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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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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.
 

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