The Flaws in the Isapres Ruling

Abstract

In 2002, five Isapres (Chile's private health insurers) -Banmédica, Colmena, Consalud, ING, and Vida Tres- reduced the coverage they offered their members but kept prices unchanged. That is, members ended up with worse health plans than the ones they had before and at the same price. In 2005, the National Economic Prosecutor's Office (FNE) went to the Competition Tribunal (TDLC) and charged the five Isapres with collusion. This past July 12, the TDLC, in a “split ruling” (three votes in favor and two against), found that there was insufficient evidence that the Isapres had colluded to reduce the coverage of their plans. Continue reading...