• Israel Health Insurance Information

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In Israel, compulsory and basic universal healthcare is a legislative requirement, as spelled out in the National Health Insurance Act (or National Health Insurance Law). 

In the late 80s, a National Committee of Inquiry was set up to review the healthcare system in Israel and it presented the government with a list of recommendations. 

These recommendations were put under deliberation and finally were passed as a law by Israel government on 1st January 1995.

Even before that, as much as 85% of the residents are already under coverage by the country's four, not for profit, sickness fund.  These funds managed their own medical facilities, financed in part by employers/government and in part through the insurance levies, which are based on income levels.  However, there were complexities even back then.

 For example, Clalit, which is the largest fund, required all members to be involved in the Histadrut labor organization, which may be against their wish or maybe even not possible technically. 

Some other examples are restrictions of memberships based on criteria such as age, pre-existing conditions or other variables; variations off benefit coverage or services across funds; and finally a proportion of the citizens who were never covered at all.

 Prior to the law, premiums were demanded from all members by all the funds.  After that, Israel Social Security Agency formulated a new progressive national health insurance tax.

This new tax is then channeled to the sickness fund based on membership as well as demographic makeup. 

This makes sure that all citizens will be under some form of coverage.  While membership in one of the four funds is still a prerequisite, members are free to choose between funds (switching is possible once every half yearly). 

This has definitely introduced more competitions within the four funds.  Every year, Ministry of Health (via a committee chosen earlier) would publish a "basket" of packaged medical services and prescriptions where all funds must offer as a minimum service.  The objective is to ensure that all citizens are able to access basic health care no matter which fund they are with -- which happens to be the driving factor of the law.

 While the law has been successful in ensuring all citizens have access to basic medical care and at the same time, it is also responsible for lifting the medical care standard in the country as well, but the "basket" is often described as not offering enough coverage. 

Another complaint from the market is that the law has also made the tax income base amount (the maximum amount of yearly earnings that are taxable) to be really high, causing many unhappiness among the high income earners. 

Additionally, there are few who complain about the amount of copayments for certain services that keep on increasing.

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