Despite widespread misconceptions, the country’s health care system is not a socialized, single-payer system. Israelis generally accept as almost axiomatic that there should be universal health coverage, with a significant acceptance of government involvement in regulating health care for the sake of redistribution, accountability, and preventing competition from leading to uncontrollable cost overruns. At the same time, there is also recognition of the benefits of keeping a strong measure of competition in the system. This has led to what Glazer describes as “regulated competition”: universal state-financed insurance coverage is provided through four competing health-maintenance organizations.
The HMOs are independent and non-governmental, but highly regulated. Although membership in one of the funds is compulsory – no permanent resident can voluntarily opt out of the system – residents have free choice of which fund they wish to belong to (a change is allowed once every six months), making the HMOs compete for members. HMO members are typically directed by their HMO to a doctor or clinic associated with that HMO, but it is increasingly likely that any private clinic chosen arbitrarily will accept insurance payments from all four HMOs.
via jpost.com
As a Jew I have heard many times that I was hypocritical for not supporting healthcare, but actually the Israeli system works in a different set of axioms. First of all Israel does not have the litigious tradition of lawsuits that adds to the cost of health.
The government instituted universal health coverage in 1995. Prior to that time, there was one health fund that was operated by the country's monolithic labor union (best described as a combination of the AFL-CIO, the Mafia and the Teamsters), and there were three private health funds that were in considerably better financial shape. Now, all four funds are shaky financially but they are managing.So obviously it is a tough business to have Universal Healthcare, but Israel is a small society where it is easier to contain mistakes made by a big government. One of the accusations I have heard is that Israel can have healthcare because they spend American tax dollars. This isn't true. All the money that America pays goes towards the military... which is sad, but a realty.
