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HEALTH INSURANCE

Swiss health insurance premiums to rise four percent on average in 2018

Compulsory health insurance premiums are set to rise again in 2018, the government announced.

Published: 28 September 2017 16:19 CEST

Swiss health insurance premiums to rise four percent on average in 2018

Photo: ginasanders/Depositphotos

The average four percent increase applies to what is known as the basic or standard premium, the compulsory health care premium for adults aged over 18, communicated the government on Thursday September 28th. The basic premium entitles the holder to an excess of 300 francs.

Basic health insurance is compulsory in Switzerland and premiums go up each year, set by the insurance companies but with some consultation with the government.

People can choose their 'excess' – the higher the excess the lower the monthly premium, and vice versa.

The 4 percent increase for premiums in 2018 however is higher than the average increase of 3.7 percent over the last ten years.

Premiums for children are set to rise at an even higher average in 2018 than for adults, 5 percent, while young adults aged 19 to 25 will be paying 4.4 percent more in 2018 for their premiums on average.

In eight cantons the increase is only three percent but the average increase in the price of premiums in the cantons of Geneva, Neuchâtel, Vaud and Valais is 5 percent, raising the national average.

The government argued that the increases were necessary because “premiums were too low for some insurers in recent years.” The higher costs, argued the government, are needed to cover the shortfall.

“The reserves fell below the prescribed minimum. Part of this year's premium increase is to restock the reserves,” communicated the government.

“Health care costs are rising as a result of demographic development, medical and technical progress and volume growth,” added the government in its statement.

Approximately 80 percent of the cost of compulsory medical insurance (LaMal) is divided into four main areas: patients treated through GP practices, inpatient care, outpatient care and the cost of prescribed medicines that health insurance firms must cover.

In 2014, 62 percent of the electorate rejected plans in a referendum to create a public-run health insurance scheme to replace the current private system. In a 2007 referendum, 71 percent rejected similar reforms.

For more information on how to calculate how your health insurance may be affected, visit www.priminfo.admin.ch

READ MORE: Swiss reject public health insurance plan

Taxes to work permits: Who deals with what in Switzerland?

Unless you are a hermit and live off the grid, you will, sooner or later (probably sooner), have to deal with administrative processes of one kind or another.

In this respect, Switzerland is no different from any other nation, with the only difference being that because it is small and well-organised, the bureaucratic machine is running smoother here than elsewhere.

On the plus side, because it is fairly efficient, dealing with various public entities is probably less of a hassle in Switzerland than in less tidy administrations.

If you are a foreigner, especially a newly arrived one, you may not yet be familiar with the workings of various government agencies — in other words, who does what.

The first thing to know is that very few tasks that are likely to affect you personally are done at the federal level; most administrative processes are handled by cantons and municipalities.

These are some of the most important services, and who is responsible for providing them:

Pensions: federal and cantonal

The Federal Department of the Interior regulates and supervises obligatory pension plans, while the Federal Social Insurance Office implements the scheme.

Your pension, however, will be paid by your canton’s social insurance office.

Work / residence permits: cantons

Permits are delivered by your canton, though the application procedure is different depending on whether you are an EU / EFTA national or a citizen of a third country.

Cantonal authorities are also responsible for renewing / extending expiring permits.

Taxes: cantons

As the cantonal tax office calculates how much taxes you owe in any given year, your declaration must be sent to cantonal authority.

They will collect the cantonal, federal, and municipal taxes, distributing the money proportionally among them.

Driver’s license / car registration: canton

Anything related to driving — tests, licenses, vehicle registrations, and inspections — is the responsibility of cantonal automobile services.

Health insurance subsidies:canton

If the monthly premiums of your obligatory health insurance (KVG / LaMal) exceed 8 percent of your income, then you may qualify for subsidies (premium reductions) from your canton of residence.

You can apply for them here.

READ ALSO: How do I apply for healthcare benefits in Switzerland?

Social aid: canton and municipality

Welfare assistance comes under the responsibility of your canton, which will consider your application and determine if you are eligible for financial help.

However, you should submit your application for assistance to your municipality, which will then transfer it to the cantonal welfare office.

As you can see, most public services are managed by cantons, so you may be wondering what is the role of your local municipality / commune?

They do their share as well.

For instance, they manage a register of residents, organise and maintain their own fire brigades, civil defence units and police forces (the latter two mostly in bigger communes).

They are also responsible for schools on their territories, as well as local energy supplies, municipal roads and parking, waste management, and infrastructure planning and upkeep, among other tasks.

READ ALSO: What exactly does your Swiss commune do?

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