The keys to the controversy between Muface and the Government: the insurers still do not respond

The situation of the General Mutuality of State Civil Officials (MUFACE) generates greater uncertainty every day. Insurers have until November 5 to sit at the negotiating table and respond to the offer made by the Government. This proposal represents an increase in annual premiums for insurers of 17.12% compared to the 14% that the executive initially offered.

The Council of Ministers approved this tender for the new agreement for the years 2025 and 2026, and the Minister for Digital Transformation, Óscar López, assured that it is “the biggest rise in history”. However, this offer may be insufficient for mutual insurerssince they would continue with losses.

What is MUFACE?

It is a public body dependent on the Ministry for Digital Transformation and Public Function in charge of providing health care to the group of public officials in Spain.

Being dependent on the Government, MUFACE has been demanding for several months a negotiation in which an increase in the premium for insurers is proposed, since they currently have losses of more than 200 million euros each year. Specifically, MUFACE’s idea was to achieve a 24% increase in the premium to be able to assume the costs which involves serving more than 1.5 million officials, while the insurers requested a 40% increase.

Faced with these demands, the Executive has launched the 17.12% proposal, so now Adeslas, DKV and Asisa have the last word to decide if they accept, or if on the contrary they launch a counteroffer improving current conditions.

Insurers allege losses

According to the mutual societies, the Government’s proposal is “totally insufficient”. The premium initially requested was 40%, which means that the 17.12% offered is very far from the idea of ​​the insurers, who report annual losses of 200 million euros.

From the ASPE employers’ association they assure that MUFACE saves the state more than 890 million euros. A savings that can now disappear due to the incompatibility of mutual insurance companies to meet expenses.

An insurer refuses to collaborate with MUFACE

Waiting to know the decision of the insurers linked to MUFACE, Mapfre has ruled out its return to mutual insurance. As reported by Efe, the insurer valued being able to sign a new contract if the conditions were optimal, but observing that this is not going to be the case, Mapfre is not considering returning.

It must be remembered that this mutual It was already linked to MUFACE in 2009.

What can happen if there is no agreement?

The agreement signed by the Government and insurers is valid until January 1, 2025. From that moment on, the mutual insurance company will not have to provide services to civil servants. In the event that the entity and the Executive do not reach an agreement, MUFACE could disappear.

This disappearance would lead to serious problems for public health. Its elimination would mean that, as of January 1, more than 1.5 million civil servants move to the public system, generating a much larger collapse than currently exists. If public healthcare is already highly stressed due to poor quality and long waiting lists, the disappearance of Muface would cause these problems to become even more serious.

Furthermore, since the Independent Trade Union Center of Civil Servants (CSIF) have announced mobilizations in case of not reaching an agreement.