CEO of 'Kedem' Calls for Structural Reform to Address Israel's National Insurance Crisis

The latest State Comptroller report revealed that Israel's National Insurance Fund is projected to be depleted by 2035, raising significant concern among professionals working with the elderly population. Nachi Katz, CEO of Kedem, the Association for the Advancement of Senior Housing Communities in Israel, stated that these financial challenges have been anticipated for years. He criticized the government for failing to implement necessary structural reforms despite having precise demographic data and recognizing aging as a strategic issue since 2015.

Katz emphasized that the problem is not merely budgetary but deeply managerial and structural. He pointed out that about 40% of health budgets already serve the elderly, a group expected to double in size, especially those over 75 and 80 years old. However, government services remain fragmented and inconsistent, leading to inefficiencies and resource wastage. Katz highlighted a professional distortion in nursing care, where nursing wards are treated as hospitals with strict regulations, hindering the establishment of new facilities. He advocated for regulatory adjustments similar to Western models, where care is more flexible and tailored.

A major challenge, Katz noted, is the lack of a unified government body overseeing elderly affairs. The report found that 70% of government units admitted poor coordination on this issue. He cited Japan as an example of a country with a centralized ministry managing health, welfare, and senior citizen services cohesively. Katz warned that simply injecting more funds into the National Insurance Fund will not solve the crisis. Instead, the Ministry of Finance must shift its perspective to view the elderly as a national resource with high functional potential, supported by social frameworks, employment, and community involvement.

Despite the systemic failures, Katz acknowledged positive examples during recent wartime months, where local authorities and government units demonstrated effective elderly care. He called for a political window of opportunity to enact deep policy changes, including establishing a powerful government forum, such as a dedicated CEOs committee, with executive authority and resource allocation capabilities to manage the entire elderly care system strategically and comprehensively.