At the beginning of this, in the month of December 2019, a retraction of the price was observed that averaged 6.1%. During this stage, between December 2019 and September 2020, periods without variations (as has occurred during the months of January, February, April and May) alternated with increases in the remaining months. The increase reached 14.7% that is, 1.4% cumulative monthly.
In a second stage, from September 2020 to October 2021, the monthly variations increased, adding 65.9%, that is, 4% cumulative monthly.
What Happens to Drugs Covered by PAMI
According to official data from INDEC, the coverage for members and affiliates of PAMI reaches 4,410,000 people over 60 years of age, with about 7 million older adults in Argentina. In 2020, PAMI launched free coverage for a wide range of active components. Thanks to an agreement with the pharmaceutical industry, the prices of medicines for retirees and pensioners suffered an increase of almost 6% in March, remaining frozen until October 31. Therefore, for the consulting firm, “prices remained frozen for nine of the past ten months, only showing an increase in the month of April and monthly increases in November 2020” and concluded: “The price increase between December 2019 and October 2021 reaches 56.1%, 2% cumulative monthly“.
Evolution of minimum retirement and drug prices
Between April 2018 and November 2019, it is observed that while the minimum retirement increased almost 70%, medicines increased 160%. “The loss of purchasing power of the minimum retirement measured in medicines for the period April 2018 to November 2019 was nothing more and nothing less than 35%“said CEPA.
In the following period, even with the impact of the pandemic, the evolution was in reverse. While the minimum retirement increased between points 100.2% (between November 2019 and October 2021), the evolution of drugs most consumed by older adults only increased 90.3%. In other words, even with the increase in drug prices mentioned above, in the second stage, retirements beat the evolution of the prices of the most consumed drugs. “
Likewise, if the minimum retirement is considered, which increased between points 100.2% (November 2019 to October 2021) and the evolution of the PAMI PVP, the variation reached only 56.1%.
The exchange rate variable
In its report, CEPA reaffirmed the participation of imported inputs in the production process. However, it establishes a caveat: between April 2021 and October 2021, the exchange rate shows a variation of 6.8% while the increase in drug prices moves 3.5 times more than the rate of depreciation of the Central Bank.
“Far from presenting a direct association with the evolution of the exchange rate, a wide dissociation is observed with the evolution of drug prices, reaching a significant gap of more than 20 pp in the period (17.4%)”, he concluded the study center.
Source From: Ambito
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