4 External Key Factors that Drives the Rise in Health Insurance Premium

Presently the Switzerland Healthcare market is experiencing a continuous rise in the cost of medical expenditure. However, it is a mandate for every resident living in Switzerland to be insured by a basic health insurance policy. An individual covered by a health insurance policy is liable to receive medical treatments and facilities during the time of medical emergencies. A health insurance plan acts as a safeguard for medical uncertainties. Every year the insurance companies in Switzerland announce their premium charges based on some important factors and considerations. These factors are liable to increase or decrease the premium charges. Comparatively, over the years the premium charges in Switzerland have seen a continuous steady increase. 

In Switzerland, laws regarding health insurance are looked over and governed by the Switzerland Federation of Law. The federation tries to limit and control the charges of health insurance premiums in the country. They maintain a strict policy regarding the health insurance premium charged by the companies to the citizen. The charges are controlled in order to avoid the exploitation of customers. A health insurance policy covers charges for medical treatments such as doctor’s fees, ambulance charges, hospital rent, etc. A health insurance premium is mostly depended on the wideness of health insurance coverage, apart from the coverage there are other different external factors that affect the premium charges. The main 5 key factors driving the rise in health insurance premiums include:

1. Medical and technological progress

With every passing year, medical companies in Switzerland brings in new technologies in the market with improved facilities that make the cost of the medical treatments expensive. Moreover, improved technology remains high in demand by the customers for a better treatment option.

2. New and expensive medicines

Medical companies continuously keep introducing new formulas in the market. Newly developed medicines are expensive in nature as their formulation is newly introduced in the market. New and improved medicines are generally expensive in nature. Therefore they are one of the most important external key factors which drive a rise in the health insurance premium.

4. Greater life expectancy

With better medical treatments and medication, the life expectancy of an individual in Switzerland has increased widely. The pollution-free and clean environment of Switzerland is also one of the reasons to increase the life expectancy of an individual living in Switzerland. Based on increased life expectancy in Switzerland insurance companies have started to charge higher health insurance premiums.

5. Constantly increasing expectations of policyholders, who want to draw more and more benefits

Often a policyholder goes to the doctor, takes medication, needs care or undergoes surgery, the higher the benefit costs and this ultimately has an impact on health insurance premiums. These services that are often used by the policyholder does increase the premium charges.

These were some of the important external factors that contribute to increasing the amount of health insurance premiums. However, the authority keeps an ideal view on the premium charges so as to make buying health insurance affordable to all. The Switzerland government also provides subsidies to middle-low income group individuals for buying health insurance premiums.