With residents of Switzerland bracing for yet another expected rise in the cost of health insurance, the Federal Council has pushed for the minimum deductible on insurance plans to be raised. Here’s what the proposed increase would mean.

Minimum health insurance deductibles set to rise in Switzerland 

In a statement, the Federal Council put its weight behind increasing the minimum deductible for health insurance in Switzerland. The idea was originally proposed by elements of the Swiss People’s Party (SVP) in parliament, but now has the backing of the executive.

Alongside monthly premiums, those with mandatory health insurance plans in Switzerland have the ability to choose an annual deductible of between 300 and 2.500 francs. This means that if you visit the doctor or a hospital because of an illness, you first pay your deductible before your insurance kicks in.

For example, if you need surgery costing 10.000 Swiss francs and you have a deductible of 2.500 Swiss francs, you are expected to pay 2.500 Swiss francs on top of your monthly health insurance premium. The insurance provider then pays for the remaining 7.500 Swiss francs. Generally speaking, the higher the deductible, the lower your monthly premium. 

Higher deductibles lead to lower overall premiums, SVP argues

While the SVP’s plans did not cite a specific figure, National Councillor Diana Gutjahr, one of the bill's main backers, suggested the minimum deductible be raised from 300 to 400 francs a year. According to data from the Federal Office for Public Health, this would affect 44 percent of the Swiss population (3 million people), who would face a higher immediate bill should they seek medical attention.

Speaking to SRF back in July, Gutjahr argued that the minimum deductible has not changed in 20 years, despite premium costs tripling during the same period. She claimed the plan would reduce premiums in the long term, as fewer people would seek medical attention. 

This alludes to the comments of two anonymous doctors back in June 2024, who argued that “pointless check-ups” are the main reason why the cost of healthcare in Switzerland is soaring. “If everyone makes their contribution and does not immediately take advantage of the service, which also has financial consequences, then the costs in the healthcare system can be reduced,” Gutjahr argued.

Swiss insurance changes likely to hit the most vulnerable, SP counters

In response, Social Democratic National Councillor Barbara Gysi noted that an increase in deductibles would “hit those people most who are vulnerable, who are chronically ill, who are older and who cannot choose a high deductible. And they will have to pay even more. That really cannot be right." 

Contrary to what was argued by the anonymous doctors, she said that "it is a fact that around a fifth of all people today do not seek medical treatment or do so too late because they are afraid of the additional costs they will have to bear."

Currently, the plan to increase deductibles is supported by a wide swathe of parliamentary parties. With the backing of the Federal Council, the policy will likely be approved in the coming weeks and months.