Senate approves state guarantee for Casmu, adds new demands for mutual health institutions

Uruguay's Senate has approved access to a state guarantee fund for the mutual health institution Casmu, authorizing approximately $120 million in financial support. This move is part of a legislative effort to prevent Casmu, the country's third-largest mutualist organization, from facing receivership.

The approved bill, sent by the Executive Branch a month ago, underwent significant revisions after facing opposition criticism. Initially comprising four points, the bill was restructured into three articles for discussion. One article, concerning new demands from the Executive Branch for institutions receiving state guarantees, drew particular criticism from the opposition.

The Senate unanimously passed the first article, which grants Casmu access to a new guarantee fund – the seventh to date. This access is contingent upon the Executive Branch, through the Ministry of Public Health (MSP) and the Ministry of Economy (MEF), approving Casmu's restructuring plans. The project also temporarily exempts Casmu from the obligation to provide real or other guarantees to the fund when not feasible.

The second article mandates that restructuring plans must include economic-financial, administrative, functional, and governance reforms, as determined by regulations. This article received unanimous approval. The third article, supported only by the Frente Amplio, introduces stricter requirements for mutualist institutions seeking state guarantees. It mandates that individuals in leadership, administration, and executive roles must demonstrate suitability, experience, honorability, integrity, and a lack of conflicts of interest or legal disqualifications. Furthermore, the designation of key personnel within Casmu and other mutualist organizations will require prior "no objection" from the MSP and MEF within 30 days, with any objections needing to be well-founded.