The health insurance market is undergoing significant changes, with the aim of improving efficiency and increasing revenue for public health services. According to data presented by the Office of Capital, Insurance, and Pension Market Supervision to the Knesset Finance Committee, the average cost of health insurance policies will increase starting from June 1.
The reason for this increase in prices is due to a reform that aims to reduce the number of individuals with multiple insurance policies that duplicate each other. This does not make financial sense in the case of health insurance. Policies that cover expenses from the first shekel will see a price hike of about 39%, with even higher increases for insured individuals under 20 years of age and over 66 years of age. Additionally, policies that complement extended health insurance (SHABAN – additional medical services) will also see a price increase, with an average of 2.3% for most clients and 5.6% for those over 66 years old.
Currently, there are 1.8 million people insured “from the first shekel” and around half a million individuals with supplemental extended health insurance from sickness funds. However, as part of this reform, those wishing to remain on their policy from the first shekel will need to notify their insurance company before June 1st as they will be automatically transferred to the supplement policy.
In summary, it is important for policyholders to review and understand their insurance coverage in light of these changes. The reform aims to improve efficiency in the health insurance market and increase revenue for public health services by streamlining policies and reducing redundancy among multiple insurers.
