Swiss Social Democrats propose credits to ease rising health premiums

The Swiss Social Democratic Party (SP) has unveiled a plan to ease health insurance costs for 90 percent of the population, with the cost covered by higher taxes on wealthy people and companies, SRF reported. The proposal comes ahead of the federal government’s announcement on Tuesday of next year’s premium increases; premiums are expected to rise again.

Under the initiative, adults would receive credits worth two average monthly premiums nationwide, while children would receive credits worth six months of premiums. The SP says this would make premiums free for most families with children. Existing cantonal premium subsidies would remain in place.

The party proposes a new federal tax surcharge on high incomes and companies’ net profits. It says only the wealthiest 10 percent of the population would pay more, following a principle similar to that of the old-age and survivors’ insurance system, in which people who earn more pay more.

The plan resembles an earlier SP initiative rejected by voters in summer 2024. That proposal would have capped health insurance premiums at 10 percent of a household’s disposable income. Other parties criticised it for redistributing costs without tackling the causes of rising healthcare spending.

Centre politician Lorenz Hess called the new proposal “symptom management” and said it would only redistribute costs. He argued that costs rise because people use many healthcare services each year.

SP co-president Mattea Meyer said the party was also working to lower medicine prices and prevent pharmaceutical companies from making billions in profits at the public’s expense. She said people needed immediate relief from high premiums.

The SP says its initiative would require few changes to the healthcare system and could be implemented quickly. Consumers would retain their choice of deductibles and insurance models. The party plans to begin collecting signatures in mid-November.