Prepaid health insurance companies adjust fees in July, putting pressure on the health care negotiations, which has the national government on edge.

Prepaid health insurance companies began sending out increase notifications this week for bills due in July. They did so after the official inflation figure of 1.5% was released. According to a survey by national media, some will receive increases above that percentage, while others will receive increases below it.

Swiss Medical—the country's second-largest prepaid health insurance company—reported a 1.4% increase for plans without co-payments and a 1.1% increase for those with co-payments, with a weighted average of nearly 1.25%. In the case of Sancor Salud , the announced increase is 1.2%, although a 2.2% increase will be applied in some specific areas, according to the letter sent to members.

Other prepaid health plans also confirmed their rates: Hospital Italiano will adjust its plan by 1.34%; Avalian by 1.75%; OSDE by 1.85% (expiring in August); Galeno by 1.9%; Omint by 1.95%; and Medicus will apply a 2.65% rate in July and has anticipated a 1.45% rate for August. Some companies have not yet officially announced the increase.

The differences are partly explained by the evolution of the healthcare price index. For the first time this year, this item surpassed the general CPI, reaching 2.7% in May, driven by the increase in medicines (2.3%) and prepaid medicine (3.1%). This gap was used by some firms to justify adjustments above general inflation.

In April, following thegovernment intervention, several prepaid health insurance companies had to reduce their planned increases. At that time, they were told that the reference value should be healthcare inflation, which was then below the general rate. With the May figures, that equation was reversed.

This scenario is causing concern among unions, especially in the healthcare collective bargaining agreement . Funding agencies warn that if prepaid health insurance companies don't significantly raise their fees, hospitals and clinics won't be able to reach a salary agreement that compensates for workers' loss of purchasing power.

The conflict is structural: providers' income depends largely on the money paid by prepaid health plans . If the fees aren't updated in line with inflation, the rates also remain frozen or rise below the level, making any salary adjustment difficult. The tension then shifts to the staff, who face delayed salaries and uncertain working conditions.

In this context, the government is seeking to contain the increases to alleviate the impact on members' pockets, but is facing pressure from unions and providers demanding a larger increase.