FOPH: Federal Council Rejects Payment-on-Account System for Health Insurance

12 December 2025

FOPH: Federal Council Rejects Payment-on-Account System for Health Insurance

At its meeting, the Federal Council considered a proposal to reform the system for setting health insurance premiums. The proposal called for replacing the current premium model with a payment-on-account system, similar to that used for taxation, comprising an advance payment-on-account followed by a final settlement. The Federal Council rejected the proposal, concluding that such a payment-on-account system would give rise to numerous practical difficulties and that, in its view, the disadvantages would outweigh the potential benefits.

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