Swiss government backs cap on health insurer executives’ pay

The Swiss Federal Council wants to limit compensation for health insurer executives and supports a proposal by the relevant parliamentary committees, SRF reported. It has called for a simpler mechanism than the one set out in the draft.

The proposal by the National Council’s Social Security and Health Committee would introduce a maximum payment for members of insurers’ executive and governing bodies for their work in basic health insurance.

The committee’s draft would link the cap to the maximum salary in the highest pay category of the federal administration. It would be adjusted for inflation and take into account the number of insured people and average total costs per insured person.

The Federal Council instead proposes setting the limit at the salary of a member of the Federal Council. According to the Federal Chancellery, a Federal Council member’s gross annual income is 478,166 Swiss francs as of January 1, 2026. The government said this approach would already account for inflation adjustments.

The proposed rules would also require basic health insurers to publish the compensation and employment levels of all executive and governing body members, naming each individual.

Excessive compensation for health insurer executives has been debated in parliament for years. In summer 2023, the Council of States rejected a proposal to cap the annual pay of health insurer executives at 250,000 francs, with the majority saying the proposed amounts were too rigid. The Federal Council also opposed that proposal at the time.

Health insurers currently have broad autonomy in setting compensation for members of their governing bodies. Switzerland’s Health Insurance Act contains no corresponding pay cap. Media reports based on annual reports said health insurer chief executives earned up to one million francs in the early 2020s.

The Federal Council said a pay cap would probably do little to reduce insurers’ administrative costs or health insurance premiums. It said the proposal nevertheless reflected public frustration over steadily rising premiums and high compensation for insurer executives. The government also welcomed the expanded disclosure requirements, saying full transparency could encourage greater restraint when compensation is set.

The National Council committee will consider the proposal again before it is submitted to parliament.