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Israel Spent More on Health in 2018, Still Below OECD Average

Last year, Israel spent 7.6% of its GDP on health, a 4.3% increase from 2017. The OECD average was 8.8% that same year

Lilach Baumer 13:1019.08.19
The Israeli national expenditure on health for 2018 was NIS 101.2 billion, or 7.6% of Israel's gross domestic product (GDP), according to a report published Sunday by Israel’s Central Bureau of Statistics. The sum represents a 4.3% increase from 2017, but still places Israel under the OECD average, which stood at 8.8% for 2018, and much lower than the U.S. 2018 expenditure, which was 16.9%. Turkey and Luxembourg had the lowest national expenditure in terms of percentage of GDP, 5% and 4%, respectively.


In terms of purchasing power parity (PPP), the Israeli expenditure per person in 2018 was $2,953, lower than most OECD countries. The U.S. expenditure was the highest at $10,586. It is important to note that PPP does not take into consideration factors such as the population's age composition and the country's employment market.


Wolfson Medical Center, Israel (illustration). Photo: Yuval Chen Wolfson Medical Center, Israel (illustration). Photo: Yuval Chen



Israel's national expenditure on health has been relatively stable over the past two decades, remaining in the range of 6.9%-7.4% in 2000-2018. In comparison, the OECD average saw greater changes during the same period, with a range of 7.2%-8.8%.


Of the 2018 expenditure for Israel, the government budget accounted for 40%, and 24% was funded by the national health tax. The overall government funding component, 64%, is under the OECD average of 74%. Another 21% came from direct household payments for medical services and pharmaceuticals, while another 13% was payment for private medical services such as private insurance. Overall, Israelis chose to pay 10.3% more for private medical insurance in 2018.

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