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HEALTH INSURANCE

Millions of Swiss residents switch health insurance amid rising costs

The number of people changing their health insurance provider in Switzerland nearly doubled predictions in 2022.

Published: 23 December 2022 16:05 CET
Millions of Swiss residents switch health insurance amid rising costs
Photo: Hush Naidoo Jade Photography on Unsplash

Rising cost of living and rocketing healthcare costs in Switzerland will see health insurance prices rise by about 6.6 percent as 2023 comes in.

That increase is one of the largest the country has ever seen – given that most annual hikes are in the 1.5 percent range. The federal government says most of it is Covid-related.

While it amounts to an increase of about 22 francs per month to an overall average monthly premium of 335 francs, that can vary widely by canton. Basel, Neuchâtel, and Ticino will see even higher increases of over 9 percent each. Basel itself will have average monthly premiums of over 425 francs – the highest in the country.

According to price comparison portal Comparis, 27 percent of people in Switzerland changed their basic health insurance provider in 2022 in an attempt to save money ahead of the hikes. People under 36 years of age changed at a higher rate – about 41 percent made the switch. French-speaking cantons were most likely to change, at 31 percent. Men were also much more likely to change than women, at 32 and 21 percent, respectively.

More than 60 percent of switchers said price was a main consideration. That’s possibly why smaller insurers tended to gain the most new customers in 2022.

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HEALTH INSURANCE

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

The price of Swiss health insurance premiums has been rising significantly in the past few years, prompting political parties to launch two cost-cutting initiatives. The votes will take place in June and there's a lot at stake.

Published: 24 April 2024 15:33 CEST
How Switzerland's two crucial health insurance referendums could impact you

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).

This is what’s at stake.

The ’10-percent’ initiative

In view of the high (and rising) premiums and other costs of living, which eat up a big chunk of the budgets of low- and middle-income consumers, the Social Democratic Party has spearheaded a national vote to cap the insurance rates at 10 percent of income.

Anything over this limit should be paid for by the federal and cantonal government, the party says.

While this strategy may sound enticing to everyone tired of paying high premiums, the government warns that while this proposal looks good on paper, the ‘yes’ vote could unleash some serious consequences.

Its main argument is that this measure would cost several billion francs per year, and does not provide any incentives to control health costs.

Instead, the Federal Council and the parliament have concocted their own ‘counter initiative’ that they want voters to approve.

Under this proposal, cantons will have to increase the amount of financial help they pay toward health premiums for low-income people. 

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

‘For Lower Premiums’ initiative

For its part, the Centre party has come up with its own proposal to reduce health insurance costs, which will also be voted on June 9th.

It provides for a ‘brake’ on health costs, which should evolve according to the economy and wages.

This brake would work in the same way as the federal spending brake. Therefore, when healthcare costs exceed wages for a given year by 20 percent, the government must take action to bring the  costs down.

The government is asking voters to turn down the Centre’s proposal because it doesn’t take into account factors such as demography, technological progress in healthcare, as well as the dependence of salaries on economic developments.

Here too, the Federal Council and parliament have put out their own counter-project, providing for more targeted measures, including specific cost control objectives for healthcare services.

Are there any other proposals on the table aiming to curb the cost of insurance premiums?

Yes.

While they are not on the ballot, two ideas have been debated in past months.

One calls for scrapping multiple private carriers  in favour of a government-run single health insurance scheme, similar to that in the EU. 

The other idea floating around is to replace the current system where rates are determined by factors such as age and canton of residence, and base them on wages instead. 

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