Basic and supplementary insurance: Can splitting save you money?

Health insurance premiums are going up, even for next year. But there is a simple way of saving money that not many people take advantage of: splitting. Advantages and disadvantages at a glance.

Although there isn't expected to be a premium shock due to the coronavirus crisis, the insured can expect a rise of some 3% according to the internet comparison site comparis.ch. The additional costs for the (at least) two million employees who were affected by short-term work or lost their jobs because of the lockdown will be particularly painful, as they have to manage with a reduction of up to 30% in household budgets. (Source: comparis.ch) But if you act now, you still stand to make savings next year despite rising premiums. The simplest way is by splitting, i.e. carefully separating basic and supplementary insurance.

Substantial potential through splitting

The benefits offered under basic health insurance are clearly defined in the Health Insurance Act (KVG) and are the same for all health insurers. Yet premiums can vary significantly between the various providers. This is why it is worthwhile comparing premiums  regularly and switching to the fund with the best-value rates. By switching to a different basic insurance, an individual can save up to CHF 500 a year, while a family can save as much as CHF 2,000. The situation is different for supplementary insurance where the premiums are often unchanged over a long period, and when they do change, this is normally minimal in financial terms. In short: if you have found a supplementary insurance deal that meets your individual needs, you can retain this insurance in the long term.

Each year,  conveniently switch to the best-value insurer

Even though splitting is an easy way of reducing your healthcare costs, most insured persons do not take advantage of this method. Many worry that it will create more paperwork if they have their health insurance with various providers. This is actually the major disadvantage with splitting,
but AXA offers you an easy solution for this: As part of the exclusive service package for our supplementary health insurance, we do this work for you. Each year, we’ll find the best basic insurer for you and will also take care of all the paperwork – from terminating your current insurance to registering you with your new insurer. This saves you both time and money.

Health insurance: Savings tips

• Increase your deductible. 
  If you're healthy, rarely go to the doctor and have sufficient financial resources for unforeseen circumstances, you should choose the highest deductible (mostly CHF 2,500), otherwise you would be better to stay with the lowest deductible (CHF 300). It is not normally worth choosing any in-between levels.
• Change your insurance model.
  The standard model from basic insurers is the most expensive. It can therefore be worthwhile choosing an HMO, house doctor or Telmed model. Important: Check first whether the chosen model actually meets your needs (free or limited choice of doctor, coverage in your region etc.).
• Pay your premiums semi-annually or annually if you can afford to do so. 
  Some health insurers give up to a 2% discount if you pay in advance. Contact your health insurer for more information.
• Check whether you are entitled to an individual premium reduction for basic insurance. 
  This is the case for almost 30% of the Swiss population – mainly children, young adults and the elderly . Contact your municipality if you're not sure.
• Changing your health insurance company: Plan ahead and note down important deadlines in your diary.
  > Supplementary insurance: Termination possible until September 30 . Please note: The new insurer will ask for information about your state of health. As a result, don't terminate the previous supplementary insurance until you've been accepted by the new one!
  > Basic insurance: Termination possible until November 30 . You can register with another basic insurer until December 31; any basic insurer must accept you. This means that your state of health doesn't make any difference.