Obra social, literally "social work" but functioning as "health insurance," is Argentina's unique system of union-administered health plans. Each industry union operates its own obra social, and employees are automatically enrolled in the health plan associated with their sector's union. This system covers approximately 18 million Argentinians.
Funding and Contributions
Obras sociales are funded through mandatory contributions: employees contribute 3% of their gross salary, and employers contribute 6%. These contributions are deducted from payroll and remitted to the corresponding obra social. Higher-earning employees may opt for a private prepaid health plan (prepaga) and redirect their contributions, paying any difference out of pocket.
Coverage and Quality
All obras sociales must provide a minimum coverage package called the PMO (Programa Médico Obligatorio), which includes primary care, hospitalization, surgery, maternity, mental health, and prescription drugs. Coverage quality varies significantly between obras sociales — some large union health plans offer excellent care, while smaller ones may have limited provider networks.
EOR Relevance
An EOR in Argentina manages obra social enrollment based on the applicable collective bargaining agreement, processes monthly contributions, and assists employees with switching to a different obra social or upgrading to a prepaid health plan. The EOR navigates the complex relationship between union membership and health coverage.