Health funds face class action lawsuit over Haredi-focused benefits

The Tel Aviv Regional Labor Court has approved a class action lawsuit against four health funds — Clalit Health Services, Maccabi Healthcare Services, Meuhedet, and Leumit — following an arrangement that grants an exemption from payment for supplementary insurance (SHABAN) programs starting from the fourth child in a family.

The request was filed by mothers Gal Berkovich-Pizanti, Tamar Kaf, Shira Bergman, and Maayan Weiner-Shvelman. They argue that the arrangement results in insured persons of the same age paying different amounts for SHABAN programs, which contradicts the provisions of the National Health Insurance Law. They claim this constitutes discrimination in favor of the Haredi public. The approved group includes health fund members from the 7 years preceding the filing who have up to 3 children insured in these programs.

In her decision, Judge Ofira Dagan-Tuchmacher determined that the plaintiffs have established a cause of action with a reasonable chance of success. The court noted that the law requires a uniform price for each age group, whereas the existing arrangement grants an exemption for the fourth child and subsequent children.

The health funds argued that the arrangement is intended to alleviate the economic burden on large families and does not constitute prohibited discrimination. They also emphasized that their bylaws have been approved over the years by the Ministry of Health. The Ministry of Health noted that the arrangements were approved in the past and that it intends to review the benefit in the future, though it provided no specific timetable.

Alongside the approval of the lawsuit, the court emphasized that the demand for retroactive compensation or reimbursement raises significant difficulties, partly because the funds relied on existing regulations and regulator approval. Therefore, it has not yet been determined whether group members will be entitled to financial compensation.

The court recommended that the funds re-examine the legality of the discounted family tariff and the possibility of canceling it, stating that if such an arrangement is justified, the appropriate way to regulate it is through legislative amendment. The plaintiffs' attorneys were awarded legal fees of 7,000 shekels plus VAT from each of the four health funds.