Source: Inter-American Development Bank
IDB supports improvements for the sustainability of Colombia’s social security system
The US$161.8 million project will preserve the achievements in coverage, equality, and financial protection, in addition to improving the health of Colombians.
With the objective of supporting the improvement of the Colombian social security system’s sustainability, the Inter-American Development Bank (IDB) approved a US$161.8 million program. These will be destined to improve the management of the total cost of services and technologies in health, as well as the efficiency and coverage of the General Social Security System; and to increase health coverage for the immigrant population.
In Colombia, the social security system has made important structural advances. However, both COVID-19 and the sociodemographic transition facing the country, present challenges that threaten its economic sustainability and puts at risk the successes achieved in coverage and financial protection. Added to this, the country faces specific challenges to its social security system, such as limited financing for new technologies; a fragmented model of care; and a flow of migrants whose health needs are being attended through the emergency system and not the insurance.
The funds will be used for three components. The first component will seek to alleviate the pressures that affect health spending for the provision of services and technologies not financed with the per capita Payment Unit without affecting the quality of service provision. The second component is a model of comprehensive territorial action that allows improving the efficiency and effective coverage of the General Social Security System. The third component is coverage for insurance and services for the immigrant population, which will provide coverage to insure immigrants and coverage of services for the vulnerable immigrant population.
With this project it is expected to obtain savings for: services and technologies not financed with the Unit of per capita payment in contributory; number of departments / districts that are monitored for health promotion and maintenance program activities; and affiliated immigrant population.
The program is made up of a US$150 million loan that will have a repayment term of 14.7 years and a LIBOR interest rate; and a US$11.8 million of non-reimbursable resources aimed at improving access to health for the migrant population, of which US$9.6 million are contributed from the IDB migration facility and US$2.2 from the German government. This operation is the first under the Disbursement for Results modality in Colombia. In addition, this program is financed by an additional $150 million from the World Bank.
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.