Baume-Schneider’s message to premium payers: The government now assumes health costs will rise by 3%

Swiss health-insurance premium payers are heading into autumn with another increase in view. Comparis expects premiums to rise by 3.7% in 2027, less than in previous years but still too much for many households. The Federal Council, which must define a health-care cost target for the first time under a new law, is now facing criticism over its own proposal.

Health Minister Elisabeth Baume-Schneider has proposed allowing costs in basic insurance to grow by 3% in 2028 and 2029, then by 2.9% in 2030 and 2031. The Interior Department sent the proposal into an initial consultation over the summer.

The target comes from a complex calculation based on actual costs in 2024. It includes demographic trends, economic development, inflation, technological progress and the efficiency potential that remains in the system. The federal government estimates that 17% of costs could be saved because many treatments are either too expensive or unnecessary. It also acknowledges that “previous approaches to reviewing the volume of services provided have not been effective enough.”

The proposal is hardly ambitious, the article argues. At 3%, it sits only slightly below the average annual increase of about 3.5% over the past decade. Nor would missing the target have immediate consequences. Parliament removed a proposed requirement that the federal government and cantons at least consider countermeasures after an overshoot, relying instead on the expectation that excessive growth would create enough pressure for political and health-sector corrections.

For now, the pressure is on Baume-Schneider. Health insurers consider several targets too generous, particularly for hospital treatment. Her proposal allows growth of 2.3% for inpatient care and 4.6% for outpatient care, both of which insurers say exceed growth in recent years.