Obras Sociale vs. Prepaid Insurance (Day 9)

Both prepaid insurance companies and obras sociales serve an important role in Argentina’s healthcare delivery, however, each serves different portions of the population in distinct manners. One commonality between the two is providing access to medical treatment through a network of hospitals, clinics, and physicians. Both types of systems also help consumers by reducing the out-of-pocket costs associated with receiving health-related services and can potentially provide quicker access and superior facilities when compared to many crowded and under resourced public hospitals. However, although both systems address similar issues, there are significant differences between them. First, all employees who work for employers that participate in obras sociales must contribute (through mandatory payroll deductions) to fund these programs. Workers are enrolled into specific obras sociale programs based upon their sectors. As a result, the quality of care provided by one obras sociale program may be far more than another due to the wealthier or more powerful status of the participating unions. On the contrary, prepaid insurance companies are private corporations which provide voluntary health insurance options to consumers. Typically, people enroll in prepaid insurance plans in order to shorten waiting lines at overcrowded outpatient departments or to seek care from specialist physicians in superior quality private hospitals. Plans offered through prepaid insurance providers are generally more expensive and available primarily to middle to upper income members of society. Second, works socials were developed to provide comprehensive health coverage to employed persons throughout the nation, whereas prepaid insurance is highly dependent on an individual’s financial capability to afford monthly premiums. Therefore, both prepaid insurance and obra sociale programs aim to provide a means for consumers to receive health services, however, obra sociale programs are heavily reliant on an employee’s employer and participation in a labor unions, whereas prepaid insurance operates more like a business offering a variety of consumer chosen premium levels and services.

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