Europe's news in English

COPY LINK

HEALTH INSURANCE

How people in Switzerland can save money on healthcare

Nearly 900,000 Swiss could save up to 40 percent of their health insurance premiums in 2023. Here's how.

Published: 5 October 2022 12:43 CEST

How people in Switzerland can save money on healthcare

How can you save money on health insurance in Switzerland? (Photo by National Cancer Institute on Unsplash)

Much has been said about Switzerland’s compulsory health insurance, most of it about its high — and continually growing — costs.

Premiums will likely rise by an average of 5 percent in the fall, and many people could even see their rates soar by more than 10 percent in 2023 — the sharpest hike in premiums in 20 years.

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

According to online comparator Comparis, almost 900,000 people in Switzerland could save at least 40 percent of their health insurance premiums in 2023.

Savings are possible by switching to one of the cheapest insurers, by increasing the deductible rate or by opting for another model of insurance with their current health insurance fund, Comparis said on Tuesday.

Premiums are going up even for cheaper insurers

“However, the politically enforced, excessive reserve reduction at the health insurers has led to the fact that even low-cost health insurers had to increase their premiums strongly,” said Comparis health insurance expert Felix Schneuwly.

READ ALSO: EXPLAINED: Why are Swiss health insurance premiums set to rise?

Because of that, the difference in premiums between companies has decreased, and fewer insured persons can save money by changing companies. Last year, the savings potential of 40 percent or more applied to 1.1 million people.

The amount of the savings vary depending on the policyholder’s place of residence because cantons determine rates.

However, in a previous study, Comparis calculated that over ten years, people living in Zurich could have saved 33,396 francs in premium costs and for those living in Bern, this amount is 30,064.

Lausanne residents could cut costs by 36,494 francs over ten years, 31, 032 in Geneva and 33,490 in Basel-City.

Member comments

Log in here to leave a comment.

Become a Member to leave a comment.

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.

Url copied to clipboard!