Health insurance: Premium subsidies
The cantons reduce the insurance premiums of policyholders living in modest economic circumstances. Premium reductions are jointly financed by the federal government and the cantons. The cantons are subject to minimum requirements regarding the financing of premium reductions. In return, the federal government provides them with an annual contribution.
Do you have any specific questions about your personal circumstances? If so, please contact the authority responsible for your canton of residence. You can find their details under the following link:
Priminfo - Premium subsidies (in German, French and Italian)
Principles of Premium Reduction
Every person residing in Switzerland must have health insurance (mandatory insurance). The mandatory health care insurance (OKP) provides all insured persons with access to the same medical services. Health insurers set the insurance premiums uniformly per person — independent of income — based on factors such as place of residence and the chosen insurance model.
As a form of social compensation for this uniform premium, the cantons reduce the premiums of those in modest economic circumstances. For families with lower and middle incomes, the cantons must reduce children’s premiums by at least 80 percent and the premiums of young adults in education by at least 50 percent.
Eligibility for Premium Reductions
Each canton determines who is eligible for premium reductions. Within the framework of federal regulations, it decides to whom it grants premium reductions and by what amount. It thus defines the group of beneficiaries, the level of reduction, the procedure, and the payment modalities. Some cantons grant premium reductions automatically, without requiring an application. In other cantons, insured persons must apply for premium reduction. Applications must be submitted to the competent cantonal authority (see Further Information > Premium Reduction – Priminfo or Documents > Cantonal Offices Responsible for Premium Reductions).
The cantons take into account the most up-to-date income and family situation when assessing eligibility for premium reductions. They must do so in particular when requested by the insured person.
In addition, they ensure that premium reductions are paid to the health insurers in such a way that policyholders do not have to advance the full amount of their premiums.
The cantons pay the premium reduction directly to the health insurers of entitled individuals. The insurers then reduce the policyholder’s premium accordingly.
The cantons take into account the most up-to-date income and family situation when assessing eligibility for premium reductions. They must do so in particular when requested by the insured person.
In addition, they ensure that premium reductions are paid to the health insurers in such a way that policyholders do not have to advance the full amount of their premiums.
Financing by the Federal Government and Cantons
Premium reductions are jointly financed by the federal government and the cantons. The federal government pays the cantons an annual contribution amounting to 7.5 percent of the gross costs of mandatory health insurance. The federal contribution automatically increases as the costs of mandatory insurance and thus the premiums rise. It is distributed among the cantons based on their resident population (including cross-border commuters). The cantons supplement this federal contribution with their own funds.
On January 1, 2026, the indirect counterproposal to the “Prämien-Entlastungs-Initiative” will come into force. It obliges the cantons to contribute a certain minimum annual share to the financing of premium reductions. The minimum contribution corresponds to a specific percentage of a canton’s gross costs and depends on the premium burden of its lowest-income insured persons (see Further Topics > Amendment of the Health Insurance Act (Premium Reductions) as Indirect Counterproposal to the Premium Relief Initiative). The cantons’ minimum contributions are available under “Documents” (Mindestbeiträge der Kantone und Anteile der Kantone am Bundesbeitrag zur Finanzierung der Prämienverbilligung 2026).
Monitoring of Premium Reductions
The federal government periodically reviews the effectiveness of premium reductions. For this purpose, it commissions a company outside the administration. The last comprehensive evaluation of the effectiveness of premium reductions was conducted in May 2022 using 2020 data. The results are available in the Federal Office of Public Health’s monitoring report on premium reductions (see Further Topics > Premium Reduction Monitoring).
Further information
Federal Office of Public Health FOPH
Insurance Supervision Division
Schwarzenburgstrasse 157
Switzerland - 3003 Bern