How Switzerland's political parties want to curb surge in health costs
As voters in Switzerland are set to weigh in on two initiatives seeking to lower insurance premiums, the country’s politicians are proposing their own cost-cutting measures.
On June 9th, the Swiss will cast their votes on two issues aiming, though in different ways, to curb the continually increasing cost of the obligatory health insurance (KVG / LaMal).
One calls for capping the insurance rates at 10 percent of income, while the other provides for a ‘brake’ on health costs, which should evolve according to the economy and wages.
READ ALSO: How Switzerland's two crucial health insurance referendums could impact you
Each initiative has its supporters and opponents, but regardless of what happens on June 9th, the issue of health insurance premiums, and health costs in general, will remain the focus of many political debates.
But while everyone in Switzerland agrees that health insurance is too expensive for most people, opinions on how to make it more affordable differ along the political lines.
These are some of the main views, as reported by Swiss media.
Social Democrats
The party that has spearheaded the ’10-percent of income’ initiative to be voted on June 9th, is also calling for scrapping of multiple private carriers in favour of a single, government-run health fund.
The party argues that such a system would help keep the costs low.
Others, however, disagree, saying that lack of competition would have just the opposite effect: instead of reducing costs, it would increase them further.
They also point out that a private insurance system offers more choices and provides a higher quality of services — including better access to specialists and shorter wait times for medical procedures — than a public option.
READ ALSO: Could Switzerland ever change to state-run health insurance scheme?
The Greens
The party has also spoken in favour of a single health provider, in addition to premiums based on income and wealth.
While the idea has gained support in some circles, others, including the Federal Council, have pointed out that the current system is “already income-based,” because low-earners are eligible for government subsidies if health insurance premiums exceed 8 percent of their revenue.
The Greens also consider the fight against global warming as a health policy, saying that in Switzerland alone, more than 2,000 people die each year from diseases caused by air pollution.
Liberal-Radicals (PLR)
The party supports the system where patients voluntarily choose generic rather than brand-name drugs in return for lower health insurance premiums.
Under the current scheme, those who choose generics are only responsible for a 10-percent co-pay, while it is 40 percent for brand medicines.
But “if policyholders can actually choose the model they want, we can definitely consider [this option],” said health economist Willy Oggier.
Swiss People’s Party (SVP)
Perhaps the most radical proposal comes from the party that is most right-wing.
Its proposal: the compulsory health insurance must be abolished altogether.
Not only is this idea drastic, but it is not implementable under the current law.
That’s because the current legislation is the outcome of the 1994 referendum, when voters accepted a general obligation for health insurance.
To repeal it, another referendum would have to be held, with the majority voting to scrap this law.
But even if the compulsory insurance were to be abolished, people would have to pay even more for health care, Oggier said.
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On June 9th, the Swiss will cast their votes on two issues aiming, though in different ways, to curb the continually increasing cost of the obligatory health insurance (KVG / LaMal).
One calls for capping the insurance rates at 10 percent of income, while the other provides for a ‘brake’ on health costs, which should evolve according to the economy and wages.
READ ALSO: How Switzerland's two crucial health insurance referendums could impact you
Each initiative has its supporters and opponents, but regardless of what happens on June 9th, the issue of health insurance premiums, and health costs in general, will remain the focus of many political debates.
But while everyone in Switzerland agrees that health insurance is too expensive for most people, opinions on how to make it more affordable differ along the political lines.
These are some of the main views, as reported by Swiss media.
Social Democrats
The party that has spearheaded the ’10-percent of income’ initiative to be voted on June 9th, is also calling for scrapping of multiple private carriers in favour of a single, government-run health fund.
The party argues that such a system would help keep the costs low.
Others, however, disagree, saying that lack of competition would have just the opposite effect: instead of reducing costs, it would increase them further.
They also point out that a private insurance system offers more choices and provides a higher quality of services — including better access to specialists and shorter wait times for medical procedures — than a public option.
READ ALSO: Could Switzerland ever change to state-run health insurance scheme?
The Greens
The party has also spoken in favour of a single health provider, in addition to premiums based on income and wealth.
While the idea has gained support in some circles, others, including the Federal Council, have pointed out that the current system is “already income-based,” because low-earners are eligible for government subsidies if health insurance premiums exceed 8 percent of their revenue.
The Greens also consider the fight against global warming as a health policy, saying that in Switzerland alone, more than 2,000 people die each year from diseases caused by air pollution.
Liberal-Radicals (PLR)
The party supports the system where patients voluntarily choose generic rather than brand-name drugs in return for lower health insurance premiums.
Under the current scheme, those who choose generics are only responsible for a 10-percent co-pay, while it is 40 percent for brand medicines.
But “if policyholders can actually choose the model they want, we can definitely consider [this option],” said health economist Willy Oggier.
Swiss People’s Party (SVP)
Perhaps the most radical proposal comes from the party that is most right-wing.
Its proposal: the compulsory health insurance must be abolished altogether.
Not only is this idea drastic, but it is not implementable under the current law.
That’s because the current legislation is the outcome of the 1994 referendum, when voters accepted a general obligation for health insurance.
To repeal it, another referendum would have to be held, with the majority voting to scrap this law.
But even if the compulsory insurance were to be abolished, people would have to pay even more for health care, Oggier said.
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