Overconsumption of medical visits leads to adverse selection in Chilean health insurance.
The article examines how people in Chile choose between public and private health insurance, and how this choice affects their healthcare usage. For workers who must buy insurance, there is a bias against private insurance for independent workers and against public insurance for dependant workers. When it comes to medical visits, there is a significant tendency to overuse healthcare services, regardless of the type of insurance chosen. Moral hazard is not a big issue for hospitalization.
