In the 1970s, the people of Israel started noticing a problem.
Health care costs were rising dramatically. Pharmaceutical prices and even private insurance plans significantly outpaced inflation. Costs were getting out of control and it wasn’t just the public that had the problem either.
Many companies found it hard to compete internationally. A significant portion of their time and revenue had to be spent on health care instead of developing better products, improving efficiency or expanding their business. Small businesses and the self-employed suffered, too.
Small businesses couldn’t afford to pay for health care unlike their larger counterparts. Savvy entrepreneurs who wanted to change jobs or start their own business were often forced to choose between their independence and their health.