Health insurance premiums in Switzerland are expensive. Everyone knows that. What many people don’t know is that there is a system of cantonal subsidies that can reduce them significantly, and that a large number of people who are entitled to them never apply for them because nobody has explained the scheme to them.
It is known as the individual premium reduction (in German, ‘individuelle Prämienverbilligung’). Each canton has its own system, but the principle is the same: if your income falls below certain thresholds, the canton pays part of your monthly premium directly to your health insurance provider. Around 30 per cent of the Swiss population receives some form of subsidy of this kind. From 2024, a federal law will require the cantons to ensure that no family spends more than 10 per cent of their income on health insurance premiums.
The problem is that the system works differently depending on the canton. In some, the benefit is paid automatically if you have declared your income. In others, you have to apply for it specifically, every year, within a set timeframe. If you don’t apply, you won’t receive it, even if you’re entitled to it. And there are cantons where the income threshold is considerably higher than people imagine: we’re not just talking about minimum wages. Families with two modest incomes and children may be eligible for this support.
If you’re not sure whether you’re eligible, the first step is to check the website of the local council where you live, or ask your health insurance provider directly. You’ve got nothing to lose by giving it a go.