Health and health insurance premiums

In a year marked by economic uncertainty, geopolitical tensions and the rising cost of living, the biggest concern for Swiss people remains the increase in healthcare costs. Compulsory health insurance premiums in particular are once again at the top of voters’ concerns. Around 45% of all respondents cited healthcare costs as one of the five most important problems, which puts them well ahead of environmental issues, housing costs and retirement planning.

This result confirms a trend that has become increasingly apparent in recent years. This is due to continuous premium increases, an aging population and a healthcare infrastructure that is under growing cost pressure. The focus is not only on medical aspects such as treatment or quality of care, but also on the financial consequences, which are increasingly being felt by households.

Preparing for the future instead of worrying: so thatyou remain financially flexible in old age

The ability to live a long life – longevity – is a result of medical progress, but also poses challenges for social and personal financial planning. Switzerland is among the countries with the highest life expectancies in the world: men live on average for over 82 years and women over 85 years. When we reach this age, the question of financial security arises: for how many years can I continue to live in good health? And how can I cover the associated costs?

Longer life expectancy also increases the length of time that health services and nursing care are required. In this complex area, health insurance premiums, deductibles and healthcare costs are a crucial part of a personal life and financial strategy.

One thing is striking when it comes to concerns about healthcare costs: they are intergenerational. All age groups regard the rising insurance premiums for health and long-term nursing care in Switzerland as the most worrying issue. Although the weighting varies by a few percentage points depending on the age group, health remains the top concern of all Swiss people with a score of more than 40%.

Rising healthcare costs do not affect everyone equally, but they are a burden on many households. Low-income families are particularly affected: on average, they spend around 14% of their income on premiums, significantly more than families with middle and high incomes. The individual premium reduction (IPV) is a way to ease the financial strain. It is paid out to around a quarter of the population throughout Switzerland, and the amount varies from canton to canton. For many families and individuals, the burden of health insurance premiums is increasingly becoming a kind of “second rent” or “second tax”. If they are unable to afford their premiums on an ongoing basis, they put off treatment, which could jeopardize not only individual healthcare but also prevention. 

Changes have been introduced in the form of an amendment to the Health Insurance Act (standardized financing of benefits). On 24 November 2024, the Swiss people voted in favor of an amendment to the Federal Act on Health Insurance (HIA) to redistribute responsibility for financing outpatient and inpatient care services.

The main idea is to ensure a uniform distribution of the financing of services. Today, health insurance companiesmust bear 100% of outpatient treatment costs, while the cantons contribute to inpatient services. In the future, the cantons are to co-finance at least 26.9% of the costs, and the health insurance funds a maximum of 73.1%. Outpatient care should take precedence over inpatient care from now on. Those in favor argue that this would distribute costs more fairly, make financing more stable and reduce the burden on premium payers.

A structural measure is being introduced to reform outpatient costs: on 30 April 2025, the Federal Council approved the new general system with the medical tariff TARDOC (individual benefits) and flat rates for outpatient services; it is scheduled to come into force on 1 January 2026. The change is regarded as an important infrastructural step to reduce costs and modernize the outpatient sector. Nevertheless, the impact will depend heavily on how well the social partners, cantons, practices and hospitals apply the new structure.

Since July 2024, a new pricing model has also been in place for dispensing medicine. The dispensing of medicines that are covered by basic insurance via the Specialities List (SL) is strictly regulated in Switzerland – in terms of both prices and distribution shares. Better competitive conditions for generics/biosimilars should reducemedication costs and relieve the burden on premium payers.  

Good decisions about your healthcare costs require sound information. The Federal Office of Public Health (FOPH) provides comprehensive facts about compulsory health insurance on its website – including details of mandatory insurance, premiums, cost sharing and the rights of insured persons. The official federal premium calculator allows you to compare all of the premiums for your place of residence and age according to insurance models and deductibles.

The following principle applies when choosing between different deductibles and models: higher deductibles mean lower premiums, but also higher costs in the event of a claim. Consumer protection offers neutral guidance on the subject. For households on a tight budget, it is worth taking a look at the premium reductions available. In certain cases, the federal government and the cantons subsidize premiums on a pro rata basis.

Another important step: personal financial pension planning. Estimate your future costs and integrate them into your budget and asset planning. This concerns not only the premium itself, but also any costs due to higher deductibles, partial benefits or indirect effects such as lower savings capacity.

As a UBS client, you can ask our insurance and pension experts for advice. During a personal consultation, they will examine your overall financial situation and incorporate your expenditure planning into a comprehensive pension strategy, taking healthcare costs into account.