The missile barrages launched by Iran earlier this year caused record destruction in Israel, with more than 53,500 damage claims filed in just 12 days of fighting, the Israel Tax Authority said, according to a report by Ynet on Thursday.
The Islamic Republic risks losing the ability to fund its health system, said Reza Jabbari, a member of parliament’s presiding board, during a meeting with Health Minister Mohammadreza Zafarghandi.
“Based on submitted reports, 70 percent of insurance resources are spent on medicine and equipment, which could be significantly reduced through strategic purchasing,” Jabbari added.
Without reform, he said, demographic and dietary pressures could create in health care the same shortage already seen in Iran’s energy sector.
Iran may soon face a surge in chronic and non-communicable diseases, Jabbari warned.
“The country will no longer be able to pay health costs if the current situation continues.”
Debt to the pharmaceutical supply chain
The warning came a day after Shahram Kalantari, head of Iran’s Pharmacists Association, described the government as “the main debtor to the pharmaceutical supply chain.” Insurers have failed to pay most of their obligations this year, he said.
“Health Insurance owes us $100 trillion rials ($100 million), Social Security owes $150 trillion rials ($150 million), and the Daroyar plan owes $90 trillion rials ($90 million) since July,” Kalantari said Tuesday.
The drug industry can only remain stable for 170 to 180 days if payments continue to be delayed, he cautioned. After that, shortages of essential medicines are likely.
Kalantari has previously said 80 percent of pharmacies in the country are on the brink of bankruptcy due to mounting debts from insurers and subsidy programs.
Rising burden on households
Other lawmakers have also highlighted the growing strain on families. Fatemeh Mohammadbeigi, deputy chair of the parliament’s Health Committee, said Iranians now pay about 70 percent of medical costs out of pocket.
She described the insurance system as “inefficient and near bankruptcy” due to poor management and a failure to consolidate coverage.
“This figure should be reversed, with people paying 30 percent and the government 70 percent,” Mohammadbeigi said earlier this month. Falling insurance coverage particularly harms low-income groups, she added.
Labor activists have also pointed to shrinking access. Abbas Shiri, a board inspector for the National Construction Workers’ Union, said on August 2 that fewer than 50,000 workers have gained insurance since 2020, leaving hundreds of thousands waiting.
The combined warnings from lawmakers, pharmacists, and labor groups underscore a health system burdened by debt, demographic pressures, and inadequate insurance coverage, with officials conceding that sustainability is in doubt.
“The direct damage is now estimated at no less than NIS 4 billion ($1.1 billion), and the indirect damage, which has yet to be calculated, will amount to several billion more,” Tax Authority Director Shay Aharonovich said.
Major institutions, including the Weizmann Institute of Science and Soroka Medical Center, suffered heavy losses, while many businesses were forced into prolonged shutdowns, he added.
Israel launched the 12-day air campaign against Iran in June, with brief support from the United States, targeting nuclear sites and killing senior military officials and nuclear scientists. The strikes crippled much of Iran’s air defense network and damaged a significant portion of its ballistic missile arsenal, Israel said.
Property losses made up the bulk of claims. Of 41,962 filings for damaged structures, 36,928 involved private residences, with hundreds of homes completely destroyed.
The state will have to fund alternative housing for displaced families until rebuilding can be completed, a process expected to take months if not years, officials said.
The commercial sector was also hit hard. Businesses filed 5,108 claims, including hundreds of shops and offices destroyed beyond repair. Vehicle damage reached unprecedented levels, with at least 5,400 cars damaged or destroyed.
9,803 claims were submitted through a fast-track process, while 28,129 direct-damage claims were processed within two months, according to the authority.
So far, the Property Tax Compensation Fund has paid out NIS 1.6 billion ($430 million) for direct damages.
Claims for indirect losses, such as business interruptions, nearly doubled direct claims, reaching 98,569 in just under two weeks of fighting. About 60,000 of these have already been processed, with NIS 1 billion ($270 million) in partial compensation paid.
Officials cautioned that the final tally—factoring in both direct and indirect damages—will end up several times higher than the current estimates, underscoring the unprecedented .
