Parliament approves extension of intervention in Casmu amid 'extremely complex' economic situation

Uruguay's Parliament has granted a two-year extension to the state intervention in Casmu, a major mutual health insurance provider, acknowledging the institution's "extremely complex" financial situation. The decision, approved by the Chamber of Representatives after Senate concurrence, continues a period of increased state control over the mutualist, initially implemented due to severe financial difficulties.

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The state control is preceptivo and the intervention allows to visualize the maintenance, the quality of care, the improvement of management and operational savings.

The intervention, which began under the previous government of Luis Lacalle Pou and continues under the current administration of Yamandú Orsi, aims to stabilize Casmu. However, the parliamentary approval did not include all the executive branch's requests. Specifically, a proposed $120 million allocation from the state guarantee fund for mutualists was postponed. Opposition parties conditioned their vote on receiving more detailed information about the provider's financial status.

Lawmakers from the ruling coalition and opposition parties met to discuss the matter. Luis Gallo, a representative for the Frente Amplio, described Casmu's situation as "extremely complex" and suggested that the institution's financial recovery, particularly its net worth, could take "decades." He defended the state's continued involvement, arguing that state control is "preceptive" and allows for oversight of care quality, management improvements, and operational savings. Gallo stressed that extending the intervention is necessary due to the mutualist's size, encompassing many users and workers, to ensure continuity and quality of healthcare services without disrupting the broader health system.

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The situation of Casmu evidences the multiple failures of the National Integrated Health System.

José Luis Satdjian of the Partido Nacional criticized the current government for submitting the bill shortly before the intervention's original deadline. He also pointed to broader systemic issues within Uruguay's National Integrated Health System, particularly the "multiple failures" stemming from the transfer of public health fund management (Fonasa) to private entities. Satdjian argued that these private institutions have excessive freedom in managing debt and credit, sometimes engaging with companies linked to their own officials or directors.

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The provider will be viable only when it can regularize its patrimonial situation, which will surely take decades.