Israel's sick fund drug spending slows down

Despite increased budgeting for new drugs added to Israel's National Health Insurance basket of health service and increased sick fund activity in non-basket sales of drugs, overall spending by sick funds on drugs is in decline, according to the PHARxMA Israel Drug Bulletin.

The primary activity of the Israeli sick funds, representing 64% of overall expenditure, is in the mandatory provision of reimbursable drugs that are included in the NHI framework. Although a 10% additional government funding - equivalent to NIS700.0 million ($164.6 million) - was allocated for mainly new prescription drugs in the 2006/07 fiscal year, there was no requirement for the sick funds to use the sums on drug purchases.

Meanwhile, patient contributions to drug purchasing via co-payments for reimbursable drugs have passed the 50% mark in 2006. In 1992, the patient's share of drug costs was as little as 27.2%. The issue of reversing this trend was a campaign issue in the Israeli general election last year, with the pensioners' party gaining seven seats in the 120-member Knesset.