Government votes to spend 2 billion Swiss francs to chop medical insurance prices

The Swiss National Council has authorized a plan to speculate 2,2 billion francs to attempt to cut back the price of health insurance in Switzerland. With the value of insurance set to rise significantly this year, the government hopes the additional cash will ease the monetary burden on residents.

2,2 billion franc medical insurance subsidy is a political compromise

The invoice in query is a “counter-proposal” to a law proposed by the Social Democratic Party (SP), which known as for medical insurance prices to be capped at 10 p.c of an individual’s salary. After a prolonged debate, the compromised legislation handed the council by 119 votes to 66.

National councillor Pierre-Yves Maillard described the compromise as “a step in the fitting path.” Advocates for the counter-proposal had been buoyed by the truth that the legislation had a variety of political assist, with even some within the SP voting for the compromise.

Plan designed to subsidise medical insurance suppliers in Switzerland

As a part of the plan, 2,2 billion Swiss francs can be given to Swiss cantons in order that they’ll subsidise insurers which can be caught out by the rising price of healthcare. So-called “premium reductions” are already utilized by most cantons, however the coverage is about to considerably enhance the sum of money out there for reductions and also will set out a minimal subsidy that cantons should pay to assist their residents.

The subsidies can be given to suppliers of each primary and supplemental health insurance packages. The authorities hopes that the additional funds to insurers will enable them to put-off premium rises for a yr. If the legislation passes, the federal government is about to spend 7,2 billion Swiss francs on making an attempt to cut back premiums this yr.

Others aren’t satisfied giving more cash to insurers is the fitting concept

Others are usually not so satisfied that the cash will remedy the problem, with National Councillor Regine Sauter noting that healthcare prices must be lowered instantly so as to deal with the issue in the long run. National Councillor Andreas Glarner known as the discount a “placebo,” saying that there have been “tons of” of different methods to deal with rising prices that do not contain such a excessive worth.

The invoice will now be handed to the Council of States for approval. However, Tages Anzeiger reported that if the proposal doesn’t get sufficient assist, a referendum is probably going.

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