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Chile has been the first country in Latin America which has built a two-tiered health care system by partially privatizing the health insurance sector. Despite the intial decrease of health expenditure, more researches now show that health inequality within the Chilean health sector has been augmented with privatization of its insurance system. To explore such inequality, this article looks into the impact of privatization of health insurance on women's health. The author argues that privatization has intensified medicalization of women's body and, consequently, it worsened women's health in Chile. This article contributes to a more comprehensive understanding of market-oriented health care reform by linking it with medicalization process.