Bituach Leumi stripped of important powers: what will change for citizens

Israel's Supreme Court has ruled that Bituach Leumi can no longer influence the appointment of doctors to medical committees that hear disputes over disability and benefits. The decision came after five years of proceedings on a petition by the Bar Association. The state was given 12 months to carry out the reform.

Israel's Supreme Court unanimously ruled to strip Bituach Leumi (the National Insurance Institute) of the right to take part in appointing doctors to the medical committees that hear disputes over recognition of disability and entitlement to social benefits. The decision came after five years of litigation, initiated by a petition from the Israel Bar Association and two public organizations in 2021. Justices Yael Willner, Noam Sohlberg and Alex Stein concluded that the previous system created an institutional conflict of interest: Bituach Leumi was at once a party to disputes over benefits and involved in forming the committees that hear those disputes. The state has been given a 12-month transition period to develop a new mechanism for appointing doctors, which will be carried out by the labor minister independently of the institute. The court stressed in particular that the ruling does not imply recognition of wrongdoing by specific doctors or Bituach Leumi employees, but is aimed at eliminating a systemic problem. For citizens applying for disability benefits, the changes should increase the independence of the procedures, but no automatic increase in payments or review of previously decided cases is envisaged.