New 'Mega-Decree' Reforms Employee Health Benefits

Employers in Argentina should look closely at cost increases resulting from sweeping reforms that allow healthcare providers to adjust plans' premiums on their own terms. Previously, they were subject to statutory limits.

Employer Action Code: Act

President Javier Milei's new administration issued a Decree of Necessity and Urgency (DNU) No. 70/2023, introducing sweeping reforms to loosen rules governing the country's economy. Among other changes, the decree amends the legal framework for employee health benefits by enabling healthcare providers to join the regime for compulsory health entities (obras sociales). Employees receive medical care via membership in either a unionized or a non-unionized obra social (for unionized or non-unionized employees, respectively). Health coverage can be supplemented under private medical plans, via private healthcare providers.