The Swiss Healthcare System - How Does Health Insurance In Switzerland Work?

Health Insurance In Switzerland

In Switzerland, everyone has health insurance. The health outcomes are excellent, the cost is reasonable and patients are highly satisfied. How does this work? Why is Switzerland renowned for its healthcare system?

Insurance Companies

Health insurance is purchased directly from insurance companies such as «Aquilana» or «CSS», businesses do not act as a middleman like they do in the US. Therefore customers keep their coverage when they change or lose their job.

Regulation

These insurance companies are regulated by the government, which enforces price controls. Insurance companies are required to accept anyone, therefore they cannot deny coverage to individuals with pre-existing conditions.

Premiums

The premiums are negotiated between insurance companies and medical providers, approved by the canton (state) government and are then paid for by the citizens themselves. The basic insurance plan, defined by the government, are compulsory, meaning everyone in Switzerland has to be insured or face high fines. Within three months of entering the country (or birth) a person must sign up with a insurance company. Providers are forbidden to profit from these plans, instead they make money off supplemental coverage such as dentistry, alternative medicine, transport and glasses. Companies compete with high and low deductibles and supplemental benefits.

Premiums are not affected by health, age or income, meaning that an old, sick, millionaire pays the same monthly amount as a young, healthy middle-class citizen. However the costs for low-income citizens are subsidized by the government. In Switzerland, healthcare makes up 10.8% of the GDP, rather high compared to other countries.

Benefits

Swiss patients don’t have long wait times and they have free choice of doctor inside their canton (state). Switzerland is well-known for its quality medical and paramedical services. They have one of the lowest patient-doctor ratios worldwide. Additionally, pharmacists are highly qualified and are therefore often consulted before an individual visits the doctor.

Cost

Compared to the US, the costs are a lot lower. In 2007, the health insurance cost per capita in Switzerland were around $4,500, while in the US they were almost twice that, amounting to $7,500! In 2010, an adult (26+) pays Fr. 351 per month, a young adult (19-25) Fr. 293 and a child (0-18) Fr. 84.

Approval

Surprisingly, both liberals and conservatives like their health care system. The liberals because it guarantees universal coverage and the conservatives since it doesn’t put a burden on businesses.

Personal Experiences

I can personally attest for the high quality for the Swiss Healthcare System. Last year I was diagnosed with a IBD, an inflammatory bowel disease, and had to shortly thereafter enter professional medical care at the University Hospital in Zurich (one of the best medical institutions worldwide). In short, I spent over three weeks there, and had to be transported with an ambulance once. The care was fantastic, and I am currently in remission. The medical costs were over $30,000! How much did I pay? Only 10%, which amounted to $3,000.