On video: An emotional meeting between the Rozhenskis who were injured on the seventh of October and have not seen each other since/Photo: Ichilov Hospital spokeswoman
The latest move creates a real and tangible threat to the health of Israelis, who will find out very quickly how much this reform makes the insurances they are forced to pay for, on the one hand, and contributes almost nothing to reducing the terrible burden on the public medical system, which is kneeling under an impossible budgetary burden.
The reform, which was led by the Ministries of Health and Finance, is full of beautiful words and statements about "strengthening the public health system on the one hand and lowering health insurance prices on the other hand, "an investment of hundreds of millions of shekels for the purpose of increasing accessibility and service and patients" and statements that this is "significant news for the economy and the citizens of the country"
. One of the Ministry of Finance was right - this is indeed significant news - another hard news that means a dramatic increase in the price of the various insurances and many more families who will now be forced to pay more for their health expenses, which may even cause some of them to give up coverage because of the soaring costs, harming their health and that of their loved ones.
The logic behind the reform had no hold on reality/ShutterStock
The reform put an end to the graduated and affordable discounts enjoyed by the insured
The main goal of the reform was to reduce the insurance duplication between the private insurance and the insurance of the health insurance funds, mainly regarding the surgery chapter in Israel, by having the insurance companies transfer money to the health insurance funds for surgeries performed through them. In practice, the reform was intended to force the customer, meaning us ordinary citizens, to purchase coverage against catastrophes before purchasing other coverages.
A few months after its entry into force and it can be said that there is no actual reform, but the opposite. In practice, the public's policies were not reduced, but became more expensive by dozens of percent.
The logic behind the reform was that the insurance companies paid off the health funds And thus they will pass budgets and strengthen the collapsing public system, and while doing so they will put an end to the celebration of the salaries of the senior doctors in the private system, there was no grip on reality.
These days we see that the insurance companies who realized that they will have to cover more surgeries at their own expense and transfer more money to the health funds and at the same time give the public fixed discounts for 10 years, will raise the premiums significantly, in order to finance the move.
The reform's attempt to define a uniform structure for the health insurance market, in order to make it easy for policyholders to compare the various insurance offers and make an informed choice between them, using parameters of price, service quality, and payment of claims, ultimately works to the detriment of the public.
As part of the reform, the insurance companies are forbidden to grant graded discounts, as was customary until now, and the price is paid by the citizens.
For example, if it used to be possible to get a discount of 40% in the first year, 30% in the second year, and 20% in the third year, since its entry into force, the insurance companies can only grant fixed discounts for a period of about 10 years.
Although it is true that now, following the reform, it is indeed easier to compare the various price offers, but on the other hand the tiered discounts that were customary before have disappeared from the market.
If we take for example a young and healthy insured person - in the world before the reform, he could switch from one insurance company to another every few years, thus staying with a new policy all the time and enjoying deep discounts.
Now, he has been denied the ability to do so and is obligated to pay a high and almost full price from the start.
Check suitability for treatment
Israeli development: a scientific solution to body acne with over 90% success
In collaboration with Rivka Zaida Laboratories
Deborah Cohen.
The attempt to define a uniform structure ultimately works to the detriment of the public/his Gilad Bar
An increase of up to 50% in the cost of insurance
Let's take for example the 'Israeli' family, which has 3 children.
Before the reform, they paid an average of NIS 1,300 for life and health insurance, while the children's health insurance cost an average of NIS 60 per child.
Today after the reform, they will already have to pay about NIS 90 per child - a 50% increase.
In addition, a health policy for a 40-year-old woman, for example, became more expensive by about NIS 60, and now costs around NIS 200 a month.
At the same time, it is important to remember that the price increase does not only concern those who are now purchasing a new insurance policy, but also everyone who holds a private health policy from 2016. Starting this June, we are all going to pay premiums according to the new and higher rates.
This is how the fear arises that households, who are already struggling to cope with the cost of living in Israel, will not be able to meet these payments and will cancel important insurance coverages that could leave them exposed to significant health risks.
The second goal of the Ministry of Finance to invest huge budgets that will now be shared, to strengthen the public health system, among other things with the aim of shortening queues, is also not feasible.
In light of the complex economic situation we found ourselves in following the war in Gaza.
When thousands of injured people are crowding the health care system, it is hard to believe that there will not be very long queues in the public system, where it is already difficult to get appointments in a reasonable amount of time.
It can be estimated that if the reform had not 'preceded' the outbreak of the war in Gaza by a week, it would have been rejected altogether, as it creates an additional and significant economic burden on the general public, and its usefulness in the field of improving the health system and shortening queues is questionable.
The combination of the established failed reform, alongside the continuation of the war and the cuts in services for citizens, will mean that the State of Israel will invest even less in its health system, and will continue to roll the direct and indirect expenses on all of us.
The author is a financial planner who assists individuals and families and helps them manage insurance risks
More on the same topic:
business
Insurance
health insurance
insurance
health insurances