Health Reform Costs Millionaire in First Year
News Context
At a glance
- The Minister of Finance, Germán Ávila, presented to Congress the official figures on the cost of implementing the ongoing health reform driven by the government of Gustavo Petro.
- In 2026, the expense is projected to be $112.6 billion, representing 6.3% of the gross domestic product (GDP).
- The Ministry clarified that these figures represent a "redistribution of the resources that the country already has," not new taxes.
Health Reform Costs in Colombia: A Fiscal Overview
The Minister of Finance, Germán Ávila, presented to Congress the official figures on the cost of implementing the ongoing health reform driven by the government of Gustavo Petro.
In 2026, the expense is projected to be $112.6 billion, representing 6.3% of the gross domestic product (GDP). Projections indicate this will rise to $114.8 billion in 2027 and $191.7 billion by 2036, equivalent to 7.2% of GDP.
Read also: Health Reform: Petro makes a strong warning to EPS.
How will the budget be distributed?
The budget will be organized into three groups:
- Direct expenses: $105 billion in 2026 for primary, medium, and high complexity care, hospital networks, economic benefits, scholarships, migrant care, and debt sanitation.
- Indirect expenses: $2 billion over the first five years to support the sanitation of state health companies.
- Management expenses: $1.9 billion for management and supervision of the new model.
Where will the financing come from?
Funding will come from:
- nation’s contribution: Average annual growth of 8.1%.
- General System of Health Participations: Growth of 4.3% per year.
- Affiliate contributions: Projected growth of 2.8% annually.
- Healthy taxes: Revenue from sugary drinks and ultraprocessed foods ($2.9 billion in 2026, $4 billion in 2036).
- IVA social: 0.5% of this tax ($2 billion in 2026, $2.7 billion in 2036).
The Ministry clarified that these figures represent a “redistribution of the resources that the country already has,” not new taxes.
