• Of money

• All articles

Will the middle class continue to pay?

Get the new health tax

The new tax hidden in the state budget: a 40% levy on payments to private doctors, which is like a health tax for everything.

The independent doctors to the Minister of Finance: "This is not a reform that will lead to a 'strengthening of the public health system', but a difficult and unusual decision that will cause a significant increase in the cost of health services"

Tags

• Doctors

• health tax

• State budget

• Avigdor Lieberman

Sonia Gorodisky

Sunday, 01 August 2021, 11:39 Updated: 14:57

• Share on Facebook

• Share on WhatsApp

• Share on general

• Share on general

• Share on Twitter

• Share on Email

0 comments

Has the Minister of Finance, Avigdor Lieberman, initiated a move that at least on the face of it harms the middle class, the dairy cow of the taxes in Israel? The reference to one of the most problematic sections in the Arrangements Law that is in government discussions today is a 40% levy on payments to private doctors, which was reported in Walla immediately upon the disclosure of the draft Arrangements Law: https://finance.walla.co.il/item/3450639.

Although this is not a "tax" in the classic sense of the word, one that will be imposed on the public, but it is clear that private doctors will not give insurance companies the payment received from their insureds - and they will not absorb the new payment - and impose it on the insured, ie most Israeli citizens. .

Seemingly good intentions, as stated by a source in the ministry the main consideration behind the proposal: "For the purpose of strengthening the public health system and in view of the external effects of the private system on the public health system, starting January 1, 2022 The insurance or the health funds to the doctor or the medical institution, for private activity of surgeries and counseling. "

This move has so far received little exposure - and as a result - with the exception of criticism, but it is likely to provoke strong opposition, both from the public and the health system. The Treasury estimates that this step will increase state revenues by NIS 940 million a year.

Allegedly, this is not a tax that will apply directly to patients, but as stated, it is not inconceivable that if the move is approved, it will also be passed on to the final consumer, through a reduction in reimbursements or an increase in insurance premiums.

So explain to the Treasury the logic of the tax on private medicine "system of private health insurance negative external effects on the public system. First, the system of public finances significant costs that are not subject to the system of private - such as the training of doctors, the maintenance of infrastructure emergencies and provision of health services for all policyholders.

In addition, "The public system is subject to many restrictions that do not apply to the private system, such as wage control, price control and accounting rules between hospitals and health funds."

More on Walla!

Sex life not satisfying?

This is how you will improve performance - in a special sale

To the full article

Holders of private health insurance, be prepared to pay - and a lot, if the finance proposal passes (Photo: ShutterStock)

"This is in fact an extreme tax of 40%"

Independent medical organization 'country' '

, turned through a letter sent by the organization's chairman, Dr. Eyal Shapira to Finance Minister Avigdor Lieberman, entitled "Independent Doctors position against extreme taxation for operating the health care insurance."

So, the doctors The Independents: "Our Honorable Minister, Hello. Ahead of the approval of the state budget and the Government Arrangements Law, we want to shed light on an unusual and unprecedented decision whose approval will lead to a fatal damage to the health system in Israel and, first and foremost, to the patient public.

This is in fact the imposition of an extreme tax at a rate of 40%, on any procedure or medical advice performed as part of a private insurance policy or Shban services.

Dr. Shapira points out why in his opinion the tax, which is a kind of new "health tax", will not achieve its purpose:

Private health insurance has long been not a luxury, but the domain of most of the country's citizens, at all levels of the population and at all wage levels. The realization of patients' medical rights through private health insurance usually takes place in times of distress and an unexpected medical crisis.

In these difficult moments, the insured public expects to easily get the rights and entitlements they paid for as part of the premium and over the years and without being dragged into unnecessary financial expenses and financial worries.

We determine this, not from theoretical assumptions, but from the very fact that we live, on a daily basis, our patients and represent thousands of independent physicians working on a mission and professionally, in the public system and in the private system.

Despite the stated purpose of imposing the exceptional tax (strengthening the health care system), we are convinced that the approval of the arrangement will lead to the opposite result. The extreme levy in question will not be imposed on insurance companies alone

.

The extreme levy, which the Ministry of Finance estimates will reach astronomical amounts, will be borne in part by insurance companies and mainly by doctors (by reducing rewards and limiting treatment options) and the patient public (by dramatically raising insurance premiums and reducing insurance coverage).

All this, in order for the funds to reach the Treasury and certainly not the health system, as described in the wording of the decision:

"The levy will be collected from the insurance companies and the HMOs ... the ISA or the ISA plans ... and will be transferred to state revenues."

"We want to shed light on an unusual and unprecedented ruling whose approval will lead to fatal damage to the health system," the doctors write to the Minister of Finance (Photo: ShutterStock)

"Remove the cut"

Doctors sign the appeal Lieberman stating: "This is not reform will lead to reinforcement public health system", but the derivation hard and exceeded causing a steep rise significantly health and injury among patients in the form of direct taxes is outrageous.

In addition, the arrangement is a serious breach doctor system private and one public "Those who work day and night for the health of the citizens of Israel.

I call on you to act in the name of common sense and the public interest and demand the removal of the decree from the Arrangements Bill."

As will be recalled, the intention to impose a tax on medical services was "discovered" in the draft Arrangements Law.

The official reason is to strengthen the public medical system (in other words: increase the health budget at the expense of the majority of the public), but since most Israeli citizens, certainly from the burden-bearing middle class, whose name the finance minister likes to speak, is a new health tax for all intents and purposes.

• Share on Facebook

• Share on WhatsApp

• Share on general

• Share on general

• Share on Twitter

• Share on Email

0 comments