The Capital Markets Authority did not consult with the Ministry of Health before the decision to reduce NIS 1,000 from the monthly payment in the long-term care insurance for the members of the health fund – according to a discussion that took place yesterday (Wednesday) at the State Audit Committee. The chairman of the committee, MK Miki Levy (Yesh Atid) called on the authority to consult with the ministry.
About 4.6 million insured are insured in the long-term care insurance for the members of the health funds. The payment reduction, amounting to approximately NIS 1,100 per month, came into effect last January and will apply to policyholders who will start receiving the allowance. For an insured who joined before the age of 49, the allowance will be reduced from NIS 6,100 to NIS 5,000 per month. It was also decided that the insurance companies will not be required to bear at least 20% of the risk as they have been required until now. Children will only be able to exercise the insurance from the age of 5 instead of 3 as was the case until the Capital Market Authority justified the move by fearing that the insurance funds could collapse due to an increase in the rate of claims. At the same time, some of the cash registers announced the increase in the price of the premium.
Tal Amati Neshri, senior deputy spokesperson for the Ministry of Health: “The Director General of the Ministry of Health reported on the failures that exist in the insurance world. The staff at the Capital Market Authority has not yet consulted with the Ministry of Health. The Ministry of Health has authority over the issues of group insurances and health funds.”
Neshri emphasized that “the increase in premiums and the reduction in benefits may cause people who do not have an alternative solution to remain hospitalized. The director general of the office revealed his opinion and said these things several times. The current situation is not sustainable, we do not want the distortions to continue to exist in the health system. We urge all the relevant parties to change the current situation.”
Chairman of the Histadrut of the Retirees, Shmulik Mizrahi: “The responsibility of the State of Israel for the health of its citizens, and instead of the issue being handled by the health systems, they excluded the nursing issue from the responsibility of the state. The citizen should take care of private insurance, and then the health insurance funds. About 50% of the population has long-term care insurance. The commissioner of the capital market is not really doing his faithful job. He received a mandate to supervise the banks and insurance companies. How did we get to the situation where we were transferred to insurance through the health insurance funds, and four months before the end, a notice was issued that the insurance companies wanted to end the insurance. They raised our premium, the insurance is only until the end of the year, what will happen next year? The uncertainty drives people crazy.”
“Our demand is state long-term care insurance, which the state makes sure to take through social security, and to allow the amount to be increased so that families can take care of their family members in case of long-term care. The issue must not be dropped from the agenda.”
Shira Amior from the Capital Markets, Insurance and Savings Authority said in the discussion that the collective long-term care insurances were closed, with the exception of two that remained for the long-term model, for IDF retirees. Regarding the health insurance funds, she said that in recent years there has been a sharp trend worldwide of an increase in the rate of claims, and this forced the Authority to take action, which resulted in the reduction of the rewards and the extension of the certification period. According to her, “At this point the model has stabilized, but we understand that this is a difficult industry to predict, so a team was established to bring a sustainable overall solution. We adapt to the known trends, if necessary we will update the model.”
Chairman of the committee, MK Miki Levy (Yesh Atid): “Israel’s population is aging rapidly. According to the Taub Center report, in the last decade the population aged 75 and over grew by 9,000 people a year. The expected growth rate is 20-30 thousand people by the year 2040. This situation poses challenges to the country, and old age is characterized by many diseases and the need for nursing care. This requires investments from the state and the inclusion of the factors currently operating in the field of nursing. Can a 50-year-old person sleep peacefully and know that in 25 years he will receive long-term care insurance, and they won’t start the stay exercises in front of him? The committee believes that the state should focus on an inclusive holistic solution, and therefore will continue to hold follow-up discussions on the issue and meetings with the Capital Market Authority demanding that the Ministry of Health participate in the discourse of decision-making on the issue of long-term care insurance.
MK Merav Cohen (Yesh Atid): “This is the most important issue in the world in a reformed country. People have been paying insurance all these years, and now their monthly allowance is being reduced by NIS 1000. This should have opened editions. Each time a patch is put on. No sustainable insurance coverage has yet been found that guarantees people a sustainable solution. What is the product that guarantees coverage for sick people who come to a nursing situation? It should be a basic service product, like education for example. The reality is that only those who have a lot of money will be able to cope with reality. Those who don’t – enter an impossible situation with their family members. The ones who pay the price are those who don’t go out to demonstrations, they don’t have lobby and they are not interviewed in the media. These people are transparent. The Israeli government and the Knesset need to think and see what insurance solution they are offered. Until then, it will remain at the level of patchwork.”
