Unprecedented Health Insurance Policy Increase: How to Prepare for the Changes Coming in June

The Office of Capital, Insurance, and Pension Market Supervision recently presented data to the Knesset Finance Committee indicating that the average cost of health insurance policies will increase from June 1st. This increase is due to the implementation of a reform in the health insurance market. Policies that cover expenses from the first shekel will see an average price hike of 39%, with those for individuals under 20 years of age and over 66 years of age 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 reform aims 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, as 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 increase 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 the first shekel policy, individuals must notify their insurance company in advance. These changes are part of an effort to streamline and optimize the health insurance market to benefit both insurers and insured individuals alike.