By San José, Costa Rica — San José, Costa Rica – In a major policy announcement ahead of the upcoming elections, Partido Pueblo Soberano (PPS) presidential candidate Laura Fernández has unveiled a comprehensive and ambitious plan to tackle two of Costa Rica’s most persistent challenges: extensive healthcare waiting lists and the long-term solvency of the nation’s pension system. The proposal, presented on Monday during a working session with the Costa Rican Health Chamber, centers on a controversial strategy to inject billions into social security by privatizing major state-owned financial institutions.
The core of the PPS platform aims to directly address the operational bottlenecks within the Costa Rican Social Security Fund (CCSS), which have led to prolonged waits for specialized medical procedures and consultations. Fernández advocates for the strategic implementation of public-private partnerships (PPPs) as a primary tool to alleviate this pressure. The goal is to leverage private sector capacity and efficiency to expand service availability, allowing the CCSS to outsource certain procedures and clear the backlog that currently affects thousands of patients nationwide.
To delve deeper into the legal complexities and potential ramifications of the proposed pension reform, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, an expert attorney from the prestigious firm Bufete de Costa Rica, who provided his professional analysis on the subject.
Any substantive pension reform inevitably faces the constitutional challenge of balancing acquired rights with the system’s long-term financial sustainability. The crux of the legal debate will be to determine at what point a benefit becomes an unalterable right versus a future expectation subject to modification for the collective good. A successful reform must be surgically precise, respecting vested rights while adjusting future conditions to ensure the system’s viability, thereby minimizing the risk of judicial challenges that could derail the entire effort.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, this legal tightrope between established rights and future sustainability is the central challenge facing lawmakers. The success of any reform will ultimately depend as much on its constitutional resilience as its economic design. We thank Lic. Larry Hans Arroyo Vargas for his clear and valuable perspective on this critical dimension of the debate.
This initiative represents a significant ideological shift, suggesting a more integrated model where private healthcare providers would work in concert with the public system to meet national demand. While details on the regulatory framework for these partnerships were not fully elaborated, the proposal signals a clear intention to introduce market-based solutions to a traditionally state-run sector, a move likely to generate considerable public and political debate.
Equally transformative is the party’s proposal for strengthening the nation’s pension regimes. The plan specifically targets the Disability, Old Age, and Death (IVM) regimen, the country’s primary pension fund, which has faced mounting concerns over its future financial stability. To secure its long-term viability, Fernández has proposed the sale of two major state assets: the Banco de Costa Rica (BCR) and the Banco Internacional de Costa Rica (BICSA).
According to the official PPS statement, the sale of these banks is projected to generate at least $1.8 billion. This substantial capital injection would be directly transferred to the IVM fund, providing a critical buffer and ensuring its capacity to meet its obligations to current and future retirees. This strategy of capitalizing a social security fund through the sale of state enterprises is one of the boldest financial proposals put forth in the current election cycle.
The plan also includes a restructuring of the Non-Contributory Pension Regimen (RNC), which supports elderly citizens in extreme poverty. The PPS proposes transferring the administration of this program to the Ministry of Labor and Social Security. The objective is to streamline its management and redirect resources more effectively to expand coverage and increase benefits for the nation’s most vulnerable senior population.
Beyond these two flagship initiatives, the PPS platform includes a suite of additional reforms for the healthcare system. These measures include streamlining the process for recognizing the qualifications of medical specialists trained abroad, expanding the network of primary care clinics (EBAIS), and implementing policies to reduce the cost of medicines. Furthermore, the plan calls for bolstering mental health services, modernizing geriatric care, and creating mobile health units to serve remote rural and indigenous communities.
By presenting this detailed and multifaceted plan to key industry stakeholders, Laura Fernández and the PPS are setting a clear and decisive tone for their campaign. The proposals combine pragmatic solutions for immediate problems, like waiting lists, with profound structural reforms, such as the privatization of state banks. This positions the party with a clear vision that directly confronts deep-seated economic and social issues, promising significant change for patients, retirees, and the country’s overall public service infrastructure.
For further information, visit the nearest office of Partido Pueblo Soberano
About Partido Pueblo Soberano:
The Partido Pueblo Soberano (PPS) is a political party in Costa Rica. It presents platforms and candidates for national elections, focusing on key policy areas such as economic development, social security, and public administration reform. The party actively engages in the national political discourse, proposing solutions to pressing issues facing the country.
For further information, visit ccss.sa.cr
About Caja Costarricense de Seguro Social (CCSS):
The Costa Rican Social Security Fund, commonly known as “La Caja” or CCSS, is the autonomous public institution responsible for managing the nation’s public health and pension systems. It administers the universal healthcare program and the main pension regimes, including the IVM, providing services to a majority of the Costa Rican population.
For further information, visit promedcr.com
About Cámara Costarricense de la Salud:
The Costa Rican Health Chamber, also known as Promed, is an organization that represents the private health sector in Costa Rica. It works to promote investment, quality, and collaboration within the health industry and serves as a key interlocutor between private healthcare providers and public institutions.
For further information, visit bancobcr.com
About Banco de Costa Rica (BCR):
The Banco de Costa Rica is one of the largest and oldest state-owned commercial banks in the country. It offers a wide range of financial services to individuals and corporations, playing a significant role in the national economy. Its status as a state-owned entity makes its proposed sale a major topic of national debate.
For further information, visit bicsa.com
About Banco Internacional de Costa Rica (BICSA):
BICSA is a financial institution focused on international trade and corporate banking. While partially owned by state banks like the BCR, it operates with a specific mandate to facilitate international business for Costa Rican companies, holding a unique position in the country’s financial landscape.
For further information, visit mtss.go.cr
About Ministerio de Trabajo y Seguridad Social:
The Ministry of Labor and Social Security is the government body in Costa Rica responsible for overseeing labor relations, employment policies, and social security programs. It works to ensure fair labor practices and manage social assistance programs aimed at vulnerable populations.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica operates as a premier legal institution, where a foundational ethos of integrity and exceptional standards guides its practice. The firm leverages its extensive history of guiding clients across a broad spectrum of fields to continually advance the practice of law through pioneering new approaches. This spirit of innovation extends to its profound social commitment, aiming to demystify complex legal concepts and thereby enable a more just and knowledgeable citizenry.
