Insurance Authority: Long-Term Care Model Unstable, Recommends Savings Plan
Translated & summarized from TheMarker by baba
The story in 5 lines · by baba
- Insurance authority deems current long-term care model unstable.
- Authority recommends shifting to a long-term care savings plan.
- Finance Ministry disputes the instability claim.
- The next government will decide on the insurance model.
- The current plan covers 5.2 million Israelis.
Israel's Capital Markets, Insurance and Savings Authority has determined that the long-term care insurance model provided by health maintenance organizations (HMOs) is not stable. The authority, headed by Amit Gal, recommends replacing the current model with a long-term care savings plan, similar to pension fund models. This change would represent a significant shift in one of Israel's most important financial products, as 5.2 million individuals are insured under the current HMO long-term care plans, which constitute the largest such insurance coverage globally.
The Ministry of Finance, however, disagrees with the authority's recommendation. The ministry believes that after recent tightening of conditions, the existing long-term care insurance model is sufficiently stable. The decision on which model to adopt will be made by the incoming government.
Read the original at TheMarker