in CABA despite long waits.
The national government has largely focused on issues related to private health insurance and social security funds, neglecting that the bulk of healthcare is now being provided by the public sector. Provinces and municipalities, already financially strained, are further impacted by the reduction of national funds, including subsidies for transportation and education incentives, amplifying their inability to support public health services adequately.
Over 50% of Argentines, reliant solely on public healthcare, are left vulnerable. Despite ongoing discussions in Congress and media about health policies, the Ministry of Health has been notably silent.
In 2015, Aldo Neri proposed organizing consortiums at the provincial and major urban levels to pool equipment and human resources, potentially what might be considered provincial health insurance. These consortiums could help minimize commercial competition, reduce redundancy, and regulate service quality consistently across both public and private sectors. However, current policies do not seem to follow Neri’s model. The challenge remains on how to provide healthcare for 60% of the population while upholding the constitutional right to health.
Source: “Health and Social Policy” in Can we have equitable health policy?* published by Pacto Argentino por la Inclusión Social-PAIS, Editorial Femeba 2017.
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