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HEALTH INSURANCE

Swiss health insurance premiums to rise four percent on average in 2018

Compulsory health insurance premiums are set to rise again in 2018, the government announced.

Published: 28 September 2017 16:19 CEST

Swiss health insurance premiums to rise four percent on average in 2018

Photo: ginasanders/Depositphotos

The average four percent increase applies to what is known as the basic or standard premium, the compulsory health care premium for adults aged over 18, communicated the government on Thursday September 28th. The basic premium entitles the holder to an excess of 300 francs.

Basic health insurance is compulsory in Switzerland and premiums go up each year, set by the insurance companies but with some consultation with the government.

People can choose their 'excess' – the higher the excess the lower the monthly premium, and vice versa.

The 4 percent increase for premiums in 2018 however is higher than the average increase of 3.7 percent over the last ten years.

Premiums for children are set to rise at an even higher average in 2018 than for adults, 5 percent, while young adults aged 19 to 25 will be paying 4.4 percent more in 2018 for their premiums on average.

In eight cantons the increase is only three percent but the average increase in the price of premiums in the cantons of Geneva, Neuchâtel, Vaud and Valais is 5 percent, raising the national average.

The government argued that the increases were necessary because “premiums were too low for some insurers in recent years.” The higher costs, argued the government, are needed to cover the shortfall.

“The reserves fell below the prescribed minimum. Part of this year's premium increase is to restock the reserves,” communicated the government.

“Health care costs are rising as a result of demographic development, medical and technical progress and volume growth,” added the government in its statement.

Approximately 80 percent of the cost of compulsory medical insurance (LaMal) is divided into four main areas: patients treated through GP practices, inpatient care, outpatient care and the cost of prescribed medicines that health insurance firms must cover.

In 2014, 62 percent of the electorate rejected plans in a referendum to create a public-run health insurance scheme to replace the current private system. In a 2007 referendum, 71 percent rejected similar reforms.

For more information on how to calculate how your health insurance may be affected, visit www.priminfo.admin.ch

READ MORE: Swiss reject public health insurance plan

Which Swiss insurance policies are essential... and which ones don't you need?

You may have heard it said that Swiss are such happy people because they have insurance against every possible (and even unlikely) hazards. They just don’t like to leave anything to chance.

One such example is the ‘hole-in one’ golf insurance, which is explained in detail here.

It is therefore fair to say that while some policies are good to have, others are useless for most people.

How do you distinguish between the ones you need and don’t?

First let’s have a look at insurance that you must have, so it is not a matter of choice but of law:

Basic health (KVG / LaMal) and accident insurance
Auto / vehicle insurance
Buildings insurance (in most cantons)

These articles provide more information about these obligatory coverages:

Now let’s move to insurance policies that are not mandatory but worthwhile to have:

First, household contents insurance

It is a good insurance to have and here’s why: it will protect your personal property in your home or rented apartment against fire, water, theft, and other damages.

Personal liability insurance

This policy kicks in when you or anyone living under the same roof who is included in your coverage, causes damage to another person or their possessions.

For instance, you accidentally spill coffee on an expensive rug in someone’s house, causing damage to it which requires either professional cleaning or replacement.

Of if your child kicks a ball into a neighbour’s yard and breaks the gate, that too would be covered by a liability insurance.

In other words, any time you or a member of your household (including your dog) damages or destroys someone’s property, your liability insurance will cover it in most cases.

Note that often the two insurances — household contents and personal liability — are combined, so check to avoid buying overlapping coverages.

Travel insurance

If you never leave home, then you probably don’t need to spend money on this insurance.

But for everyone else, it is a good idea.

You can benefit in two ways from this type of insurance: one, it will refund costs of your trip if you have to cancel due to illness, death in the family, or other reasons that prevent your from travelling on an already booked trip.

Secondly, if you have an accident while travelling abroad, basic health insurance may not fully cover the costs incurred. Depending on the country you are in and the treatment you need, it can be very expensive.

It covers medical emergencies and rescue costs abroad. And, it also pays for medically necessary repatriation to Switzerland. Basic insurance only covers transport to the nearest hospital.

Legal insurance

Most people in Switzerland have it, but it is really up to you to decide whether you want to buy this policy or not.

It covers attorney and other associated fees if you undertake court action against someone, are sued, or simply need legal advice.
There are two different types of legal protection insurance — one specifically for traffic accidents and the other for all other matters. Sometimes they are combined.

Typically, this insurance covers costs of legal representation associated with contract disputes, employment, loans and debts, healthcare, housing, retail purchases, and travel.

It is one of those insurances that most people will likely never need, but if they suddenly do, it can save loads of money.

READ ALSO: Why you need ‘legal protection insurance’ in Switzerland

Complementary health insurance

If you are satisfied with the coverage of the basic insurance, and are not into any ‘extra’ treatments, then you probably don’t need this policy.

Many people in Switzerland do take it out simply because it offers services that are not covered by KVG / LaMal, such as alternative medicine and wellness treatments.

Even more importantly, it will pay (though only partially) for dentists and eyeglasses, the (uninsured) costs of which can add up to quite a lot.

By the same token, you don’t really need a private option on your health insurance if you are happy with the treatments and level of care offered by the basic model.

Both are nice to have (if you can afford them) but you don’t absolutely need them.

READ ALSO: Is the high cost of Swiss private health insurance worth it?

What about insurance you probably won’t need?

According to Moneyland consumer platform, you can do without these coverages:

Mobile phone insurance

It is not so much the matter of not needing to protect your smartphone, but the fact that any damage to it is likely already covered by your household contents insurance.

Car passenger insurance

Passenger insurance is offered as an optional supplement for mandatory third-party liability car and motorcycle insurance.

According to Moneyland, “it is normally not worth getting this insurance because passengers who live in Switzerland are already insured against accidents – either through their mandatory health insurance or through their employer-based accident insurance.

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