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donderdag 1 mei 2025

WORLD WORLDWIDE EUROPE FRANCE - news journal UPDATE - (en) France, UCL AL #358 - Politics - Health Insurance: Arpège, When Outsourcing Turns into a Social Disaster (ca, de, fr, it, pt, tr)[machine translation]

 The Arpège software, designed to automate the management of daily health

insurance benefits, is at the heart of a scandal that reveals the
excesses of outsourcing public services. This fiasco, costing EUR37
million, directly affects thousands of social security beneficiaries in
Loire-Atlantique and Vendée, while highlighting the limitations of
outsourcing management to private providers. For more than three months,
more than 15,000 insured persons, particularly those on sick leave or
maternity leave, have experienced delays in the payment of their daily
benefits. These delays, sometimes lasting several weeks, have plunged
many people into a critical financial situation, depriving them of
essential resources to live with dignity. The source of this chaos: the
Arpège software, developed by Sopra Steria, a French IT and business
services giant.

Designed to simplify and accelerate file processing, Arpège proved
incapable of handling certain complex cases, leading to calculation
errors, payment delays, and a backlog of unprocessed files. Faced with
the scale of the malfunctions, the National Health Insurance Fund (CNAM)
was forced to suspend use of the software, revealing a clear
manufacturing and supervision flaw.

A Flawed System with Dramatic Consequences
The choice of Sopra Steria to develop this IT system raises serious
questions about the appropriateness of outsourcing key health insurance
functions to private companies. In 2022, a Senate inquiry had already
highlighted the excessive dependence of public administrations on this
service provider, which generates 55% of its revenue through public
contracts.

This dependence, often justified by arguments of profitability and
efficiency, is now showing its limits. The Arpège case adds to a long
list of IT malfunctions in public services, where promises of
modernization regularly clash with the reality of poor management. These
repeated failures jeopardize the continuity of social security benefits
for insured persons and increase the workload of employees, who must
compensate for the errors of private providers. Deprived of their daily
benefits, thousands of people find themselves in a precarious financial
situation.[1]

Private management incompatible with public service missions
Health insurance employees, already facing a heavy workload, must face
an unmanageable situation. Forced to correct errors in the Arpège
software, they work in degraded conditions, often without sufficient
resources and within unrealistic deadlines. This work overload generates
increased stress and a feeling of helplessness in the face of a system
that seems to be spiraling out of control.

An agent, speaking on condition of anonymity, explains: "We spend hours
correcting errors that shouldn't even exist. It's exhausting and
discouraging. We feel like we're working in a constant state of
emergency, without any recognition." Marie-José Robin, secretary of the
SUD Social Protection union at the Paris CPAM (Health Insurance Fund),
points out that the situation has been going on for years: "SUD has been
denouncing the Arpège software since November 2020."

In a context where corporate profits often take precedence over the
quality and reliability of services, users and employees alike are
paying the highest price. How can we justify outsourcing tasks as
sensitive as the management of daily allowances to publicly listed
companies whose financial objectives conflict with the public interest?

Warning Precedents
The Arpège case is unfortunately not an isolated one. In recent years,
several IT projects in the public sector have turned into fiascos, often
due to poorly managed outsourcing. For example, the Louvois software,
used for military payroll management, experienced major malfunctions,
resulting in payment errors for thousands of soldiers. Similarly, the
tax management software project, entrusted to a private company, was
marred by delays and considerable cost overruns. These examples
demonstrate that outsourcing public services is not a miracle solution,
but rather a source of major risks.

The Arpège scandal lies behind significant economic and political
issues. Private companies like Sopra Steria benefit from lucrative
contracts with public administrations, often with no guarantee of
results. This dependence of public services on private providers raises
questions about the governance and transparency of public procurement.

Furthermore, policymakers are often accused of favoring outsourcing to
reduce short-term costs, without considering the long-term consequences.
This logic of immediate profitability comes at the expense of service
quality and the protection of beneficiaries' rights.

Proposals for emerging from the crisis
Faced with this alarming situation, several solutions can be considered
to prevent such scandals from recurring: strengthening controls over
private providers, improving the transparency of public procurement, and
favoring internal solutions to avoid dependence on private providers.
Finally, the rights of social security beneficiaries must be protected:
in the event of problems, compensation mechanisms must be put in place
to quickly compensate victims.

The Arpège fiasco is much more than a simple IT malfunction. It reveals
the limitations of a model that prioritizes private interests to the
detriment of the public interest. The thousands of social security
beneficiaries and employees, the primary victims of this disastrous
management, deserve concrete answers and a thorough reform of
outsourcing practices.

As public services face growing challenges, it is time to reaffirm their
primary purpose: to serve those in need, not shareholders. The Arpège
scandal must mark a turning point in the way public service missions are
managed to prevent such social disasters from recurring.

Union members from SUD CPAM Paris

Sopra Steria: when public service finances shareholders
Ah, Sopra Steria! This name resonates like a promise of modernity... or
rather, like a warning for public services. This French IT giant is the
archetype of what happens when the private sector enters the public
sector. With revenue of EUR5.1 billion in 2023, 55% of which comes from
public contracts, Sopra Steria has successfully transformed government
funds into gold for its shareholders.

Listed on Euronext Paris, Sopra Steria is a delight for investors. With
a share price up 15% in 2023, shareholders are rubbing their hands in
glee. Every malfunction, every late payment, every work overload
translates into dividends for these lucky few.

In 2023, the company distributed EUR120 million in dividends. A handsome
reward for often flawed products.

The most ironic thing? Sopra Steria presents itself as a committed
player, concerned with the public interest. On its website, it boasts of
its "innovative solutions" and its "commitment to the common good." This
is empty talk when its software is plunging thousands of people into
poverty.

The next time you hear about faulty software in public services,
remember: behind every malfunction, there may be a company like Sopra
Steria, transforming your taxes into profits for its shareholders. Quite
a success, isn't it?

Validate

[1]"Trapped by its software, health insurance is cutting benefits for
thousands of users"

https://www.unioncommunistelibertaire.org/?Assurance-maladie-Arpege-quand-l-externalisation-vire-a-la-catastrophe-sociale
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