Isapre stands for Instituciones de Salud Previsional, meaning "Preventive Health Institutions." These are private health insurers in Chile that offer an alternative to Fonasa, the public health system. Employees can choose to direct their mandatory 7% health contribution to either an Isapre or Fonasa.
Isapre vs. Fonasa
Fonasa is Chile's public health fund that provides universal coverage with lower out-of-pocket costs but longer wait times. Isapres offer faster access to healthcare, broader provider networks, and additional coverage options, but plans can be more expensive. Many employees with higher salaries choose Isapres and pay additional premiums above the mandatory 7% contribution.
Plan Structure
Isapre plans vary in coverage levels, copay amounts, and provider networks. Plans are priced using a factor-based system that considers age, gender, and number of dependents. Recent reforms have limited price discrimination and improved transparency in how plans are structured and priced.
EOR Relevance
An EOR in Chile manages the health contribution process, whether the employee chooses Isapre or Fonasa. This includes processing the mandatory 7% deduction, handling any additional voluntary contributions for Isapre plans, and managing enrollment and plan changes.