Premium relief initiative rejected according to trend calculation
Published: Sunday, Jun 9th 2024, 12:20
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Expenditure on health insurance premiums is not limited to a maximum of ten percent of disposable income for households. According to trend calculations by the research institute gfs.bern on behalf of SRG, the SP's premium relief initiative was rejected.
A cap on health insurance contributions was not capable of winning a majority, although high insurance costs are regularly perceived by the Swiss population as the number one issue of concern. During the referendum campaign for the initiative, approval ratings fell in opinion polls - most recently from almost sixty to fifty percent.
The initiative demanded that all insured persons should have to pay a maximum of ten percent of their disposable income for premiums and that they should receive a premium reduction for the amount above this. According to the text of the initiative, the federal government should cover two thirds of total expenditure. The cantons should finance one third.
Subsidies that cannot be financed
The Federal Council, parliament, cantons and well-known business associations rejected the SP initiative. They pointed out that there are already programs to support the needy. The core argument of the opponents was that expanding premium reductions in line with the initiative would have cost taxpayers CHF 3.5 to 5 billion a year and could only have been financed through tax increases.
Moreover, the initiative would only have tackled the problem of rising healthcare costs symptomatically, but not at its root, argued conservative forces. The major challenges could be solved with more market and personal responsibility instead of additional subsidies.
During the referendum campaign, opponents always referred to the indirect counter-proposal adopted by Parliament, which would come into force after the No vote. This would help to reduce the financial burden of health insurance premiums in the short to medium term.
Cantons must do more
In future, the cantons will have to pay a minimum contribution of 3.5% to 7.5% of the costs of compulsory basic insurance for the premium reduction. The counter-proposal means additional costs of around CHF 356 million for them. These costs could rise to CHF 960 million by 2030.
In future, cantons with high healthcare costs will have to pay more in premium reductions than cantons with low costs. The federal share will remain unchanged.
Today, around a quarter of the population receives a premium reduction. In 2022, around CHF 5.4 billion of public funds were spent on premium reductions. The federal government paid more than half of this.
Pressure for relief remains high
In contrast to the vote for a 13th AHV pension, the left was unable to offset the cost consequences of the initiative with stronger arguments. Families, lower and middle incomes suffered most from the explosion in premiums, the initiators claimed.
In addition, the pressure of rising healthcare costs would be shifted away from premium payers and onto politicians. According to the proponents of the initiative, the federal government and cantons would have an incentive to move forward in order to get healthcare costs under control.
In fact, the pressure for further relief measures is unlikely to diminish even after the No to the premium relief initiative. The comparison portal Comparis predicts that basic insurance premiums will continue to rise by an average of six percent in 2025. In some cantons and premium regions, premiums could even rise by more than ten percent.
The main reason for the growth in premiums is the rise in overall healthcare costs in Switzerland. Next year, these will rise by 3.2 percent, according to the outlook published by Comparis and the ETH economic research center. Growth of 3.6 percent had been forecast for the current year.
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