Bill 423.

Enviado a subcomisión para analisis
  • TypeBill
  • 423
  • FiledSeptember 1, 2025

Summary.

The bill establishes a prohibition throughout the national territory: public funds could not be used in any manner to finance private health insurance policies for public officials. It would apply to every state institution, including the Executive, Legislative and Judicial Branches, autonomous and semi autonomous entities, state owned enterprises, and any other entity that administers public funds. The rule addresses the source of the financing and the benefit provided, regardless of the type of institution administering the money.

The stated objectives include eliminating the inequality that the bill associates with publicly financed private insurance for officials when most of the population depends exclusively on the public health system. The bill also calls for efficient, effective and transparent use of state resources. It prioritizes investment in the hospital network, primary care centers and medicine supplies. It connects these aims to the right to health on equal and equitable terms for all inhabitants of the Republic of Panama (República de Panamá), and to improved coverage, quality of care and disease prevention.

The express prohibition would cover every public official, irrespective of rank, position, employment regime or the nature of the institution to which the person belongs. No official could receive private health insurance benefits paid for directly or indirectly with state funds. To govern future arrangements, the bill prohibits the conclusion of new contracts, agreements or administrative measures providing for the use of public funds to pay for such insurance once the proposed law enters into force.

For existing arrangements, contracts in force at the time of promulgation would remain effective only until their expiry. They could not be extended, renewed or amended to lengthen their duration. The bill also requires the transfer of resources previously allocated to private health insurance payments to the budgets of the Ministry of Health (Ministerio de Salud) and the Social Security Fund (Caja de Seguro Social). The specified purposes of that transfer are to strengthen medical care, hospital infrastructure and the supply of medicines.

The Executive Branch (Órgano Ejecutivo) would issue regulations for the proposed law within no more than ninety (90) calendar days after promulgation. The bill provides that the law would take effect upon promulgation and would have no retroactive effect. Its provisions concern the Ministry of Health and the Social Security Fund, institutions and state owned enterprises that administer public resources, public officials, health care providers and the private health insurance sector.

What it proposes.

  • Use of public funds for private health insurance for public officials.
  • New agreements and the duration of existing agreements financing that insurance.
  • Budgetary transfer of resources previously allocated to those payments.

Who it would affect.

  • Public officials.
  • Branches of government, autonomous and semi autonomous entities, and state owned enterprises.
  • Other entities administering public funds.

Key points.

  1. Prohibits public funding of private health insurance policies for officials throughout the national territory.Art. 1
  2. Extends the prohibition to the branches of government and every entity administering public funds.Art. 2
  3. Calls for redirecting resources to hospitals, primary care, medicines, coverage and prevention.Art. 3
  4. Bars any official from receiving the benefit when financed directly or indirectly with state funds.Art. 4
  5. Prohibits new agreements and limits existing contracts to their expiry, without extension, renewal or amendment that lengthens their duration.Art. 5
  6. Requires the transfer of funds previously allocated to that insurance to the budgets of the Ministry of Health and the Social Security Fund.Art. 6
  7. Assigns rulemaking to the Executive Branch within no more than ninety (90) calendar days after promulgation.Art. 7
  8. Provides for entry into force upon promulgation, without retroactive effect.Art. 8