Israeli Court Approves Class Action Against Health Funds Over Alleged Illegal Benefits to Large Families

An Israeli labor court in Tel Aviv has authorized a class action lawsuit against the country's health funds, following a petition by four mothers. The lawsuit challenges what they describe as illegal economic benefits granted to large families, specifically exemptions from payments for supplementary health services starting from the fourth child. These supplementary services, known as Shaban, include treatments not covered by the basic health basket, such as certain medications, dental care, complementary medicine, additional medical opinions, and overseas surgeries.

The plaintiffs argue that these exemptions unfairly burden other insured members who unknowingly subsidize these benefits, which can amount to thousands of shekels annually for families with many children. The case highlights demographic disparities, noting that ultra-Orthodox Jewish women have an average of 6.64 children, religious Jewish women 3.92, Arab women 2.82, and secular Jewish women 1.96. Consequently, ultra-Orthodox and religious families are more likely to receive these exemptions, while secular and Arab families generally pay full fees.

The lawsuit contends this constitutes discrimination favoring the ultra-Orthodox and, to a lesser extent, religious communities, with secular families effectively subsidizing them. It also criticizes the health funds for prioritizing benefits to large families over other vulnerable groups such as pensioners, chronically ill patients, new immigrants, disabled individuals, and income support recipients.

The court's approval signals a reasonable chance that the plaintiffs' claims will succeed, urging the health funds to reconsider the legality of the discounted family rates and the possibility of canceling them. The plaintiffs are mothers Gal Berkovich Pizanti, Tamar Kaf, Shira Bergman, and Maayan Weiner Shbalman, represented by attorneys Dr. Hagai Kalai and Lior Sokol from Kalai Rozen & Co.