Tel Aviv Labor Court Approves Class Action Against Health Funds Over Family Discount Policy

The Tel Aviv Labor Court has authorized a class action lawsuit against Israel's four major health funds, Maccabi, Leumit, Meuhedet, and Clalit, alleging they unlawfully favor large families by exempting payments starting from the fourth child. The court recommended the health funds reassess the legality of the discounted family rate and consider its cancellation.

The lawsuit was filed by four mothers who claim this policy violates the equality principle enshrined in the National Health Insurance Law by granting disproportionate benefits to families with many children. They argue this results in some insured individuals receiving additional health services at the expense of others, constituting unlawful discrimination. Data from the Central Bureau of Statistics in 2020 was cited, showing that the fertility rate among Haredi women is 6.64 children per woman compared to 1.96 among secular women, indicating the benefit disproportionately favors the Haredi community. The plaintiffs also contend that the number of children is not a relevant criterion for assessing economic status and that the law prohibits consideration of economic factors.

The health funds defended their policy by stating it was approved by the Ministry of Health, which declined to take a formal position but announced plans to form a team to review the exemption benefit prospectively. The court noted that the Ministry’s 2005 authorization allowing family tariffs conflicts with the explicit provisions of the National Health Insurance Law requiring premiums based on age. While the court acknowledged the health funds acted under regulatory guidance, it found the plaintiffs presented a plausible claim with a reasonable chance of success.

The court approved proceeding with the class action but noted difficulties in awarding retroactive compensation due to the funds’ compliance with regulator directives. However, since the Ministry of Health no longer supports the exemption and the plaintiffs seek future operational remedies, including abolishing the discounted family rate, the case will continue. The lawsuit was filed by Gal Berkovich Pizanti, Tamar Katz, Shira Bergman, and Maayan Weiner Shbalman, represented by attorneys Hagai Kalai and Lior Sokol.