Swiss Health Care System Could Provide Model for US
Switzerland’s move in the 1990s to a consumer-driven universal health care system could serve as a model for the US as it contemplates reform in the next Presidency. However, the Swiss system can be improved upon with less regulation and more consumer choice, Oxford Analytica says in a new report Swiss health system offers key lessons.
Key elements of the Swiss system:
Insurance coverage is mandatory – compliance is enforced by heavy fines and forced enrolment. This ‘compulsory insurance’ provides a safety net for the poor and protects people from health-related financial risks.
Health insurance is supplied privately - Insurers must offer a basic coverage model that is compulsory for all residents, are not allowed to make a profit on compulsory insurance and cannot refuse any applicant.
Insurers cross-subsidise the compulsory plans with ‘complementary insurance’ – offered as a top-up to the compulsory coverage for things like dental care and private hospital rooms — for which premiums can be risk-adjusted for age, gender and history.
Insurers compete on deductibles, complementary plans and managed care schemes.
Switzerland has generally avoided quality, access and provider compensation concerns associated with a single-payer system (such as the UK National Health Service), while providing universal coverage at a much lower cost compared to the US.
Although Switzerland spends a considerable amount on healthcare, this is still far less than the US figure (11.3% of GDP versus 15.3% in 2006). Swiss spending per capita, approximately 4,300 dollars in 2006, was comparable to what Norwegians and Luxembourgers spend, but was far lower than the approximately 6,700 dollar US outlay.
In addition, because insurance is bought by individuals and not through an employer, Swiss firms are unaffected by rising healthcare costs. This offers a distinct advantage over the current US model in which companies, which shoulder much of the cost of health insurance, are struggling to cope with rising health insurance premiums.
However, the Swiss system has had some problems, including ineffective cost containment and overregulation.
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