Swiss Health Insurance: 7 Common Money Wasters

Autumn is here once again, and once again the health insurance companies have published their new, higher insurance premiums and begun their advertising campaigns.

For many people, health insurance is just one of those topics they simply do not want to constantly deal with. But even so, taking a moment to read this article can help you save a lot of money.

1. Using the wrong health insurance provider

The premiums charged for the exact same health insurance differs massively from one insurer to another. You can end up paying more than 200 francs per month too much by using the wrong health insurance provider. The most expensive offers are nearly twice as expensive as the cheapest offers.

Tip: Taking a minute to compare mandatory health insurance offers is worth it. Bear in mind that you do not need to get mandatory health insurance from the same insurance provider that you get your supplemental health insurance from.

If you expect to have a lot of healthcare expenses in the coming year, then it is important to look at the service as well as the price. Budget insurance providers may be cheap, but some have a reputation for low customer satisfaction and tardiness in paying out benefits.

2. Choosing the wrong insurance deductible

Many residents of Switzerland choose the wrong insurance deductible – a mistake that can add more than 100 francs per month to your mandatory health insurance bill.

Important: For adults, the optimal insurance deductible is always either the lowest or the highest possible deductible. All other deductible options do not pay off, mathematically speaking.

Tip: On average, the 300-franc deductible is the best choice if your covered healthcare spending for the year is at least 1900 francs. If your combined medical bills are lower than that amount, then you will save money by using the 2500-franc deductible. Depending on the insurance model, the threshold for healthcare expenses above which the 2500-franc deductible is cheaper can also be as low as 1400 francs or as high as 2000 francs. You can find more information in the guide to choosing the right health insurance deductible.

The mandatory health insurance comparison includes an optimal deductible option that helps you find the right deductible based on your expected medical expenses.

3. Picking the wrong insurance model

Many residents use the expensive standard model of mandatory health insurance, costing them hundreds of francs extra every year.

Tip: Using a cheaper managed care insurance model limits you to using a gatekeeper as a first stop for medical care, in most cases. That means you will have to first visit a family doctor, a pharmacy, or HMO healthcare center, or communicate remotely with a telemedicine center. In exchange for the limitations of the family doctor, HMO, telemedicine, or pharmacy models, you get much lower insurance premiums.

4. Keeping unnecessary accident coverage

Many residents pay hundreds of francs a year for accident coverage from their mandatory health insurance provider even though they already have employer-based accident insurance.

Tip: If you are employed by one Swiss employer at least eight hours per week, the you should already be insured by employer-based UVG/LAA accident insurance. In this case, you can exclude accident coverage when you get mandatory health insurance to lower the insurance premium. An advantage of employer-based accident insurance is that unlike accident coverage from mandatory health insurance, there is no deductible or coinsurance.

5. Forgetting to apply for premium reductions

Many residents who are entitled to health insurance premium reductions miss out simply because they forget to apply. That can be a costly oversight because depending on the canton, health insurance premium region, and your income, premium reductions can knock more than 2000 francs per year off your mandatory health insurance bill.

Tip: Inquire at the relevant cantonal office for the exact amounts and criteria applicable to health insurance premium reductions at your address.

6. Not filing claims for medical bills

The indirect claim settlement system – called tiers garant in Switzerland – is still widely used by Swiss health insurance providers. In this system, medical bills are sent to you. It is then up to you to pay the bills and then claim benefits from your insurance provider to reimburse the covered costs. With the more customer-friendly direct claim settlement system (tiers payant), on the other hand, medical bills are charged directly to your health insurance provider.

When indirect claims settlement is used, it is easy to forget to file insurance claims to recover the costs. Many people end up covering bills out of their own pocket because they forget to claim reimbursement.

Tip: Always file an insurance claim immediately as soon as you receive a medical bill.

7. Not using discounts

Some providers of mandatory health insurance offer discounts when you pay your insurance premiums semi-annually or annually instead of monthly.

If you can afford to make a large payment in advance, you can get discounts of up to two percent for paying your premiums for the whole year in advance.

Tip: Ask your health insurance provider whether they offer discounts for semi-annual or annual premium payments. You can also find a good overview of these discounts in the guide to premium discounts for mandatory health insurance.

More on this topic:
Compare mandatory Swiss health insurance offers now
Compare voluntary supplemental health insurance offers
Compare voluntary supplemental hospital insurance offers
How to choose the right health insurance deductible