Israel's National Insurance Institute Under Fire for Autism Benefit Cuts
The National Insurance Institute (NII) in Israel is facing significant criticism and legal challenges over its recent actions concerning disability benefits for children diagnosed with autism. In early July, the deputy director-general of the NII, Zvika Cohen, sparked public outrage by suggesting that some parents view an autism diagnosis as an "exit," implying they exploit the system for financial gain. This statement came amidst a broader effort by the NII to combat alleged fraud in autism diagnoses, which has reportedly led to the doubling of diagnosed children since 2018.
The NII has been accused of maintaining a secret "black list" of healthcare professionals suspected of issuing fraudulent or questionable diagnoses, particularly those made privately rather than through official channels like health maintenance organizations or the Ministry of Welfare. This has coincided with several high-profile fraud cases, including one dubbed "Children's Channel," which led to indictments in September 2025 against five individuals for systematic fraud and forgery totaling millions of shekels.
A particularly controversial move occurred in December 2025 when the NII sent text messages and letters to thousands of parents, informing them that their children's disability benefits were being revoked due to "misleading information." The NII claims this affected only 400 cases, but sources suggest the number is much higher, with an estimated tens of millions of shekels in monthly benefits frozen. This action, reportedly under regulation 17 of the National Insurance Regulations, allows for immediate benefit suspension, but has drawn sharp criticism from labor courts for allegedly being implemented without sufficient proof.
Several lawsuits have since been filed, with labor courts ruling in favor of parents in dozens of cases, ordering the NII to reinstate benefits. Judge Daniel Goldberg of the Jerusalem Regional Labor Court stated that regulation 17 was improperly used, arguing that regulation 7, which pertains to child disability benefits specifically, should have been followed, requiring the NII to provide evidence and allow families to present their case before revoking benefits. Lawyers representing affected families argue that the NII's actions are overly harsh, potentially harming children who rely on these benefits for treatment, and that the scale of fraud is exaggerated.
The NII denies maintaining a "black list" but admits to having a list of diagnosticians under suspicion, which has been shared with the Ministry of Health. The institute also confirmed an internal procedure called "Red Lights," which reportedly prioritizes institutional diagnoses over private ones and requires children to undergo evaluations by NII-appointed diagnosticians, a shift from previous policy. The Ministry of Health stated it cooperates with the NII on diagnostic reliability and refers potential criminal activity to law enforcement.