Background

Mandated Health Insurance

The Swiss health care system is the second most expensive in the world, after the United States, spending 11,6 percent of their GDP on healthcare, according to Frontline, and is ranked 20th in quality, in a 2007 report by the World Health Organization. There is no state-funded health care in Switzerland. All residents are required by law to acquire health insurance within three months of arriving (or being born) in the country. Because of this, insurers are required to insure everyone, regardless of age, state of health, and with no waiting period, and insurance companies are not allowed to make a profit on basic plans. Their profits come from selling supplemental coverage, which many people decide to omit.

The Federal Health Insurance Law (LAMal) was passed in 1994, ensuring universal coverage for the entire population through a mandatory basic insurance requirement. Those who refuse to choose an insurance company will be assigned one by the government and will be responsible for paying the premiums assigned, so most opt to shop around to find the best deal. Nevertheless, at the time the law was passed, 95 percent of the population already had voluntarily taken up private health insurance policies. Many individuals with low incomes receive government subsidies to help pay their annual premiums.

The Federal Office of Public Health (FOPH) is responsible for all health-related issues in Switzerland.