Health reform seeks broad improvements in Chile

Subject

Health reform in Chile.

Significance

On April 22, President Sebastian Pinera announced two initiatives to reform Chile’s private and public health systems. The first would end years of discrimination and spiralling costs for affiliates of private health insurers, known as ISAPREs. The second aims to improve access and coverage for users of the national health service by strengthening the role of FONASA, the institution which finances the public health system.

Impacts

• Greater competition may deepen the controversial concern that ISAPREs “cannot afford to incorporate sick people”.
• Fiscal revenues will fall if affiliates leave FONASA in large numbers, as expected.
• The delay for new ISAPRE members to access all benefits has been called discriminatory and will be a focus of debate in Congress.