According to the Office of Capital, Insurance, and Pension Market Supervision, there will be an increase in the average cost of health insurance policies starting from June 1st. This hike is a result of the implementation of a reform in the health insurance market. Policies covering expenses from the first shekel will experience an average price increase of 39%, with those for individuals under 20 years old and over 66 years old increasing by 45%. Additionally, policies that complement extended health insurance will see an average increase of 2.3%, rising to 5.6% for clients over 66 years old.
The purpose of this reform is to reduce the number of people who hold multiple insurance policies that duplicate each other. Unlike life insurance policies, duplicating health insurance policies does not make financial sense since typically only one policy can be used in case of an insured event. Currently, there are approximately 1.8 million people insured “from the first shekel” and half a million individuals insured under the extended insurance supplement from sickness funds. The ministries of finance and health are looking to shift this ratio to generate more revenue for the public health system.
Starting June 1st, individuals with both private first-shekel insurance and extended health insurance will be automatically transitioned to the extended health insurance supplement policy. To remain on their first shekel policy, individuals must notify their insurance company promptly. These changes are part of an effort to streamline and optimize the health insurance market for both insurers and insured individuals’ benefit.
