The Economic Implications of PTSD in Israel

The economic burden of PTSD in Israel could reach ~197 billion NIS ($53.2 billion) over the next five years – similar to the budget increase requested by the Ministry of Defense

A new economic study conducted by the SFI Group and MAPS Israel reveals the economic impact of PTSD on the Israeli economy. The economic study, part of the HealingOct7 initiative launched following the October 7th attacks, presents a comprehensive picture of the expected costs to the Israeli economy caused by the continued rise in cases of PTSD  in Israel due to the ongoing war.

Key findings of the economic study indicate significant economic implications. According to the study, the economic cost of an individual with PTSD is estimated at approximately 1.86 million NIS ($485K) over their lifetime. This amount ranges between 1.8- 2.2 million NIS ($485K-594K) depending on official recognition and benefit eligibility. The additional cost of PTSD to the Israeli economy over the next five years is estimated to be ~197 Billion NIS ($53.2 Billion) according to current forecasts – similar to the budget increase requested by the Ministry of Defense for the next four years, standing at approximately 220 Billion NIS ($59 Billion).

The economic implications of PTSD include rising healthcare expenditure and an increase in National Insurance benefits (18%), direct impact on employment and productivity (74%), and an increased risk of comorbid mental disorders and addictions (8%). The cost sources of PTSD are divided between the individual and their family (30%), the state, due to a decrease in tax revenues and an increase in public services (30%), and a decrease in labor productivity at the national level (40%)