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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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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.

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