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Equality under erosion more income = more health insurance.

When the burden of funding is imposed on households, there is a danger of increased inequality, as not all households can afford to pay more. There is cause for concern that eventually the increasing gaps in ability to pay will result in gaps in health among different social groups.

Between 1998 and 2007, the share of extra insurance in household expenditures on health increased from 14% to 25%.

All households paid more--but those whose incomes were larger were able to purchase more and better extra health insurance, while those whose incomes were smaller purchased much less.

In 2007, for example, households in the second lowest income bracket (decile) spent, on average, NIS 70 per month on extra health insurance, while households in the sixth income bracket (decile) spent NIS 164, and those in the top income bracket--NIS 313.

The gaps between high and low income households were especially large when it came to extra insurance marketed by insurance companies: in 2007, households in the top income bracket purchased insurance premiums at an average cost of NIS 154 per month, while households in the second lowest income bracket purchased insurance premiums at an average cost of NIS 15. Moreover, the gaps between households in these two income brackets grew considerably in the course of the decade. In 1998, those in the top income bracket purchased extra insurance premiums at a cost 4.2 times larger than the amount spent by the second income bracket; in 2007 the ratio was 10:1.

It should be added that these figures represent averages for each income bracket--averages that conceal the fact that in the lower income brackets, many households do not purchase any extra health insurance at all.
Total Household
Expenditure on
Extra Health
Insurance
2nd, 6th and
Top Income
Brackets,
1998-2007
By net income
decile for
households
In NIS, 2007
prices

                  1998   1999   2000   2001   2002   2003

2nd income
bracket

Extra insurance   11     4      9      7      13     14
from
insurance
companies

Extra insurance   18     22     28     37     41     42
from health
funds

Total extra       28     26     37     44     53     56
insurance

6th income
bracket

Extra insurance   23     11     29     20     28     31
from insurance
companies

Extra insurance   34    49      54     71     74     77
from health
funds

Total extra       57    60      84     91     102    108
insurance

Top income
bracket

Extra insurance   46    76      99     82     107    123
from insurance
companies

Extra insurance   65    79      95     103    113    119
from health
funds

Total extra       111   154     194    185    220    242
insurance

Total Household
Expenditure on
Extra Health
Insurance
2nd, 6th and
Top Income
Brackets,
1998-2007
By net income
decile for
households
In NIS, 2007
prices

                  2004   2005   2006   2007

2nd income
bracket

Extra insurance   3      6      15     15
from
insurance
companies

Extra insurance   45     53     54     55
from health
funds

Total extra       48     60     69     70
insurance

6th income
bracket

Extra insurance   33     39     47     52
from insurance
companies

Extra insurance   88     95     95     111
from health
funds

Total extra       121    134    142    163
insurance

Top income
bracket

Extra insurance   113    174    170    154
from insurance
companies

Extra insurance   130    137    143    116
from health
funds

Total extra       243    311    313    313
insurance

Source: Adva Center analysis of figures received courtesy CBS
Consumption Department.
COPYRIGHT 2008 Adva Center
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2008 Gale, Cengage Learning. All rights reserved.

 
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Title Annotation:Israel: A Social Report 1998-2007
Publication:Israel: A Social Report
Article Type:Report
Geographic Code:7ISRA
Date:Dec 1, 2008
Words:539
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