Every year, Swiss residents receive letters from their insurance providers announcing higher health insurance premiums. In 2025, the average cost of basic insurance (LAMal) increased by another 6.6% — the highest rise in the past decade. For many families, single people, and pensioners, this has become a serious financial burden.

To support those with modest incomes, Switzerland offers a state subsidy called Prämienverbilligung — a financial contribution that reduces the amount you pay for your health insurance premiums. This is not a social benefit, but a legal right for anyone whose income is below the defined threshold.

How the Prämienverbilligung System Works

The Prämienverbilligung program is part of the Federal Health Insurance Act (KVG / LAMal). It ensures that every person in Switzerland can afford basic health coverage, regardless of income.

Funding is shared between the federal government and the cantons.

While the Confederation provides financial resources, each canton independently defines who is eligible, the income limits, and how the application process works.

The subsidy is paid directly to the insurance company, so the insured person simply pays a reduced monthly premium — the difference is covered by the state.

In 2024, more than 2.3 million people in Switzerland received this support — about 27% of the total population.

Who Is Eligible

You are entitled to Prämienverbilligung if you:

• permanently reside in Switzerland;
• have basic health insurance (Grundversicherung / LAMal);
• have low or moderate income;
• have submitted a tax declaration in your canton.

Eligibility and income thresholds vary by canton. For example:

• In the Canton of Zurich, individuals earning up to CHF 35,000 per year qualify.
• In Bern — up to CHF 36,000.
• In Vaud — up to CHF 40,000.

Foreign residents with permits B, C, F or S are also eligible if they live and pay taxes in Switzerland.

For individuals already receiving AHV or IV benefits, the premium reduction is usually granted automatically.

How to Apply

The process differs slightly by canton, but the general steps are the same:

1. Contact your cantonal social insurance office (SVA) or visit your canton’s official website.
2. Complete or download the online application form — in some cantons, it is sent automatically.
3. Attach the required documents: your tax declaration, insurance details, and residence permit.
4. Submit the application by the official deadline — usually by November 30 of the current year.
5. Wait for the decision. If approved, the subsidy is transferred directly to your insurance company, which automatically reduces your premium.

How Much You Can Save

The amount of financial support depends on income, household size, and the average premium in your canton.

Typically, the subsidy covers between 30% and 70% of total insurance costs.

For example, if your monthly premium is CHF 420, after Prämienverbilligung you might pay only CHF 150–200.

For children and students, the government often covers the full premium amount.

Important to Know

• The subsidy is granted for one calendar year and must be renewed annually.
• If your income increases, the canton may reduce or cancel the subsidy.
• Failure to report income changes can result in repayment of overpaid amounts.
• When moving to another canton, a new application must be submitted to the new canton of residence.

Why It Matters

Prämienverbilligung is not a charitable gesture — it is a core element of Switzerland’s social health care system, ensuring equal access to medical care for all.

For thousands of families and individuals, this program provides real financial relief, allowing them to maintain economic stability without giving up quality health care.

If your income is limited, check your eligibility and apply for Prämienverbilligung. It is your legal right and a practical way to save thousands of francs each year.

Sources:

• Federal Office of Public Health (BAG)
• Federal Portal Prämienverbilligung
• SVA Aargau
• SVA Zürich
• Canton de Vaud — Réductions de primes