In 2024 the average monthly premium will reach 359.50 francs, recording an increase of 28.70 francs (+8.7%) compared to 2023. The increase in premiums is due to the increase in costs which have grown significantly more sensitive than expected starting from the second half of 2021 and in particular this year.
In 2024 the average monthly premium will reach 359.50 francs, recording an increase of 28.70 francs (+8.7%) compared to 2023. The increase in premiums is due to the increase in costs which have grown significantly more sensitive than expected starting from the second half of 2021 and in particular this year.
In 2024 the average monthly premium will amount to 359.50 francs, i.e. 28.70 francs more than in 2023 (+8.7%). The average premium for adults will increase by 33.80 francs (+8.6%), reaching 426.70 francs.
That of young adults will amount to 300.60 francs with an increase of 23.80 francs (+8.6%). The average premium for minors will reach 111.80 francs, i.e. 8 francs more than in 2023 (+7.7%).
Multiple factors responsible for the increase in costs
The main cause of the high increase in premiums is the strong growth in healthcare costs. The premiums actually reflect the costs. In the first half of 2023 costs increased by 6.4 percent compared to the first half of 2022.
For the current year, insurers expect a cost increase of 5.3 percent and a further progression of 3.4 percent in 2024.
This sharp increase in costs is attributable to a variety of factors: the aging of the population, new medicines and treatments as well as an increase in healthcare services, such as hospital outpatient services or physiotherapy.
In 2022, the costs of healthcare services per insured person grew more in the hospital-outpatient sector (+8.5%) than in the medical practice sector (+5.1%). The number of medical consultations per patient is stable, however the costs per consultation are increasing.
The sharp increase in the costs of inpatient hospital services, which generate 19 percent of the costs borne by the compulsory health care insurance (AOMS), is partly due to delays in the billing of services from the previous year by hospitals and rehabilitation clinics caused by a new fee structure. In various cantons, an increase in tariff points is observed in the outpatient hospital sector.
In 2022, medications were responsible for 22 percent of AOMS costs. The growth in costs of medicines in the outpatient sector (+5.5%) remained at a consistently high level. However, in the annual comparison, the costs of medicines increase more than the remaining costs borne by the AOMS.
Anti-cancer drugs, immunosuppressants and anti-diabetics recorded the sharpest growth and are responsible for 50 percent of the increase in costs per insured person in 2023. Also the excessive price requests for new approvals and the too frequent use of original preparations influence the progression of costs.
Decrease in reserves
In 2022, the strong recovery effects after the pandemic led to higher costs and resulted in a loss of CHF 1.7 billion for the insurance business. Added to this is an investment loss of 1.8 billion francs due to the difficult situation on the capital markets, which corresponds to an investment return of -11 percent.
The losses were fully compensated by reserves, which thus decreased to 8.5 billion francs across all sectors at the beginning of 2023. Overall, insurers have sufficient reserves, but the buffer needed to further contain the evolution of prizes.
Composition of the premium increase
The high increase in premiums in 2024 is attributable to multiple factors. In addition to the expected cost increase, a certain gap needs to be filled.
On the one hand, the premiums will not cover the costs of 2023 as the latter are higher than expected. On the other hand, an above-average number of insured people have changed insurers or chosen a higher deductible to reduce the burden of premiums.
Therefore, on average in 2023 premiums increased less (+5.4%) than announced (+6.6%). Lower premium income must now be included in the calculation of the 2024 premium evolution, which will also take into account the increase in costs in 2024.
The Federal Office of Public Health (FOPH) examined in detail all premiums submitted by insurers to verify compliance with legal requirements, requesting adjustments where necessary. All awards have been approved.
Containing costs remains an ongoing task
Switzerland boasts an excellent healthcare system. Due to medical-technical progress and demographic evolution, healthcare costs will continue to increase in the future. This increase must be limited to a medically justifiable level, without compromising the quality of care.
The Federal Council and the Federal Department of Home Affairs (DFI) have been working for years to contain healthcare costs. Since 2012, the FOPH has reduced drug prices by more than one billion francs and laboratory fees by 10 percent, resulting in savings of 140 million francs. The HTA (Health Technology Assessments) program has made it possible to achieve further annual savings of around 75 million francs.
The Federal Council’s intervention in the tariff structure for TARMED medical services generated savings of 470 million francs. With the revision of the Health Insurance Ordinance (OAMal) and the Benefits Ordinance (OPre), which will come into force on 1 January 2024, the Federal Council has adopted various measures to promote the use of generics and biosimilars more cheap. These measures provide savings potential of up to 250 million francs per year.
The national program for the digitalisation of the healthcare sector (DigiSanté) will also contribute to improving coordination between healthcare actors and, consequently, the efficiency of the system.
The Federal Council has forwarded to Parliament two packages of cost containment measures in the health insurance sector. In the current parliamentary session, Parliament will decide on the second package of measures. The main objective is to promote new models for setting the prices of medicines.
