How to Identify and Stop Paying Double for Health Insurance in Israel
Hundreds of thousands of Israelis pay for redundant health insurance coverages, resulting in costly duplicate policies. Understanding the differences between state health baskets, health fund supplementary services, and commercial first-shekel policies helps consumers significantly reduce expenses.
Hundreds of thousands of Israelis pay thousands of shekels annually for duplicate health insurance coverages that offer no added value when needed. The Israeli health care system consists of three main layers: the state health basket funded through national health insurance, supplemental health services (SHN) provided by health maintenance organizations covering about 80% of the population, and commercial health insurance sold by private insurance companies.
Double insurance occurs when an individual pays two or more entities for the exact same indemnity coverage, such as surgery insurance, while being eligible to claim reimbursement only once. A major distinction exists between first-shekel policies, which bypass the health fund entirely to finance private surgeries directly, and SHN-complementary policies, which require utilizing health fund rights first and cover deductibles or non-network surgeons. Ministry of Health data shows that first-shekel policies are dozens to hundreds of percent more expensive, ranging from 138 shekels per month for ages 41-50 up to 506 shekels per month for ages 66 and older, compared to 285 shekels for SHN-complementary coverage.
Dispelling Myths and Recent Reforms
A common marketing myth claims that commercial insurance offers better doctors. However, Ministry of Health reports reveal that 76% of active surgeons on insurance company lists also work within health fund SHN frameworks, and among hospital management physicians, the overlap reaches 81%. Furthermore, 87% of doctors on health fund lists actually performed surgeries last year, compared to only 63% on commercial insurance lists.
Following a reform in June 2024, policyholders with first-shekel individual policies and health fund SHN were automatically transferred to the cheaper complementary track, though insurance companies and agents actively marketed shifts back. Consumers are advised to check the government's "Har HaBituah" website to identify overlapping policies, eliminate redundant coverage between group workplace plans and private policies, and consult professionals before canceling any long-standing policies.
