Rising electricity prices, rising petrol prices. Mr. and Mrs. Schweizer’s wallet is currently being claimed. According to experts, health insurance premiums will be even higher next year. Premiums for compulsory health insurance could increase by five to ten percent. This is particularly uncomfortable given that premiums have fallen this year for the first time since 2008.
Reserves are double the legal minimum
At the same time, health insurance companies hold billions in reserves. Specifically, 12.4 billion last year, according to the latest figures from the BAG. The average solvency ratio last year was 207 percent.
That’s more than twice what the law requires. An insurance company therefore has enough reserves to remain solvent for another year – even if an event occurs that causes extraordinary costs.
The coffers have accumulated horrendous reserves. This is money that policyholders have overpaid in the past.
That is why Reto Wyss, Central Secretary of the Swiss Trade Union Confederation, is now calling for the impending increase in premiums to be cushioned by reducing reserves: “The health insurance funds have accumulated horrendous reserves. This is money that policyholders have overpaid in the past. We still have the necessary leeway to reduce reserves.”
The requirement is not new. In the past, the Federal Council has already put pressure on voluntarily reducing reserves. In 2021, according to the BAG, the funds will then have a reserve reduction of 380 million Franconia announced. The Federal Council also asked the health insurers to calculate premiums tightly in order to then compensate with the reserves.
Reserves will collapse by about a third this year.
According to the health insurance associations, this is one of the reasons for the coming yo-yo effect of the premiums. “The reserves have just been reduced. And it’s just this yo-yo effect now. The premiums must now rise sharply,” says Christoph Kilchenmann from Santésuisse.
According to Kilchenmann, a further reduction in reserves is risky: “The sharply rising costs can no longer be cushioned by further reductions in reserves. The reserves will collapse by about a third in the current year.”
A reduction in reserves jeopardizes financial security
The main reasons are the costs, which have risen much more than expected, the consequences of the pandemic and the difficult stock market environment. “If you were to continue using reserves and calculate a loss next year, that would seriously jeopardize the financial security of health insurers,” Kilchenmann continued.
Wyss from the Swiss Federation of Trade Unions refers to the law: “Of course, you need a little reserve. We can rely very well on the Federal Council, which provides for a solvency ratio of 100 percent. It doesn’t need more. Today we are at a multiple. We have enough leeway to cut back on almost all cash registers.”
More clarity in the fall
Concrete figures on the reserve situation at the beginning of 2022 are not yet available and the FOPH is also not allowed to comment on a reserve reduction until the premium communication in autumn. But says: “The solvency ratio of the funds at the beginning of 2022 is expected to be between 140 and 170 percent. So there is no evidence that the financial security of the cash registers is at risk.”
The question of how high reserves should be is likely to keep the healthcare system busy in the future, regardless of the level of premiums next year. Because the Council of States will deal with a proposal that requires a maximum amount of reserves.