Unpacking Colombia’s Health Scare as Sura Moves to Withdraw from the EPS System

This week there was a major health scare for Colombia. Grupo Sura’s health coverage arm has announced its withdrawal from the nation’s public health insurance plan — a move that would affect around five million members.

They are not the first company to do so amid claims by the private sector of underfunding from the government.

Above all, what we are experiencing is Colombia 2024 “101” — political polarization that is promising to bring the country to a halt.

There is an absolute mass to unpack here.

1. Historically, the EPS system (which Sura EPS is attempting to withdraw from) has provided coverage to over 90% of the population — and it has been widely praised over the years.

2. But the EPS providers are all up to their eyeballs in debt and have been for years.

3. Corruption and fraud have been seen across the system — and billions of dollars have disappeared over the years.

4. The minute that the EPSs have been stress-tested and questioned, they have bailed out. Ask yourself why.

4. President Gustavo Petro’s health reform tried to address these factors — but failed, as it sought too many other broad-reaching changes as well.

5. Congressional resistance was also driven by the lobby from those capitalizing from the fraud (as always).

To add all this, former President Álvaro Uribe’s party, the Democratic Center, is now looking to the courts to block ALL of the Petro reform processes — this at a moment when the pension reform is threatening to be passed. On top of this, Petro, in a country now awash with “fake news,” has had to deny that he wishes to close the Congress. Uribe’s move has nothing to do with the reforms but more the ongoing criminal investigation into his time in power.

That’s where we are right now in Colombia. Such is the political heat/stupidity/stubbornness/nonsense (insert more terms as appropriate) right now. The news of Sura’s withdrawal from the EPS system broke on Tuesday — and was already missing from the headlines by Thursday.

Perhaps if Petro and Uribe, the absolute pantomime villains of the piece, were dispatched on the next rover trip to Mars, Colombia might be able to get on with building a future.

Meantime, of more concern is a slowing economy, which has led to a 10.3% decline in tax revenues over the first four months of 2024. The current shortfall is around $2.85 billion USD. That is a huge chunk of change for a government that is being asked to ramp up payments to the health system, as well as other infrastructure projects.

All this with ratings agencies and other overseas entities urging cautious spending amidst positive comments on Petro’s attempts to balance the books.

For now, that is your rundown! Be grateful if you are overseas reading about Colombia, and not living it.

If I had hair, it would be falling out!

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