All four health funds show profits [p. 18]

November 14, 2006 22:19
1 minute read.


Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analysis from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief


Clalit Health Services, Maccabi Health Services, Kupat Holim Meuhedet and Kupat Holim Leumit all ended 2004 with a profit, according to a Health Ministry report prepared with help from outside accountants. The report offered a partial explanation: The funds spent about 1 percent less on each member than in the previous year. Although figures for 2005 were not given, the report said the trend of balanced budgets continued. Clalit has been in the black since it signed a "safety net" agreement with the government and instituted an efficiency program in 2002. Leumit had greater income than expenditures for the first time since it agreed to a recovery program in 2003. Maccabi showed a surplus for the third year in a row, while Meuhedet also was in the black in 2004. In the past, most of the funds ran deficits and demanded subsidies from the Treasury. The four health funds spent a total of NIS 24.3 billion in 2004. Most of the money went for hospitalization (44%), salaries (25%) and drugs (20%). Copayments for drugs and medical technologies in the basket of services constituted 33% of the health funds' expenditures on these, reflecting the decline in recent years of income from members. The insurers spent NIS 22 million on providing treatments included in the basket of services. Maccabi spent an average of NIS 741 on each of its members in 2004, compared to NIS 650 for Clalit, NIS 738 for Meuhedet and NIS 723 for Leumit. The trend of more Israelis joining supplementary health insurance plans from their health fund provider has grown, with 81% of Maccabi members participating, 72% for Meuhedet and 64% for Clalit. Leumit had the lowest rate of members joining supplementary health insurance programs; the precise figure was not given. Total income of the four insurers from supplementary health insurance programs was NIS 1.6 billion, equivalent to 7% of the cost of the services provided from the basic basket.

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

The Teva Pharmaceutical Industries
April 30, 2015
Teva doubles down on Mylan, despite rejection