ABSTRACT
This chapter analyzes the coverage, costs and financing of the medical care program of the Peruvian Institute of Social Security (IPSS) in the context of Peru's economic recession, which has substantially reduced the institute's revenue base. The IPSS medical care program began to operate at a deficit even before the Peruvian economy slid into recession, and continued to do so through 1983. Under the IPSS medical care program, contributors are entitled to outpatient medical care, hospitalization, dentistry, certain basic medicines, rehabilitation services, prostheses, and orthopedic aids, as well as sick pay and a funeral allowance. IPSS medical care coverage by economic sector is more difficult to assess. The sectors with the highest coverage are utilities, financial services and insurance, mining, transportation, and manufacturing, while agriculture, trade, and construction are only minimally covered. The most extravagant medical care program expenditures for contracted services have probably been payments for medical care abroad.
