There are recent regulatory changes that will significantly impact long-term care insurance conditions in Israel, and here is important information regarding these changes. At the outset, it’s important to note that for the past few years, the Finance Ministry has blocked the sale of private Siudi (nursing care) policies. Of course, for anyone who purchased a policy before that, the policy will be honored in full.

The long-term care insurance offered by the health funds in Israel plays a crucial role in providing financial support to those who require rehabilitation and assistance due to nursing care needs. With nearly half of Israel's residents enrolled in group long-term care insurance, it's imperative to understand the implications of these changes.

Starting January 1, 2024, the benefits in long-term care insurance were reduced by almost 25%, along with other reductions in the insurance conditions. These measures are intended to serve as an interim remedy while the government searches for a long-term solution to the crisis.

One of the key changes will be a reduction in the monthly compensation paid to policyholders who become nursing patients. For example, the monthly compensation for insured individuals who joined up to the age of 49, (the majority of the insured population), will be NIS 5,000 instead of NIS 6,226. Additionally, the Capital Market Authority has decided to zero out the increase in the price index, further reducing the basic allowance by 10%. Please note that these reductions will not apply to individuals already defined as nursing patients.

Furthermore, the Capital Market Authority has authorized insurance companies to operate without any insurance liability, which may lead to faster depletion of the funds. This change will impact all health insurance funds but will have a more significant effect on Clalit, where monthly insurance premiums will increase by an average of 10%, with a substantial 50 shekel per month increase for insured individuals over the age of 71.

While these changes aim to prevent the immediate collapse of long-term care insurance, they are considered temporary solutions. The underlying trends, such as an aging population and increased life expectancy, are unlikely to change, and these challenges for the insurance industry will persist.

We understand that these changes may raise concerns and questions. Our commitment is to keep you informed and support you during this challenging period. We encourage you to review your current insurance coverage, consider your options, and reach out to us with any questions or concerns you may have.

The government has pledged to establish a team to examine the situation and provide recommendations by July. However, it remains uncertain whether a solution will be found within the next year to prevent millions of insured individuals from losing their long-term care insurance coverage.

Egert & Cohen recommends that anyone who doesn’t have a private Siudi policy, should reach out to his/her Kupat Cholim and join the group plan. This is despite the decreased coverage - it’s all that’s available at the moment.

Egert & Cohen will continue to monitor this situation closely and keep you updated on any further developments. Your well-being is our priority, and we are here to assist you in navigating these changes.

For more information: WhatsApp: 054-967-2757   Tel: 02-622-7999  Email: info@egertcohen.co.il
Website: https://egertcohen.co.il

Egert & Cohen have been providing insurance solutions to cover homes, cars, travel and health since 1985!