Israel set 2001 health budget at 1999 prices

The Israeli government estimated this year's NIS19.18 billion ($4.53billion) budget for financing the basket of services provided under the National Health Insurance Law according to 1999's health price index.

While the 2001 budget includes a 1% (NIS186 million) rise for the financing of new drugs and technologies, and 2% more for general services, it ignores a Knesset (parliament) investigatory committee which, in 1999, recommended that the procedure for updating the NHIL services basket should take account of demographics, technological advances and health price inflation, says the Marketletter's local correspondent.

The lack of an updating mechanism has created deficits for the sick funds, which have sought in the High Court a requirement that the government should adopt a formula which reflects real costs. In an interim judgement, the Court instructed the Ministers of Health and Finance to try to reach agreement on the issue but, reportedly, they have yet to discuss it.