Israeli Families Spend Over $400 Monthly on Healthcare Costs

Israeli households spend an average of 1,551 shekels (approximately $415) per month on healthcare, totaling around 18,600 shekels annually, even before accounting for any unusual medical treatments. This figure includes a health tax deducted directly from paychecks and out-of-pocket expenses for insurance and services.

The health tax, which is 3.23% on the first portion of salary up to 7,703 shekels and 5.17% on amounts exceeding that, is capped for higher earners. Starting in 2026, the tax structure will change to a fixed, inflation-adjusted amount rather than a percentage of salary.

Health insurance premiums constitute the largest portion of these costs, averaging 364 shekels per month. This includes payments to health funds' supplementary insurance (SHABAN), private insurance, and 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 cost of supplementary health insurance varies significantly with age, with individuals aged 65 and older paying up to six times more than younger individuals for the same coverage. For example, a family of four with parents in their forties and two children under 18 might pay around 3,350 shekels annually for supplementary insurance from Clalit, while older couples face much higher costs. Some health funds, like Meuhedet, offer family payment caps, but others do not.

Additional costs include co-payments for prescription drugs, with a minimum of 21 shekels per prescription and higher rates for non-generic medications. Chronic patients have separate quarterly caps on these co-payments. The article notes that a significant portion of Israelis, 87% of those aged 22 and older, hold some form of voluntary insurance beyond the basic basket of services, contributing to potential duplicate coverage and increased spending.