Senate archives health reform bill for second time

Colombia's Senate Seventh Commission archived the health reform bill with eight votes in favor and five against, on the last day of the ordinary legislative session. This marks the second sinking of the initiative pushed by President Gustavo Petro's government. Reactions highlight concerns over the system's financial sustainability.

On December 16, 2025, Colombia's Senate Seventh Commission resumed the third debate on the health reform but archived it for the second consecutive time with a vote of eight in favor of archiving and five against. The government had attempted to revive the bill, which aims to redistribute EPS responsibilities and grant more powers to Adres, but faced hurdles over funding doubts.

Acemi's president, Ana María Vesga, reacted by stating that 'the Government failed to demonstrate the project's financial sustainability.' She added that after months of debate, no joint vision emerged among system actors, and stressed the need for immediate solutions like setting the UPC for 2026. Senator Norma Hurtado criticized the bill as underfunded, warning it would cause 'loss of lives, absence of treatments and medications'.

Interior Minister Armando Benedetti denounced on X the delay until the last day, accusing foul play 'with the health of Colombians in a dirty and cheap way.' Finance Minister Germán Ávila explained the resources: $112 trillion annually, including $44 trillion from the nation, $37.5 trillion from contributions, and $2.3 trillion from health taxes. However, Anif warned of risks in contributions due to over 50% labor informality and in taxes from reduced consumption.

The Health Ministry regretted the sinking, stating it blocks necessary changes and upholds a failed system that precarizes workers and affects remote regions. An appeal filed by Senator Fabián Díaz, signed by five lawmakers including Wilson Arias and Martha Peralta, seeks to revive the process in another commission or extraordinary sessions next year.

Parallel controversy arose over the 2026 UPC adjustment. Guilds like Andi and Acemi demand 15.6% to 17.3% increases, but the Health Ministry, based on EPS data, questions these, attributing the crisis to mismanagement: $2.3 trillion paid to deceased and drug overcosts. It accuses EPS of historical waste and failing to pay employer contributions since 2014, with the state covering an extra $32 trillion.

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Empty chamber of Colombia's Congress Fourth Commission, suspended Financing Law debate due to lack of quorum.
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Financing law debate suspended due to lack of quorum

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The debate on Colombia's Financing Law in Congress was suspended until Tuesday due to lack of quorum in the Fourth Commission of the House of Representatives. The bill aims to raise $16.3 trillion to fund a 2026 budget of $546.9 trillion, but faces opposition and potential cuts if not approved. President Gustavo Petro warned of a possible default, while experts like Anif dismiss that risk.

The Constitutional Court ordered the Attorney General's Office to investigate Health Minister Guillermo Alfonso Jaramillo for failing to comply with the order to adjust the UPC for 2024 and 2025. The court declared the 5.3% increase for 2025 insufficient and opened a contempt proceeding. Experts estimate a $10.3 trillion deficit in the health system.

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Following Constitutional Court orders, including contempt proceedings against Health Minister Guillermo Alfonso Jaramillo for prior UPC shortfalls, the Colombian government set the Unidad de Pago por Capitación (UPC) increase at 12.94% for 2026, applicable to contributory and subsidized health regimes. This adjustment raises the assurance budget from $89.8 trillion to over $101.3 trillion, aiming to close regime gaps.

The Senate's finance commission adopted a series of amendments to the 2026 budget draft on Monday, November 24, aiming for lower corporate taxes and more savings while keeping the deficit target at 4.7% of GDP. Amid the blockage in the National Assembly, Prime Minister Sébastien Lecornu called for votes on absolute priorities such as defense and agriculture. The Senate also rejected government-proposed restrictions on sick leave.

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The Chamber of Deputies approved and dispatched the public sector readjustment bill to the Senate, including a gradual 3.4% salary increase. However, it rejected the controversial 'tie-down norms' pushed by the government, which plans to reintroduce them in the Upper House. Opposition lawmakers criticized the lack of clear funding for part of the fiscal cost.

In the latest on Chile's record 129-article Public Sector Readjustment Law, submitted last week, Congress approved 36 articles on Wednesday despite backlash over 100+ miscellaneous add-ons. Labor Minister Boccardo defends the measures as essential updates, while critics decry the 'denatured omnibus' bill lacking funding clarity. Average 2.8% salary hike carries US$1.7 billion cost.

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French lawmakers began examining the 2026 social security financing bill on October 27, 2025, amid tensions over suspending the pension reform and drastic savings measures. A government amendment increasing the surtax on large companies was adopted, while the Zucman tax debate was postponed. Discussions are set to be contentious with a projected deficit of 17.5 billion euros.

 

 

 

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