Israeli Families Face Significant Monthly Healthcare Expenses

Israeli households allocate a substantial portion of their budget to healthcare, with average monthly spending reaching 967 shekels, according to a Mako report. This figure excludes the mandatory health tax deducted directly from salaries. The total monthly expenditure, including the health tax, averages 1,551 shekels, amounting to approximately 18,600 shekels annually, even before any emergency or complex treatments.

The health tax is calculated at 3.23% on the first 7,703 shekels of monthly income and 5.17% on income exceeding that amount, with a maximum monthly deduction capped at 2,534 shekels. Starting in 2026, the tax structure will shift to a fixed sum tied to the consumer price index, replacing the previous percentage-based calculation linked to average wages.

Medical insurance constitutes the largest single healthcare expense, averaging 364 shekels per month. This includes 216 shekels for supplementary health services (Shaban) from health funds, 125 shekels for private insurance, and 18 shekels for long-term care insurance. The cost of Shaban coverage varies dramatically with age; a child might pay 27 shekels monthly, while an adult over 65 could pay 156 shekels for a similar plan. A family of four with parents over 40 and two children under 18 pays around 3,350 shekels annually for Shaban status alone.

Dental care represents the second-largest medical expense, costing an average of 225 shekels per month. Spending on medications and medical equipment averages 251 shekels, with other medical services accounting for 127 shekels monthly. While some health funds offer family payment caps, others calculate costs per individual. Patients also face co-payments for prescription drugs, with a minimum of 21 shekels for basic medications and 15% of the retail price for others, though lower rates apply for generic versions and caps exist for chronic patients.

In total, Israelis paid 17.9 billion shekels in private insurance premiums. The report also notes that 7.4 million Israelis (78.9% of the insured population) hold Shaban programs, which can lead to redundant coverage for the same risks.