Ministry of Health: The four funds spent NIS 132 million in 2019 • Disagreement between the parties: Is advertising defined as information for the insured • The funds: "Work transparently"

• National Health Insurance Fund

  Photo: 

  Joshua Joseph

The four HMOs - Clalit, Meuhedet, Leumit and Maccabi - which are in heavy deficits long before the corona, spent NIS 132 million in 2019 on marketing activities, and set additional expenses on self-marketing in the amount of NIS 130 million under the budget item of "service centers". This emerges from data obtained by "Israel Today".

Funds are allowed to allocate a certain amount from their budget for advertising and marketing during routine hours - which amounts to only NIS 40-30 million.

Apart from that, despite the ban imposed on them by the Ministry of Health last March, to transfer insureds from each other until this coming September, the funds continued to recruit insureds. Videos received by "Israel Today" show that Meuhedet and Maccabi performed Hassidic orchestras on branded stages outside the Corona hotels. Clalit held a virtual show featuring the best singing stars in the ultra-Orthodox sector on the eve of Lag B'Omer. Behind the performers were posters with instruction on the importance of wearing a mask and maintaining hygiene and distance. According to Clalit, the virtual celebration was a way to convey health information to the public.

A source in the health system explains: "HMOs are allowed to spend money on advertising and marketing under the law. But over the years they have argued in many cases, that it is not advertising and marketing but providing information to insureds. "Both kosher and for advertising and marketing, information for the insured must be proportional to the size of the fund. It does not make sense that Meuhedet, which is four times smaller in general, spends more than it. In addition, a rapid increase in advertising and marketing expenses can be seen."

From the data revealed here, it can be seen that the investment in advertising and marketing is three times what is allowed, has increased over the years and is inversely related to the size of the fund, as the source stated. In fact, the small funds spend more than the largest (general) fund on advertising and marketing.

Peak: United

The peak of spending on marketing in 2019 is the United Health Insurance Fund. The fund, which insures about 15% of Israelis, has invested NIS 40.7 million in advertising and marketing. It is followed by Maccabi, which has about a quarter of the population in Israel insured, with NIS 38.3 million. Clalit spent about NIS 31 million, and Leumit, which insures less than 10% of Israelis, spent NIS 21.5 million. In total, as stated, NIS 132 million.

This is an increase compared to 2018, when the funds' expenses for marketing and recruiting insured persons amounted to NIS 120 million and in 2017 to NIS 108 million.

for further reading:

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Corona? HMOs do not give up marketing

• Which drugs do the HMOs not fund?

In 2020, the Ministry of Health's Supervision Division of the HMOs issued a clarification to them that excluding all marketing expenses in the financial statements constitutes a criminal offense. Following the directive, the HMOs added expenses that in previous years were recorded in other budget items. Of NIS 73 million in 2018 and NIS 57 million in 2017 earmarked for medical centers.

Clalit Health Fund responded: "We act in accordance with the rules of regulation, with full transparency and constant audit by the Ministry of Health."

Meuhedet said: "The data in your possession is incorrect."

Leumit said: "Investing huge resources in marketing and sales instead of in the insured is a waste of public money." 

No response was received from Maccabi.