More people in Canton Zurich will be eligible for a reduction in health insurance costs, under plans approved this week. The region will spend 50 million francs more on premium reductions, which will be expanded to include those on middle incomes.

Zurich votes to spend more on lowering insurance costs

At a vote on January 20, lawmakers in the cantonal council of Zurich approved a plan to dramatically expand premium reductions. An extra 50 million francs will be put towards the scheme, beginning in 2026.

Currently, all residents of Switzerland who earn below a certain income are entitled to a reduction in their premium for basic health insurance. These are given if a person’s annual health insurance premium exceeds a certain percentage of their salary or total income - these thresholds are defined by the canton.

In Canton Zurich, for example, adults over 25 years old with no children have to earn less than between 61.250 and 72.230 francs a year, depending on where they live, to apply. Once approved, the canton then subsidises the insurance premium so that it does not exceed a certain percentage of the recipient's income.

Plans to expand health insurance relief to higher-income groups 

While the new plan won’t provide more support to those who already receive insurance reductions, the extra money will be used to expand the scheme to higher-income groups. Speaking to Blick. Social Democratic Cantonal Councillor argued that the income threshold for premium relief “has so far been set too low”, with supporters adding that following three successive rises in the cost of health insurance, even those with higher pay are starting to struggle.

On the opposite aisle, the Swiss People’s Party and FDP. The Liberals argued that the “band-aid policy” would do nothing to address the high cost of healthcare, adding that the issue should instead be solved at the federal level. Cantonal Health Director Natalie Rickli (SVP) added that "with this distribution based on the watering can principle: even people who don't actually need it benefit." 

She added that the policy will likely be scrapped by 2028, as the region adapts to national reforms which will begin in 2026. The change, a counter-proposal approved when the SP’s Premium Relief Initiative was rejected by voters in June 2024, would require all Swiss cantons to pay a minimum contribution to premium reductions. 

While it is unclear how the reform will affect Zurich specifically, it means the scheme will have to be revisited. For its part, the 50-million franc proposal will be heading to a final vote at some point in February.

Large number of people fail to apply for premium reductions

Though the proposal would expand the premium reductions to more people, it is unclear how many people will apply for the scheme. An April 2024 study from the Tages-Anzeiger found that in 19 of 26 Swiss cantons where relief is not automatically applied, up to a quarter of eligible people do not apply for nor receive the benefit.

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