Key points
- Israel runs a Bismarck system: national health insurance under the 1995 law, delivered by four competing non-profit health funds.
- Coverage is universal: every resident must join one of the four funds — Clalit, Maccabi, Meuhedet or Leumit — and no fund may refuse a member.
- Care is delivered by the health funds' own clinics and by public and private hospitals; patients choose their fund and may switch between funds.
- There are no co-payments for primary care, preventive care or hospital admissions; specialist visits and prescriptions carry co-payments with caps and exemptions, and households paid 20.5% of health spending out of pocket in 2023 (WHO Global Health Expenditure Database).
- Life expectancy at birth was 83.8 years in 2023, and health spending was 7.6% of GDP in 2024 (OECD Health at a Glance 2025).
Direct answer: Israel runs a Bismarck system: national health insurance under the National Health Insurance Law of 1995, delivered by four competing non-profit health funds — Clalit, Maccabi, Meuhedet and Leumit. Coverage is universal: every resident must join one of the four funds, and no fund may refuse a member. Care is delivered by the health funds' own clinics and by public and private hospitals; patients choose their fund and may switch between funds. There are no co-payments for primary care, preventive care or hospital admissions; specialist visits and prescriptions carry co-payments with caps and exemptions, and households paid 20.5% of health spending out of pocket in 2023 (WHO Global Health Expenditure Database). Life expectancy at birth was 83.8 years in 2023, and health spending was 7.6% of GDP in 2024 (OECD Health at a Glance 2025).
At a glance
| Item | Detail |
|---|---|
| Model | Bismarck — national health insurance (four health funds) |
| Who pays | An income-related health tax collected by the National Insurance Institute, plus government funding; the funds are paid by capitation |
| Who delivers | The four health funds' clinics for primary care, and public and private hospitals for specialist and inpatient care |
| What is free at the point of use | Primary care visits, preventive care, cancer screening and hospital admissions carry no co-payment; specialist visits and prescriptions do |
| Life expectancy at birth | 83.8 years (2023, OECD Health at a Glance 2025) |
| Health spending | 7.6% of GDP (2024, OECD Health at a Glance 2025) |
| Source for the model and coverage | Commonwealth Fund — Israel country profile |
Figures are a snapshot checked 7 November 2026, not a live feed. No country is ranked as best.
How the system works
The National Health Insurance Law came into force on 1 January 1995 and made membership of one of the four health funds compulsory for all residents. Each fund must offer the same defined health basket — hospital and primary care, surgery, maternity care, mental health care, prescription medicines, physiotherapy and more — and the basket is reviewed and updated every year. The funds are non-profit and may not refuse any resident who applies; members may switch from one fund to another.
The first point of contact is the family doctor at a health fund clinic. The funds provide primary care through their own clinics, and refer patients to specialists and hospitals. Funding flows through the National Insurance Institute (Bituach Leumi), which collects the health tax and distributes it to the funds by a capitation formula based on the number of members, their age distribution and other factors, with direct government funding on top.
Who pays, and what people pay
The system is funded by an income-related health tax of 3.23% of income up to 60% of the average wage and 5.17% above that threshold (rates effective 2025), collected by the National Insurance Institute, plus government funding from general taxation. There are no deductibles and no co-payments for primary care, preventive care or hospital admissions. What people do pay is a flat co-payment for specialist visits — roughly NIS 25 to 34 per visit, with quarterly caps at household level — and a co-payment for prescription medicines, with a minimum of about NIS 17 per prescription and coinsurance capped at 15% for patented medicines and 10% for generics. Many residents also hold supplementary insurance from their health fund, covering services outside the basket.
What is free, and what is not
Primary care, preventive care, cancer screening and hospital admissions are free at the point of use, with no co-payment. The margin is specialist care, prescription medicines and services outside the basket — most adult dental care, for example, is not covered, while children’s preventive dental care is free and restorative treatment carries a small co-payment. The boundary is softened by exemptions and caps: no co-payments for people with severe illness, low-income children and older adults receiving income support, and monthly caps on what chronically ill people pay for specialist care and prescriptions.
How it compares
Israel spends 7.6% of GDP on health — below the OECD average of 9.3% — and $4,352 per person, below the OECD average of $5,967 (USD PPP, 2024). Its life expectancy of 83.8 years is 2.7 years above the OECD average of 81.1 years (2023, OECD Health at a Glance 2025). Israel is one of nine OECD countries that spend less than the average but achieve higher life expectancy than the average, and its avoidable mortality of 134 deaths per 100,000 people is among the lowest in the OECD. Its distinguishing feature is the combination of universal cover with competing funds: four non-profit insurers, free choice between them, and a single defined basket that none of them may dilute. Compare countries side by side in the Health System Comparison tool, or read the other profiles in the country index.
Frequently asked questions
What is a Kupat Holim?
A health fund: one of the four non-profit insurers — Clalit, Maccabi, Meuhedet and Leumit — that deliver national health insurance in Israel. Every resident must join one, each must offer the same defined health basket, and none may refuse a member.
Do I pay for GP visits?
No. There are no co-payments for primary care visits, preventive care, cancer screening or hospital admissions. Co-payments apply to specialist visits and prescription medicines, with quarterly and monthly caps and exemptions for people with severe illness, low-income children and older adults on income support.
What is the health basket?
The government-defined list of services and medicines every health fund must provide to its members — hospital and primary care, surgery, maternity care, mental health care, prescription medicines and more. It is reviewed and updated every year.