Following the three sizeable increases in the cost of health insurance for 2023, 2024 and now 2025, the Swiss government and healthcare providers have promised to limit price rises from 2026. The aim is to cap annual premium rises to 1 percentage point for the foreseeable future, but questions have been raised as to how this will be achieved.

Swiss government and healthcare providers commit to cost cap

On November 11, Swiss Health Minister Elisabeth Baume-Schneider (SP) met with representatives from Swiss cantons, hospitals, health insurance providers and the medicine industry with the aim of capping price rises in healthcare. At the talks, all parties agreed to limit rising healthcare costs to 300 million francs a year from 2026. 

In practice, this will mean that any further rises in the cost of health insurance should be capped at one percentage point a year. All parties also agreed to meet twice annually to discuss ways to limit the rising cost of healthcare.

The promised cap is a welcome departure from recent trends: thanks to the rising cost of medicine and an ageing population, premiums have risen dramatically in the last three years. Costs rose by 6,6 percent on average for 2023, 8,7 percent for 2024 and are set to rise by 6 percent on average when deals are renewed for 2025.

Swiss Federal Council to work with providers to cut healthcare costs

In a statement, the Department of the Interior wrote that the first measures being discussed to limit cost rises are strengthening inpatient and basic care and digitalising the healthcare system. At the conference, Baume-Schneider said that the only way to curb price rises is to work together and “take a step towards each other.”

The Health Minister added that they hoped that by involving healthcare providers and associations, the Federal Council would be able to reform the system without much resistance. Proposals on how to cut costs further are expected when the group next meets in May 2025, and from the spring the general public will be able to submit ideas via an online portal.

Is the Swiss healthcare system value for money?

Though the idea of capping healthcare costs in Switzerland will come as a welcome relief to those embroiled in the rising cost of living, questions remain as to whether it can be achieved. In comparison to other nations with similarly ageing populations, Switzerland has been better at slowing rising healthcare costs. 

While the average cost of health insurance in Switzerland has risen by 3,5 percent a year on average since 1996, the United Kingdom has increased health spending by 4,3 percent a year during the same period, though its system funds healthcare directly through taxation. Annual spending on healthcare in Germany has more than doubled since the turn of the century, going from 218,4 billion euros in 2000 to 498 billion euros in 2022.

On the other hand, many others have argued that the healthcare system isn't value for money. In arguing in favour of a salary cap on health insurance costs, the Swiss Trade Union Federation cited several official reports from the government which estimated that healthcare spending could be reduced by 20 percent without compromising on quality.

The union argued that this can be done by “curbing the existing waste, over-provision and profiteering” - doctors speaking to NZZ am Sonntag in June 2024 estimated that half of medical examinations in Switzerland are pointless and solely used to increase bills.