Israeli Health Funds' Deficit Drops 44% in One Year
Translated & summarized from Davar by baba
Israel's Ministry of Health reported that the combined deficit of all health maintenance organizations (HMOs) fell by 44% to 194 million shekels in 2025, with overall revenues increasing by 6.5%. While most HMOs reported surpluses, Clalit still had a deficit of 364 million shekels, though this was an improvement. The national health basket cost rose 6% to 80.5 billion shekels, with inpatient care costs increasing. The report also highlighted a decrease in patient co-payments over the last decade.
The story in 6 lines · by baba
- Israel's health funds' combined deficit dropped 44% to 194 million shekels in 2025.
- Overall revenues for health funds increased by 6.5% in the same year.
- Maccabi and Meuhedet reported surpluses, while Clalit's deficit decreased.
- The national health basket cost rose 6% to 80.5 billion shekels in 2025.
- Patient co-payments as a percentage of health basket costs declined over the past decade.
- Ministry of Health Director General cited financial stabilization and reduced public burden.
Israel's Ministry of Health reported on Tuesday that the combined deficit of all health maintenance organizations (HMOs) decreased by approximately 44% in 2025, falling from 346 million shekels in 2024 to about 194 million shekels in 2025. Overall revenues for the HMOs grew by about 6.5%, leading to a reduction in the deficit-to-revenue ratio from 0.4% to 0.2%.
Maccabi and Meuhedet health funds finished 2025 with surpluses of 111 million and 53 million shekels, respectively, while Leumit reported a surplus of 6 million shekels. Clalit, however, ended the year with a deficit of approximately 364 million shekels, an improvement from its 542 million shekel deficit in the previous year. This Clalit figure includes both the HMO and its affiliated hospitals, whose deficit was reduced from 3.2 billion shekels in 2024 to 2.8 billion shekels in 2025.
The total cost of the national health basket in 2025 was approximately 80.5 billion shekels, a 6% increase from 75.8 billion shekels in 2024. Inpatient care costs saw a real increase of about 3.5%, accounting for 43% of the HMOs' total expenses, up from 42.1% in 2024. Other significant operational expenses included pharmaceuticals and medical equipment (17.9%) and salaries (25.4%).
The report also noted a decade-long decline in the proportion of health basket costs covered by patient co-payments, dropping from 6.13% in 2016 to about 5.5% in 2025. Factors contributing to this include the addition of expensive medications, particularly for cancer patients, to the health basket, a mental health reform with lower co-payments for hospitalization, a shift in government support to the cost of the basket, HMO responsibility for work accident victims who are often exempt from co-payments, and discounts for vulnerable populations like the elderly and Holocaust survivors.
Moshe Bar Siman Tov, Director General of the Ministry of Health, described the report as indicative of a "positive trend of financial stabilization and significant reduction in the aggregate deficit of the health funds, while continuing to strengthen the public system and reduce the economic burden on the public." He emphasized the government's commitment to the health system's resilience and accessibility, while acknowledging the need to continually assess budget bases and support levels in light of demographic challenges and rising morbidity.
