As insurance rates will rise by 6 percent on average (and quite a bit more in some cantons), the budget of many households will be strained in 2025.
It is perhaps understandable that you may be tempted to skip paying your health insurance premiums one month, planning to catch up the missed payment(s) in the future.
However, you should not do that.
Here’s why.
A cautionary tale
Under the current law, anyone who doesn't pay health insurance premiums may be denied medical treatments, except in case of emergency.
This is what happened to one man, with dire consequences.
As reported by news media, a man in Aargau did not pay his health insurance premiums and ended up on the blacklist of bad payers (though many cantons no longer keep such lists, some still do — even though this practice is heavily criticised as it can have life-threatening consequences).
The man suffered from heart problems and needed to see a cardiologist, but because he hadn't paid his premiums on time he was only eligible for emergency treatment.
In the end his condition worsened so much that a heart transplant became the only option left.
But how is it possible that someone who is seriously ill has to be denied treatment because they don't pay their health insurance premiums?
There are actually exceptions for cases when someone's quality of life is severely restricted by their illness, or if it could have fatal consequences if untreated.
However, these people must report to health authorities in their canton of residence and provide documentation of their medical history.
(For reasons of data protection, the Federal Office of Public Health will not disclose whether the heart failure patient has done so).
This is a rare occurrence in Switzerland, but it shows what could happen if you don't pay your premiums.
Hefty penalty fees
As is the case with any bills you don’t pay, the arrears are going to catch up with you.
Usually, you have 30 days to pay your invoices, with most companies giving you a few extra days of grace period before sending you reminders — polite ones at first, and later on, less so.
In case of health insurance, your provider will typically send one ‘free’ reminder. From the second one (assuming you still haven’t made the payment), the carrier will charge you ‘late fees.’
According to Moneyland consumer platform, “each additional reminder is generally accompanied by a penalty fee. This penalty fee ranges between 10 and 50 francs, depending on the insurance provider. Penalty fees for compulsory health insurance premiums are typically higher than those for supplementary health insurance.
If the premium is still not paid after several warnings have been issued, a debt collection claim is filed, adding additional costs to the process.
“Penalty interest on the unpaid premium at the rate of 5 percent a year is added to your health insurance bill. This penalty interest rate is stipulated by law and is identical across all insurance providers,” Moneyland said.
Other fees may be added to your bill in addition to penalty interest, ultimately turning into a huge debt — something you want to avoid because, under the worst-case scenario, it could be a matter of life or death.
What if you can’t afford to pay your premiums?
If you find yourself in this situation — that is, if you are a low earner or have a large number of children — you can have your premium reduced.
All cantons have budgets allocated specifically for this purpose.
Before deciding whether you receive the assistance, however, your canton of residence will look not only at your earnings, but at any other financial assets you hold as well.
So if your income is low but you have plenty of money in the bank in the form of savings or other investments, you will not qualify.
Exact subsidy amounts may vary from one canton to another.
Will you receive government help?
Subsidies are available to anyone obligated to take out Swiss health insurance — that is, anyone living in Switzerland for more than 90 days, regardless of their nationalities — with just a few exemptions from this rule.
Eligibility is based on your most current tax declaration, which allows the authorities to see not only how much you earn and how many children you have, but also your total assets.
Some cantons will notify those who are eligible automatically when you file your tax return. In others, you must apply for the reduction yourself every year.
This is a list of all the cantonal authorities responsible for subsidies.
READ ALSO: How do I apply for health insurance benefits in Switzerland?
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