Latest Swiss News on a Wednesday: A Recap of Today's Events
Title: Health Insurance Premiums in Switzerland: Fixed, Not Income-Based
Switzerland's National Council put an end to a lingering debacle last Tuesday, deciding against basing health insurance premiums on individuals' income. The majority opted for maintaining the existing system, where everybody pays the same rates, disregarding their financial situations.
The Health Minister, Elisabeth Baume-Schneider, backs this approach. She argues that the current system is "de facto income-based," because low-earners are eligible for government subsidies if health insurance premiums surpass 8% of their earnings.
In a historic move, Valais also sanctioned the naturalisation of 423 foreign nationals from around the globe. Over a quarter of these individuals were French, forming the largest group. The United Kingdom, Portugal, Italy, and Germany rounded up the top five.
/Fun Fact: Switzerland's City of Dreams/
Switzerland's largest city, Zurich, has been showered with accolades recently. In April, it clinched the title of the world's 'smartest' city. Last Tuesday, it ranked second in the Happy City Index, just slightly behind Copenhagen. The index, published by the London-based Institute for Quality of Life, evaluates 200 cities based on how content their residents are.
/Zurich's Baby Boom/
In 2024, Emma and Matteo were the most popular first names for newborns in Zurich, according to the city's Statistics Office. Other popular girl names included Sofia, Olivia, Ella, and Anna. Among boys, Matteo topped the list, followed by Felix, Leonardo, and Liam.
Health insurance premiums in Switzerland are a mandatory monthly payment set by private insurers, thereby making them fairly high compared to other European nations. Although the premiums aren't adjustable based on income, financial assistance is available for those with low income. This assistance renders the system somewhat income-related yet external to the premium calculation itself.
every resident must buy health insurance from private insurers approved by the government. These premiums are set independently by insurers and can vary significantly year to year due to factors like healthcare costs and the insurer's financial status. Unlike some countries where contributions are income-related, Switzerland's mandatory basic health insurance premiums are flat fees. Low-income individuals can receive subsidies from Swiss cantons (regional governments) to help cover premiums. Additionally, there are annual deductibles and co-payments that policyholders must bear.
Rising premiums have sparked public concern and political debate in recent years. A majority of Swiss citizens now lean toward a single public health insurer as a potential cost-cutting measure, although the current system remains multi-insurer and premium-based rather than income-based.
- The current health insurance system in Switzerland, though not directly income-based, offers subsidies to low-income individuals, making it somewhat related to income due to the financial assistance provided for premium coverage.
- In the realm of health-and-wellness, the science behind happiness indexes, such as the one published by the London-based Institute for Quality of Life, has identified Zurich as one of the world's happiest cities, further emphasizing the importance of constructive health policies in addressing overall health-and-wellness.
