Israeli Families Spend Over $400 Monthly on Healthcare Costs

The average Israeli household spends approximately 1,551 shekels (about $420 USD) per month on healthcare, totaling around 18,600 shekels annually, even before accounting for any extraordinary medical events. This figure includes a health tax deducted directly from paychecks and out-of-pocket expenses for services and insurance.

The health tax, which is 3.23% on the first portion of salary up to 7,703 shekels and 5.17% on income above that, capped at a maximum monthly payment of 2,534 shekels, is a significant component of the total cost. Starting in 2026, this tax will transition to a fixed, inflation-adjusted amount rather than a percentage of salary.

Beyond the tax, supplementary health insurance (SHI) is the largest expense, averaging 364 shekels monthly. This breaks down into 216 shekels for the health fund's SHI, 125 shekels for private insurance, and 18 shekels for long-term care insurance. Dental care represents the second-largest expense at 225 shekels per month, followed by medications and medical equipment at 251 shekels, and other health services at 127 shekels.

The cost of SHI varies significantly with age, with a six-fold difference between younger individuals and those aged 65 and over. For example, a child might pay 27 shekels per month for a 'Platinum' plan with Clalit, while a 65-year-old pays 156 shekels for the same plan. This age-based pricing contributes to younger families paying less initially, while older couples face higher costs.

Family plans and out-of-pocket maximums also factor into the overall expense. A family of four with parents in their forties and two children under 18 might pay around 3,350 shekels annually for Clalit's 'Platinum' plan alone. While some health funds, like Meuhedet, offer family payment caps, others like Clalit, Maccabi, and Leumit accumulate costs per person without a family limit. Co-payments for prescription drugs start at a minimum of 21 shekels, with higher percentages applied based on the drug's price and availability of generics. Chronic patients have separate quarterly caps on their out-of-pocket expenses.