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Argentina Moves to Split IOSFA Into Separate Military and Security Health Funds

Officials say severe irregularities drove the decision to pursue a clean separation.

Overview

  • Defense Minister Carlos Presti will present the final plan to Chief of Cabinet Manuel Adorni on Friday, with implementation dependent on executive approval.
  • If cleared, President Javier Milei would formalize the reorganization by decree, with an announcement targeted for Tuesday.
  • The plan would place Policía Federal and PSA coverage under Security Minister Alejandra Monteoliva, while a new independent fund would serve the Armed Forces under an active officer with Hospital Militar experience.
  • Talks with Economy Minister Luis Caputo seek Treasury support to cover part of an estimated 200 billion‑peso debt that has produced months‑long delays and cancellations for more than 600,000 affiliates.
  • Placement of Gendarmería and Prefectura affiliates remains under review, as unions warn of severe local impacts in communities such as Punta Alta.