Prices of medicines in Switzerland – FAQs
For good-quality healthcare, it is important to ensure access to essential and innovative medicines. At the same time, the health system must remain affordable. The FOPH is responsible for striking the right balance. Here, you can find out more about the challenges involved in setting prices for new medicines, and the solutions adopted.
Healthcare costs are among the main concerns of the Swiss population. Rising premiums are placing a growing burden on households. Medicines account for over 20 per cent of costs in the compulsory (basic) health insurance system. Rising drug prices are thus contributing to the increase in basic health insurance premiums.
In connection with access to new medicines in Switzerland, a number of questions are frequently addressed to the FOPH. Our answers to these can be found here:
How do new medicines enter the market in Switzerland?
To provide access for patients to medicines reimbursed under basic health insurance, two steps are required:
- the Swiss Agency for Therapeutic Products Swissmedic grants marketing authorisation and
- the FOPH includes the product in the List of Pharmaceutical Specialties (SL). This involves assessing whether it is sufficiently effective to be reimbursed under basic health insurance and setting the maximum price that will be paid for the medicine by health insurers.
List of Pharmaceutical Specialties
The List of Pharmaceutical Specialties includes all the medicines that are covered by basic health insurance in the outpatient sector. For listing, the FOPH considers the following criteria (EAE):
- effectiveness
- appropriateness
- economic efficiency
Also involved in the review is an extraparliamentary expert body, the Federal Pharmaceutical Commission (EAK) (available in German, French and Italian).
Criteria for pricing
When a medicine is included in the List of Pharmaceutical Specialties, the FOPH sets a price for the basic health insurance system. The price is determined on the basis of two legally specified factors:
- The internal reference price, which is determined by comparing the price of the new medicine with products already reimbursed for the same indication (disease).
- The external reference price, which is determined by comparing the prices for the same medicine in nine European reference countries.
- In addition, conditions and requirements are specified to ensure compliance with the EAE criteria.
How do the costs of medicines in Switzerland affect health insurance premiums?
In Switzerland, expenditure on medicines in the outpatient sector currently amounts to CHF 9,2 billion. That is equivalent to roughly a fifth of total basic health insurance costs.
The past ten years have seen a disproportionate rise in the costs of new medicines listed in the SL. These are now, on average, more than 50 per cent higher than ten years ago. As premiums follow costs, a sharp increase has a direct impact on the level of health insurance premiums.
How high are the prices of medicines in Switzerland compared to other countries?
Compared to other European countries, Switzerland has the highest prices and the highest per capita costs for medicines. This has been shown by various international studies, e.g. a recent analysis conducted by the Swedish Dental and Pharmaceutical Benefits Agency: International price comparison 2024.
The relatively high prices mean that innovation is already richly rewarded in Switzerland today. Together with other federal offices, the FOPH seeks to promote fair framework conditions for the pharmaceutical industry.
How does Switzerland rate in terms of access to medicines for patients?
Switzerland offers good access to medicines. In various international studies, Switzerland is among the top-ranking countries in Europe. In an EFPIA survey, Switzerland comes in fourth place in Europe for access to novel medicines and in second place for oncology medicines: The Patients W.A.I.T. Indicator 2025: Access to Innovative Medicines in Europe (IQVIA).
What happens if a patient urgently requires a medicine which is not yet approved in Switzerland?
If a patient urgently requires a life-saving medicine which has not been approved by Swissmedic or is not included in the List of Pharmaceutical Specialties, the option of reimbursement in individual cases is available. This measure, unique to Switzerland, enables patients to gain rapid access to urgently required, life-saving medicinal products.
Why are pricing negotiations between the FOPH and pharmaceutical companies taking longer than in the past, thus delaying reimbursement?
In a study published in January 2024, the Swiss Federal Audit Office confirms that the turnaround times of the FOPH and Swissmedic are internationally competitive: Audit of licensing and remuneration processes for medicines (report in German including an English summary). The study also explains why reimbursement may nonetheless be subject to delays.
The duration of the authorisation process also depends on the pharmaceutical companies’ cooperation with the FOPH and Swissmedic. Companies often submit applications for authorisation and reimbursement of a medicine in Switzerland significantly later than would actually be possible. This is partly due to the relatively small size of the Swiss market. Companies often prioritise authorisation in countries with a larger population and thus a bigger market. This is particularly apparent in the case of rare diseases, for which the market is already automatically limited.
The main reason for delays, however, are the extremely high prices requested by pharmaceutical companies. At the same time, improvements in processes continue to be required so as to counteract delays.
What steps are being taken to improve the situation regarding the pricing of medicines?
In close collaboration with the stakeholders concerned, the price-setting process is being updated. For example, since January 2024, new measures have been in force whereby reimbursement of certain medicines is possible at the same time as Swissmedic marketing authorisation. This means that these products can be covered by health insurers at the earliest possible time.
In addition, in March 2025, the Swiss Parliament made important decisions on medicines as part of the cost containment measures package 2 (available in German, French and Italian). This will involve not only modernisation of the price-setting process but also the implementation of measures to further improve access and care.
The FOPH is already developing provisions for the relevant Ordinance – in consultation with representatives of the stakeholders concerned (pharmaceutical industry associations and insurers). The consultation procedure is scheduled to begin at the end of 2025.
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Federal Office of Public Health FOPH
Schwarzenburgstrasse 157
Switzerland - 3003 Bern