In the 20th century Switzerland built an extensive social safety net which is the envy of many other countries. But despite fundamental changes in the way we live and work in recent decades, our welfare system continues to mirror the social structures of the 1970s. Added to this, advances in medicine and the resulting increase in life expectancies have changed our expectations of healthcare, in some cases with serious cost implications. These developments are tying up increasing amounts of taxpayers’ and premium-payers’ money and social security contributions, and are placing a burden on businesses and individuals. Avenir Suisse develops strategies that will allow the Swiss welfare state to (again) be financially sustainable in the medium to long term and improve prosperity per franc invested.
The Unintended Consequences of Premium Subsidies in Health Insurance
Individual premium subsidies are intended as a social policy tool for low-income households. Yet they also create incentives for beneficiaries to choose lower deductibles and, as a result, consume more medical services than may be necessary.
