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Following the government’s decision to raise copayments for medicines, services, and medical technologies included in the national healthcare basket, Taub Center researchers examined the proposal and its expected implications. According to the researchers, while such a move may increase state revenues, it is likely to place a greater burden on most of the population, potentially harming public health — especially for those with chronic illnesses, older adults, and the middle class. More specifically, higher copayments would likely increase the phenomenon of foregoing medicines and medical services due to cost. For example, in the Arab population and among low-income individuals, the share of those who forgo medicines for financial reasons is twice the national average. The researchers warn that this could exacerbate health inequalities.
The researchers — Prof. Gabi Ben Nun, Prof. Nadav Davidovitch, and Nir Kaidar — urge decision makers to reject the proposed copayment increase and instead consider more progressive and efficient funding alternatives in order to protect public health.
Prof. Nadav Davidovitch, one of the policy paper authors, noted: “There is a renewed discussion about the role of copayments in financing national health expenditure. Beyond the important empirical question of whether copayments are intended as a tool to promote rational use of medicines, reduce excess demand, and restrain health spending, or whether they serve as a barrier with negative impacts, it is important to remember that this is a regressive form of financing that increases inequality, and that there are more progressive alternatives. Another important point is that the additional revenue from higher copayments is not necessarily earmarked for the health system, which could set a troubling precedent.”
The Taub Center for Social Policy Studies in Israel is an independent, non-partisan socioeconomic research institute. The Center provides decision makers and the public with research and findings on some of the most critical issues facing Israel in the areas of education, health, welfare, labor markets and economic policy in order to impact the decision-making process in Israel and to advance the well-being of all Israelis.
For further details or to arrange an interview, please contact Chen Mashiach, the Center Spokesperson: 054-7602151.