Brazil regulator unveils price mechanism for individual health plans

Brazilian health insurance regulator ANS unveiled a new price adjustment methodology for individual health insurance plans.

"The new individual plans readjustment Index (IRPI) is based on the variation of individual plan operators' medical expenses and the general inflation of the economy, reflecting the reality of this segment," ANS said in a statement.

The new methodology will be applied gradually throughout 2019, based on the annual expiration date of contracts.

Price adjustments of individual plans are currently based on the readjustments of group plans. In 2018, the price hike of such plans reached 10%, more than double annual inflation, generating much controversy and protests from consumer protection groups.

Individual plans represent a smaller part of the overall market since most plans are sold to companies for their employees.