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Argentina Dissolves Military Health Fund and Limits Automatic Staff Transfers

The decree directs a selective transfer of workers to avoid a projected budget and operational shortfall while the Defense Ministry assumes obligations for nontransferred personnel.

Overview

  • The government published Decree 1286/2026 on Wednesday that dissolves the Instituto de Obra Social de las Fuerzas Armadas (IOSFA) and launches its liquidation under an administrator appointed by the Ministry of Defense.
  • Accountant Gonzalo Secchi was named liquidator and given a deadline of February 4, 2027 to complete the process while the new Obra Social de las Fuerzas Armadas (OSFA) board will identify which IOSFA posts are needed and transfer only those workers.
  • The Executive says it will use Treasury funds to clear roughly ARS 210,000 million in IOSFA debt through agreements with about 2,000 providers and has begun making partial payments and temporary pacts to restore urgent medical services.
  • Unions including ATE warn the reorganization could leave about 1,200–1,450 workers outside the new structure and have staged protests to demand job protections and the preservation of IOSFA pharmacies and local services.
  • The decree requires Gendarmería and Prefectura staff serving at IOSFA to return to their forces and cites an 8% cap on administrative spending as the main reason for cutting transfers, a change that will affect beneficiary access, provider relationships and future staffing decisions by OSFA.