Israelis Spend Over $400 Monthly on Healthcare, Study Reveals
The average Israeli household spends approximately 967 shekels per month on healthcare, with an additional 584 shekels paid as health tax, totaling 1,551 shekels (about $420 USD) monthly. This figure excludes any extraordinary medical expenses. The health tax rate is 3.23% on the first portion of salary up to 7,703 shekels and 5.17% on amounts exceeding this, capped at a maximum monthly payment of 2,534 shekels. Starting in 2026, the tax structure will shift to a fixed, inflation-adjusted amount instead of a percentage of salary.
Health insurance premiums constitute the largest portion of family healthcare spending, averaging 364 shekels per month. This includes 216 shekels for supplementary health services (SHIS) provided by health funds, 125 shekels for private insurance, and 18 shekels for long-term care insurance. Dental care is the second-largest expense at 225 shekels monthly, followed by medications and medical equipment at 251 shekels, and other health services at 127 shekels.
The pricing of SHIS plans, such as "Platinum," shows significant age-based disparities. A child might pay 27 shekels monthly, while an individual aged 65 or older pays 156 shekels for the same plan. This age-based pricing mechanism is a primary reason why younger families perceive they are paying twice for healthcare.
A family of four with parents in their forties and children under 18 pays around 279 shekels monthly for a "Platinum" plan with Clalit, totaling approximately 3,350 shekels annually for the plan alone. Maccabi offers a family cap of 152 shekels per month on its "Adif" program, a feature unique among the four major health funds. Clalit, Maccabi, and Leumit do not have family caps, with payments accumulating per person.
Co-payments for certain services also vary. The family deductible cap is 250 shekels per quarter at Clalit, 266 shekels at Maccabi, and 313 shekels at Leumit, covering visits to specialists and outpatient clinics. Prescription drug costs start at a minimum of 21 shekels, with additional charges of 15% of the consumer price or 10% if a generic alternative exists. Chronic patients have a separate quarterly cap of about 1,190 shekels at Clalit.
Overall, 78.9% of Israelis, or 7.4 million people, hold supplementary health insurance. A Brokdale Institute study found that 87% of adults aged 22 and over have some form of voluntary insurance beyond the basic basket of services, contributing to the phenomenon of double coverage and redundant payments for the same treatments.
