Read news from:
Austria
SHARE
COPY LINK
For members

HEALTH INSURANCE

How do I apply for health insurance benefits in Switzerland?

The cost of Swiss health insurance constantly on the rise, many households are hard pressed to pay for the monthly premiums. But some may be able to get financial aid.

Published: 19 October 2022 13:57 CEST
Updated: 22 April 2024 17:59 CEST
How do I apply for health insurance benefits in Switzerland?
You can apply for healthcare subsidy online. Photo by Daria Nepriakhina on Unsplash

Switzerland has an excellent healthcare system, but it certainly doesn’t come cheap.

Its cost has risen over the past 20 years at twice the rate of economic growth, resulting in health insurance premiums that are 90 percent higher today than in 2002.

While premiums will go up throughout Switzerland, residents of some cantons have to pay more for healthcare than their counterparts in others.

READ MORE: EXPLAINED: Why do Swiss healthcare premiums vary so much per canton?

As stated in the Swiss Federal Health Insurance Act of 1994, which made the basic health coverage ((KVG / LaMal) compulsory for every resident, the cost of insurance should not exceed 8 percent of a family or individual income.

What are health subsidies and who is eligible to receive them?

Subsidies are basically reductions in healthcare premiums.

If these premiums eat up at least the aforementioned 8 percent of your income, you qualify for this aid. Before deciding whether you receive the assistance, however, your canton of residence will look not only at your earnings, but at any other financial assets you hold as well as .

So if your income is low but you have plenty of money in the bank in the form of savings or other investments, you will not qualify.

Generally speaking, anyone who is a low earner or has a large number of children, could be eligible for subsidised premiums, though criteria, as well as amounts, may vary from one canton to another.

Note, however, that state subsidies apply only to the obligatory KVG / LaMal insurance, not to any supplemental polices you buy.

How to apply for these benefits?

This process depends on the canton where you live; in all cases, however, it is based on your most current tax declaration, which allows the authorities to see not only how much you earn and how many children you have, but also your total assets.

Some cantons will notify those who are eligible automatically when you file your tax return. In others, you must apply for the reduction yourself every year.

This is a list of all the cantonal authorities responsible for subsidies.

What documents must you provide?

When applying, send in the following:

  • Your last tax decision
  • Your Swiss identity card or your residence permit, as well as those of other members of your family
  • Health insurance policy for you and other members of the household

Some cantons may require other documents as well so inform yourself ahead of time.

If your request for a subsidy is approved, your will not receive any money yourself. Rather, the canton will pay directly to your health insurance carrier.

READ MORE: How people in Switzerland can save money on healthcare

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

HEALTH INSURANCE

How Switzerland’s political parties want to curb surge in health costs

As voters in Switzerland are set to weigh in on two initiatives seeking to lower insurance premiums, the country’s politicians are proposing their own cost-cutting measures.

Published: 3 May 2024 13:02 CEST
How Switzerland's political parties want to curb surge in health costs

On June 9th, the Swiss will cast their votes on two issues aiming, though in different ways, to curb the continually increasing cost of the obligatory health insurance (KVG / LaMal).

One calls for capping the insurance rates at 10 percent of income, while the other provides for a ‘brake’ on health costs, which should evolve according to the economy and wages.

READ ALSO: How Switzerland’s two crucial health insurance referendums could impact you 

Each initiative has its supporters and opponents, but regardless of what happens on June 9th, the issue of health insurance premiums, and health costs in general, will remain the focus of many political debates.

But while everyone in Switzerland agrees that health insurance is too expensive for most people, opinions on how to make it more affordable  differ along the political lines.

These are some of the main views, as reported by Swiss media.

Social Democrats 

The party that has spearheaded the ’10-percent of income’ initiative to be voted on June 9th, is also calling for scrapping of multiple private carriers  in favour of a single, government-run health fund.

The party argues that such a system would help keep the costs low.

Others, however, disagree, saying that lack of competition would have just the opposite effect: instead of reducing costs, it would increase them further.

They also point out that a private insurance system offers more choices  and provides a higher quality of services — including better access to specialists and shorter wait times for medical procedures —  than a public option.

READ ALSO: Could Switzerland ever change to state-run health insurance scheme? 

The Greens

The party has also spoken in favour of a single health provider, in addition to premiums based on income and wealth.

While the idea has gained support in some circles, others, including the Federal Council, have pointed out that the current system is “already income-based,” because low-earners are eligible for government subsidies if health insurance premiums exceed 8 percent of their revenue. 

The Greens also consider the fight against global warming as a health policy, saying that in Switzerland alone, more than 2,000 people die each year from diseases caused by air pollution.

Liberal-Radicals (PLR)

The party supports the system where patients voluntarily choose generic rather than brand-name drugs in return for lower health insurance premiums.

Under the current scheme, those who choose generics are only responsible for a 10-percent co-pay, while it is 40 percent for brand medicines. 

But “if policyholders can actually choose the model they want, we can definitely consider [this option],” said health economist Willy Oggier.

Swiss People’s Party (SVP)

Perhaps the most radical proposal comes from the party that is most right-wing.

Its proposal: the compulsory health insurance must be abolished altogether.

Not only is this idea drastic, but it is not implementable under the current law.

That’s because the current legislation is the outcome of the 1994 referendum, when voters accepted a general obligation for health insurance.

To repeal it, another referendum would have to be held, with the majority voting to scrap this law.

But even if the compulsory insurance were to be abolished, people would have to pay even more for health care, Oggier said.
 

SHOW COMMENTS