The social security system in the Dominican Republic.
Lic. Annalisa Jáquez
Dhimes & Marra / attorneys at law

Created by Law 87-01, the Dominican Social Security System has been considered as one of the most important social, economic and financial reforms.

With the coming into force of the Law 87-01, the Dominican Social Security System is modernized, bringing great expectative with regard to the financing for the protection of the population against the risks of old age, disability, outlive, maternity, childhood and labor risks.

The Social Security System will protect Dominicans and legal residents in the Dominican Republic, without restrictions for reasons of health; sex; social, politic or economic situation. Under the new system, the affiliation, contribution and participation are obligatory and guarantee the effective access to all the services.

For achieving its purposes, Law 87-01 creates the Old Age, Disability and Outlive Insurance; the Family Health Insurance; as well as the Labor Risk Insurance.

The Old Age, Disability and Outlive Insurance pretend to replace the lost or reduction of the income, caused by old age, death, disability and outlive. The implementation of this insurance will have a great impact in the economy with the increment of the Investments in the productive sectors.

Besides, the Family Health Insurance includes the health promotion, the prevention and treatment of illnesses, the rehabilitation of the patient, the pregnancy, the birth and its consequences. As well, includes the services of children care.

The objective of the Labor Risk Insurance is to prevent and cover the damages caused by labor accidents and/or professional illnesses.

The Dominican Social Security System is organized based of the specialization and separation of functions. The State is charged of its direction, regulation, financing and supervision, while public, private or mixed Health Risk Administrators (ARS), Health Services Providers (PSS) and Pension Funds Administrators (AFP) accomplish administration and provision of services.

For financing the System, Law 87-01 establishes three regimes: the contributive regime, applicable to the public and private wage earners and financed by its beneficiaries; the regimen of subventions, which protects the independent workers with unstable income or under the minimun national salary, as well as unemployed, disabled and poor persons, basically financed by the Dominican State; and, the contributive-subvention regime protecting independent professionals and technician with average income, similar or superior to the national minimum salary, financed by contributions of the worker and State allowances.

The Social Security is of progressive and constant development. Law 87-01 establishes the dates when the different services will come into force, starting with the Family Heath Insurance - on November 1rst, 2002 - in the southwest region of the country.

In this transitory period, the Dominican Republic is in process of elaborating regulations, creating new institutions, diffusion of Law 87-01 and its complementary regulations, as well as reorganizing the public and private institutions to adapt its patterns and services to the principles or the Social Security.

The implementation of the Dominican Social Security System raises great challenges, especially during this phase oriented to establish solid basis to guarantee the successful execution of the new dispositions.