Kedem CEO Calls for Structural Reform to Address Israel's National Insurance Crisis
Following the State Comptroller's report warning that Israel's National Insurance Fund may be depleted by 2035, Nachi Katz, CEO of Kedem, the Association for the Advancement of Senior Housing Communities in Israel, has issued a firm professional stance on government preparedness. Katz emphasized that the crisis is not merely financial but fundamentally managerial and structural, criticizing the government's failure to implement long-term strategic reforms despite knowing demographic trends for years. He noted that the government has precise data on the aging population and classified elderly care as a strategic priority since 2015, yet continues to respond with fragmented, short-term measures rather than a comprehensive system.
Katz highlighted that about 40% of health budgets already serve the elderly, a group expected to double in size, especially those over 75 and 80. He criticized inconsistent government decisions that burden and harm the elderly while wasting resources. He also pointed out a professional distortion in nursing care regulations, where nursing wards are treated like hospitals, imposing unnecessary strict standards that hinder the opening of new facilities. Katz advocated for regulatory adjustments to reduce this burden, citing advanced Western models where care is managed under a single responsible administration.
A central challenge, Katz explained, is the lack of a unified government body overseeing elderly affairs, with about 70% of government units admitting poor coordination. He compared this to countries like Japan, where a single ministry integrates health, welfare, and senior citizen services. Katz warned that simply injecting more funds into the National Insurance Fund will not solve the root problem and urged the Finance Ministry to shift its perspective from viewing aging as a cost to recognizing it as a national resource. He stressed the importance of maintaining high-functioning elderly populations through social frameworks, employment, and community contribution.
Despite systemic failures, Katz acknowledged that local authorities and government units demonstrated impressive capabilities during recent wartime months, and professional government staff have quality plans awaiting clear policy leadership and resource allocation. He called the upcoming political opportunity the right moment for a deep conceptual shift to be incorporated into the next government's agenda.
Kedem demands the establishment of a high-level government forum, such as a dedicated directors-general committee, with executive powers to manage the entire elderly care system in Israel. This forum should have authority to reallocate resources strategically and commit to the welfare of senior citizens nationwide.
