BUENOS AIRES, May 8, 2025 (Reuters) — Thousands of retirees and pensioners surrounded Argentina's Congress building on Tuesday after the lower house postponed debate on President Javier Milei's bill to privatize the administration of PAMI, the state-run healthcare system for the elderly, marking the latest setback for the administration's healthcare overhaul and a vivid demonstration of the political power of Argentina's senior citizens.
The protest, organized by the National Federation of Retirees and Pensioners and supported by the CGT labor federation, drew an estimated 15,000 people to Plaza Congreso, many using walkers, wheelchairs, and mobility scooters. Chanting "PAMI is not for sale" and carrying photos of former President Juan Domingo Perón, the founder of Argentina's social security system, the crowd blocked traffic on Avenida Entre Ríos for six hours before dispersing peacefully at dusk.
Protesters said they had paid into the system for decades and feared that privatization would introduce co-pays they cannot afford on pensions that already fall below the poverty line.
The bill, which would transfer PAMI's administrative functions to a mixed public-private entity while maintaining universal coverage guarantees, lacks the votes to advance in the lower house after three provincial Peronist deputies defected from the government's coalition last week. The bill has been removed from the agenda indefinitely, according to congressional sources.
Health Minister Mario Russo defended the proposal in a heated committee hearing last Thursday, citing PAMI's accumulated debt of 4.2 trillion pesos ($4.6 billion), chronic mismanagement, and audit reports identifying over 12,000 phantom employees on its payroll — roughly 8% of its reported workforce.
"PAMI doesn't need more money — it needs different management," Russo told lawmakers, presenting a 200-page audit. "The current structure protects union bosses and political operators, not retirees. Under our proposal, every retiree keeps their coverage. The only change is who manages the system."
Beyond PAMI, Argentina's public hospital network faces acute funding stress. Federal transfers to provincial health systems have declined 18% in real terms under Milei's austerity program. The Hospital de Clínicas in Buenos Aires, one of Latin America's largest public hospitals with 1,200 beds, reported shortages of surgical gloves, syringes, and basic antibiotics in April, forcing postponement of 340 elective surgeries.
Hospital administrators said the operating budget is the same in nominal terms as 2023, but prices have doubled, making the situation one of systematic underfunding rather than mismanagement.
The administration announced a temporary emergency allocation of 150 billion pesos ($165 million) for public hospital supplies on Monday, but hospital administrators said the funds would cover only two months of basic needs and did not address salary shortfalls.
Polling data complicates the government's position. A May 1 survey by Management & Fit found that 64% of Argentines oppose PAMI privatization, with opposition running above 70% among voters over 60 — the demographic most likely to vote in October's midterms and the one that remembers the chaotic 1990s privatizations.
