ABSTRACT
Some countries have transferred the payment of contributions and care of the population to the private sector. At the beginning of the twentieth century, social security began to provide for retirement and old-age pensions without, addressing the health sector. Health insurance is the area of social security introduced by the Government of Uruguay. Governments in many countries, especially in Latin America, have been trying to limit the cost of social security. The state should confine itself to requiring each institution wishing to operate in the sector to provide clear information about the services it offers and to controlling the proper delivery of the services. A clear distinction must be drawn between insurance institutions that also provide medical care, as in the case of Uruguay, and those that merely act as insurance companies, contracting services with third parties. The state may indirectly subsidize nonprofit institutions through tax exemptions, while profit-making institutions must cover all their obligations, including taxation.
