Heated budget debates on reducing premiums are on the agenda: these cantons are lagging behind in premium increases

This is evident from calculations by the trade union federation on cantonal finances, which take into account both individual premium reductions and those for supplementary benefits and social assistance. While the federal government injects significantly more money, cantonal funds for premium reductions across Switzerland only increase by 2.8 percent. However, in 2024, premiums will increase by an average of 8.7 percent! This means that the premium reduction lags significantly behind the premium increase.

Only two cantons are growing sufficiently

If you also take into account the predicted population growth of 0.8 percent, the premium reduction would have to increase by a total of 9.5 percent next year to maintain the current level, the SGB analysis concludes. And: “From this perspective, funding will be cut in 24 of the 26 cantons next year.”

In the cantons of Appenzell Innerrhoden, Zug, Glarus, Nidwalden, Neuenburg, Basel-Landschaft, Bern and Vaud, less money is even budgeted in absolute terms than this year. According to the analysis, only the cantons of Freiburg and Schaffhausen increase resources sufficiently to compensate for the premium shock.

Maillard regards cantons as a duty

“The gap is increasing, the premiums are putting increasing pressure on the household budget,” says SGB chairman Pierre-Yves Maillard (55). Many would have to pay one-fifth of their household income for the premiums. “Do politicians really want this share to rise to 30 percent?” Maillard asks rhetorically. And emphasizes: “The cantons are swimming in money.” According to an analysis by the SGB, the cantons made a total profit of 3.3 billion francs in 2022. The budget amounted to a loss of 1.2 billion.

Maillard now sees the cantons as an obligation: “Instead of new tax cuts, considerably more money is needed to reduce premiums.” The SGB’s analysis shows that in many cantons there is a “budget backlog” in premium reductions.

A point of contention in the budget debate

In the cantonal budget debates, the premium reduction becomes a point of contention, and heated discussions are inevitable.

For example in the canton of Bern. This will yield less money for premium reductions in 2024 than this year, even though health care premiums in Bern will rise by an average of 8.3 percent. The government explains the reduced need for an above-average number of people who no longer have rights.

An argument that raises the left’s hat. “The government must change the eligibility criteria so that more people receive help,” says Green Councilor Rahel Ruch (37). She therefore requests the cantonal parliament to increase the reduction pot by 8.3 percent.

What irritates them most: at the same time, tax cuts for large companies are planned in Bern. “We must make better use of the financial space for higher premium reductions and adjustments in the cost of living for staff.”

In Solothurn, resources are increased slightly, but the budget gap criticized by the trade union federation remains high: 9.1 percent. However, it is likely that this will close somewhat. In contrast to the cabinet, the parliamentary health committee wants to increase the cantonal contribution to individual premium reductions by about 5 million euros to more than 90 million euros.

The situation in Ticino is special. The State Council has put together a savings package of 134 million francs. Subsidies for premium discounts will also be reduced. This is particularly bitter. Because: The canton of Ticino will record the highest increase in health insurance premiums in Switzerland next year with 10.5 percent.

“Play with the Fire”

“The cantons are playing with fire if they save money on premium discounts,” Maillard warns. He hopes even more for the voters. The premium waiver initiative from the left and the unions is expected to go to the polls in June.

This requires that no household have to spend more than 10 percent of its disposable income on health insurance. That would cost the state 4 billion francs. Parliament’s indirect counter-proposal only wants to burden the cantons with approximately 360 million euros.

“With our initiative, the electorate can finally put an end to premium horror,” said Maillard. “If that is not the case, ordinary people will use the free pass and allow the population to pay unlimitedly.”