Panama Social Security: Panama’s President, José Raúl Mulino, recently announced his support for measures to address the serious issues facing the government-owned Social Security Fund (CSS). He emphasized that these measures are not aimed at privatizing the CSS.
In his first address to the nation since taking office on July 1, Mulino described the situation as a “powerful storm” and expressed concern that the actual conditions within the CSS might be worse than what current authorities have reported.
On October 1, the CSS will take a different course.
Mulino intends to address a number of issues, but not by privatizing social security, including the scarcity of medications, the length of time it takes to perform surgery, the “inhumane” treatment of users, the poor appointment scheduling system, the lack of supplies needed to perform operations, and the shortfall in the pension system.
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Once again, there will be no privatization of the Social Security Fund. Since the issues plaguing the system are particular, this issue is unavoidable, a fact that permits us to move forward on particular issues, he stated.
The president made no mention of the socially unacceptable parametric increases in fees and retirement age in his speech.
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President Mulino highlighted that health benefits are a major issue, with many complaints about the CSS’s inability to provide timely solutions in critical situations. Panamanians have reported “inhumane” service and delays in medication delivery due to problems with bidding, storage, distribution, and delivery.
According to QCostarica, Mulino mentioned that his government needs to verify a reported 20% shortage of medications. He also noted that only 44% of surgical and medical supplies are available in the state. With 19,350 surgeries delayed, he argued that it’s clear the system has collapsed, even without being an expert.
This implies that a greater than 50% of patients awaiting surgery will experience side effects or pass away before accessing the operating room. This recklessness almost seems like a crime, he remarked.
In this regard, he suggested that the Ministry of Health (Minsa) and the Social Security Fund be unified through the “Single Purchase” program as a first step toward unifying the purchasing system.
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In order to ensure that “they are not ghosts as they happen today” and that every patient receives quicker attention, he also suggested making changes to the medical appointment system, including “effective control” that would reduce cancellations and empty spaces.
President Mulino highlighted that the Disability, Old Age, and Death (IVM) program, which supports pensions, has serious structural problems. Finding practical solutions for this complex system is essential, given the large amounts of money involved.
One major issue is the $673 million deficit in one of the two pension systems (the defined benefit system). The International Labor Organization (ILO) reports that this system might soon run out of money. This problem has persisted because no previous government has managed to make the necessary reforms.
In 2005, the government of Martín Torrijos introduced a reform that combined the old Defined Benefit System (SEBD) with a new mixed system of individual savings. This change meant that people under 35 could choose to move to the new mixed system, while those over 35 stayed in the SEBD. Many analysts believe that this shift, leaving no contributors in the old system, is a major reason for the current issues.
