Israel's Bituah Leumi Faces Soaring War-Related Costs

Israel's National Insurance Institute (Bituah Leumi) is grappling with a significant increase in expenses due to the war, with costs projected to reach 3.5 billion shekels by 2025. Since October 7, over 87,000 individuals have been recognized as victims of hostilities, with approximately 40,000 sustaining physical or psychological disabilities. The conflict has also resulted in the deaths of 1,029 civilians, including 63 children, and 1216 orphans.

To manage these escalating costs, Yaron Shalom, Deputy Director of the Disability and Rehabilitation Department at Bituah Leumi, stated that the state must find additional funding sources to meet its obligations to those affected by the war. She emphasized that aid should align with the real needs of the victims.

In addition to general war victim support, a specific aid package is available for Israelis who were held captive. Following legislative changes, these individuals are now entitled to a monthly stipend of 9,000 shekels. They may also receive supplementary assistance for housing and vehicles, lifelong psychiatric care, and alternative therapies, with their benefit unaffected by returning to work.

Bituah Leumi's expenditures have dramatically risen, from approximately 800 million shekels in 2023 to 2 billion in 2024, and are expected to hit 3.5 billion in 2025. These figures exclude nearly 75 million shekels allocated for rehabilitation services.

Shalom also detailed the disability determination process, which involves medical committees assessing the percentage of disability and the likelihood of improvement. Disabilities may be temporary if recovery is anticipated, potentially becoming permanent if no positive progress is observed. Currently, nearly half of those recognized as disabled have been granted permanent status.

In response to the growing number of beneficiaries and increased spending, Bituah Leumi is seeking new funding streams. The institute also proposes developing incentives for war victims to re-enter the workforce, allowing them to work without losing essential support and receive increased benefits if their condition worsens.