Gesundheit ist das Wichtigste – und erstaunlich günstig

In Switzerland, despite much complaining, health spending remains stable and surprisingly affordable, according to a recent report. The cost of the entire healthcare system in 2024 was nearly 100 billion francs, a 4 percent increase from the previous year. When measured as a percentage of Gross Domestic Product (GDP), this amounted to about 11 percent.

This represents the highest good, as the saying goes, and the proportion is increasing by roughly one percentage point every decade. Is this truly a cause for concern? The pharmaceutical industry demands exorbitant prices, it seems. However, the facts paint a different picture. Total medication expenses amount to around 10 billion francs, or about 1 percent of GDP.

While this is growing slightly, it is hardly alarming given the starting point. New therapies with extreme prices, such as cancer medications and immunosuppressants, account for a third of medication costs, but only 2 percent of earnings. High prices are due to patent protection, which is necessary to cover significant research costs and encourage innovation.

Once the protection expires after around ten to fifteen years, prices drop. However, the medical effectiveness remains the same. If a generic version is available, it is available in seven out of ten cases. And what about the argument that Switzerland pays more than other countries? Patent-protected medications cost here 9 percent more than in European countries.

Generics, however, are up to 45 percent cheaper compared to non-GMO medications. But this must be considered in relation to the much higher income level. Swiss wages are nominally 60 percent higher than in Germany and nearly three times as high as in Italy. Now, regarding the increase in premiums for the new year. The percentage increase ranged from 4.4 to 8.7 percent per year since 2023.

That sounds like a lot, but a 5 percent increase on an average premium of 400 francs results in only 20 francs per person and month. For a family of four, that's between 60 and 80 francs, depending on the children's ages. At a median monthly salary of around 7,000 francs gross, this represents 0.3 percent of income for an individual, possibly a bit more for a family.

But a percent of income shouldn't break the budget, especially since wages are also rising. And what about low-income earners? The state already provides fairly extensive assistance: About a quarter of the population receives premium discounting, and about a sixth of premiums are funded through taxes. Because federal and cantonal contributions are linked to gross costs, benefits grow with the costs.

Those entitled have the increase largely replaced in several cantons. Moreover, the increase can often be offset, for example, through a change of insurance company: Switching for the first time saves, on average, around 47 francs per month, according to Axa. Financially, the increased premiums are annoying, but they are often not worth discussing, just like high fuel prices.

It's part of life to not get angry about things that are either not very relevant or hardly changeable. And with the health insurance company, there's more: unlike gasoline, you get more for the additional money. Swiss women, on average, live to be 86 years old, while men live to be 83. Since 1990, they have gained five or eight more years of life, respectively.

Thanks to immunotherapy, the five-year survival rate for advanced melanoma has more than doubled in fifteen years from 16 to nearly 35 percent. So, ask yourself: Would anyone want to go back to the medical care from fifteen years ago when faced with a serious illness? We benefit from better medicine without the costs spiraling out of control.

The reason premiums still rise is that for the first time in Switzerland, there are more people over 65 than under 20. Older people utilize more services, leading to higher per-insured expenditures. And what do you want to change about this? In summary, we are not spending too much on health insurance. Rising premiums may significantly burden low-income households and lower middle-income earners, and there are undeniable savings potential.

Yet, the higher premiums are not a sign of an out-of-control system but the price for a high-performing healthcare system that benefits everyone. Enjoy the coming year. In 2027, we will have an excellent healthcare system again, and we don't have to pay too much for it.