Paraguay’s IPS admits it lacks funds to cover most medicines

Paraguay’s Social Security Institute, known as IPS, says it does not have enough money to guarantee the purchase of the 506 medicines in its official formulary. The disclosure from its Supply and Logistics Management helps explain why insured patients continue to encounter empty pharmacies.

Cecilia Rodríguez, the institute’s supply and logistics manager, said IPS would need an estimated $386 million a year to keep its medical facilities and pharmacy network fully stocked. Its approved budget for 2026 amounts to only $234 million, creating a 68% gap between the institute’s needs and its authorized purchasing funds.

The shortfall is made worse by debts owed to pharmaceutical suppliers from previous administrations. At the same time, spending is concentrated in a small group of costly medicines used to treat complex conditions. A technical review found that 80% of available medicine funds goes to 104 products, just 20% of the formulary.

IPS uses 95% of its funds to cover 234 medicines, leaving only a small operating margin for the other 286 products. The financial pressure forces the institute to decide which medicines to buy and which to postpone amid low coverage and worsening shortages.