by Rod Hughes

Ever wonder why, with an estimated 80% of residents in Costa Rica covered for health insurance by Social Security (Caja), that government cannot hire sufficient doctors and nurses to adequately treat hospital patients? The answer: some 39,000 “businessmen” have ducked their responsibility to pay the employer’s share of the insurance premiums, according to an article in the Spanish-language daily La Nacion.

The Caja admits that an estimated ¢58 billion colones (figure it out: about ¢500 colones per dollar) are considered uncollectable. In some cases, the businesses are bankrupt but in the majority they are fraud artists. And in some cases, it does no good to go after some with embargoes or liens, according to José Rojas, chief of Caja collections. Their buildings, property, vehicles or machinery are already mortgaged by the bank up to the hilt.

In the case of outright fraud, Rojas continues, the fraud artists change their business registration (persona jurídica) to a new name and continue on their merry way, often doing business at the same location with the same personnel. At least 100 of them fit this description, according to Rojas. He adds that the Caja tries to go after these under article 30 of the Caja law because, if a new owner buys a business in debt to the Caja, the new owner buys the old debt as well. But the law makes it an uphill battle.

One factor that an article in the daily paper La Nación failed to note is that the Caja’s own billing office is hardly fast on its feet, often waiting too long to take action against the deadbeat business. Of the 10 top debtors (now moribund, by Caja reckoning) the largest is Bananera El Ceibo with ¢1.2 billion in unpaid personnel premiums for health insurance. One question La Nación does not ask is: How did that company manage to build up such a debt without the Caja taking immediate legal action?

Ironically, among active businesses with big back bills with the Caja are the two most successful professional soccer clubs, Saprissa and Alajuela. Saprissa owes more than 676 billion colones while Alajuela is in hock for 693 billion and a few coins. Moreover, Alajuela’s debt is for the period between March 1996 to December of 2004 and Saprissa’s between Nov. 1999 to August 2004. This is hardly what one might call aggressive collections by the Caja officials.

Just to show you how worried businessmen are about the apparently toothless Caja, Jorge Hidalgo, Alajuela’s president, blandly told La Nacion that he isn’t worried because the club’s stadium serves as collateral. Just how is the government supposed to pay for hospital supplies, medical salaries and building upkeep by looking at a stadium Hidalgo did not bother to explain…