Health insurance costs expected to increase again

Health insurance costs, which already pose a major financial burden for most Swiss families, are expected to rise again next year, with analysts forecasting an average increase of 3 to 4 percent for basic insurance.

Health insurance costs, which already pose a major financial burden for most Swiss families, are expected to rise again next year, with analysts forecasting an average increase of 3 to 4 percent for basic insurance.

Basic insurance – as opposed to supplementary insurance service — is compulsory for people living in Switzerland. The Federal Social Security Office can impose premium caps if it finds that insurance companies are charging consumers too much for basic insurance.

The office will announce its price rulings in early October.

“We expect an increase of up to 4 percent,” said a spokesman for the Swiss Association of Insurance companies, describing such an increase as “acceptable.”

Inflation in Switzerland currently stands at 0.9 percent.

Insurance companies say the expected increase is due to the continuing rise in health costs, particularly hospitals and care centres. Costs for medication also rose by 9 percent in the first half of this year, the spokesman said.

Insurance companies had to present their pricing proposals to the federal authorities by the end of July, but the social security office refused to comment on how much premiums might go up in 2000.

Last year, the office noted 400 cases where it rejected insurance company proposals and forced insurance premiums down by as much as 10 percent.

From staff and wire reports.