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HEALTH INSURANCE

In which Swiss cantons is most income spent on health insurance?

For many people in Switzerland, the obligatory health insurance premiums represent a significant financial burden. But how much you will pay depends on where you live.

Published: 14 March 2024 15:48 CET
In which Swiss cantons is most income spent on health insurance?
Your health insurance burden depends on where you live. Photo by Hush Naidoo Jade Photography on Unsplash

The price of the compulsory health insurance (KVG / LaMal) has been an ongoing topic of discussions for years, as costs keep climbing and no relief is in sight.

But this has become even more pertinent now, as Swiss voters will weigh on two initiatives relating to health insurance premiums on June 9th (read more about it below).

Everyone agrees that insurance rates are high and that they account for a big chunk of many people’s budgets.

But how big exactly?

As so many other things in Switzerland, the cost of health insurance is determined by cantons, which means residents of some areas will pay higher premiums than others.

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

So where in the country are you likely to spend the biggest portion of your salary on health insurance?

This is the picture that emerges based on figures from the Federal Office of Public Health (FOPH) and research carried out  by Ecoplan independent political and economic consultancy:

Families

A typical family (‘typical’ for this particular study) with two young, pre-school-age children and a net income of 97,992 francs a year, will spend the biggest chunk of their income (16.5 percent) on health insurance in Basel-City.

Next are Neuchâtel (14.9 percent) and Bern (13.2 percent).

On the other hand, in Zurich, Switzerland’s (and the world’s) most expensive city, that proportion is 12.2 percent — still high, but lower than in a number of other cantons.

As a comparison, that rate in the canton of Graubünden is only 6 percent.

 Single individual

The research looked at a 24-year-old unmarried person who earns 47,500 francs net.

Their health insurance premiums amount to 8.8 percent in Neuchâtel, followed by 8.2 in Basel-Country, and 8 percent in Vaud — all three, the highest in Switzerland.

If that person lived in Basel-City, on the other hand, their premiums would represent  only 4 percent of income.

Pensioners

For the retiree living alone and receiving a net income of 33,750 francs, social assistance and supplementary benefits cover the costs of the premiums.

READ ALSO: Is Swiss health insurance cheaper or even free for pensioners?

What do we learn from this study?

Primarily, that how much of your income is spent on health insurance is determined by your place of residence — not exactly a major revelation, but the figures are interesting nevertheless.

Keep in mind, however, that these numbers are approximate, and a lot depends on each person’s circumstances — that is, the exact salary and family situation, as well as the kind of co-pay deductions their insurance plan has.

What’s on the agenda for the June 9th referendum?

Two initiatives related to the cost of health insurance will be voted on:

  • ‘Premium relief initiative calling for no more than 10 percent of income to be spent on health insurance premiums 
  • ‘Cost brake initiative for lower health insurance premiums

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For members

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
Updated: 28 April 2024 08:44 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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