Switzerland Healthcare Costs 2027: 110 Billion Forecast

by drbyos

Health spending in Switzerland will reach nearly 110 billion francs in 2027, according to the latest forecasts from the KOF. They will cross the 100 billion mark this year, up 3.7% compared to 2024.

Health costs will continue to increase at a faster rate than in the past, the Economic Research Center (KOF) at the Swiss Federal Institute of Technology in Zurich indicated on Tuesday. For 2025, these expenses are estimated at 102 billion francs.

The increase is expected at 3.6% next year, to come close to 106 billion francs. For 2027, spending will reach 109.6 billion (+3.5% over one year), according to KOF forecasts commissioned by Comparis and published each fall. Long-term care is the biggest cost driver.

We should not expect to see the growth in spending slow down, because the consumption of health services is increasing, writes the KOF. Over the period 2024-2027, the average annual increase should be 3.9%, compared to 3.1% over the previous ten years.

Growing share of GDP

In macroeconomic terms, the sector is becoming increasingly important: its share in gross domestic product (GDP) is expected to increase from 8.9% in 1997 to 12.2% by 2027. In the ranking of the 38 OECD countries for the year 2024, Switzerland occupies fourth place in this respect, behind the United States, Germany and Austria, and ahead of France.

After long-term care, it is outpatient treatments that are causing the bill to skyrocket while inpatient care is losing ground. Expenditures are therefore driven up by medical practices and outpatient centers, hospitals and nursing homes.

Retail, mainly pharmacies, contributes only slightly to cost growth. The State’s share was reduced after a jump linked to the Covid-19 pandemic. On the financing side, compulsory health insurance (AOS) continues to bear most of the increase in costs, which implies an increase in premiums.

12,000 francs per person

In 2027, health spending will exceed 12,000 francs per person, Comparis calculated in a separate press release on Tuesday. For its health insurance expert Felix Schneuwly, these costs are “bearable” as long as economic growth is maintained and their share in GDP remains between 11 and 12%.

According to the expert, the fact that outpatient care is developing faster than inpatient treatment is positive. But he sees a challenge in long-term care: the number of elderly people who receive care and support at home is growing rapidly.

Felix Schneuwly calls for clearer regulation of paid care provided by relatives. According to him, home aid and care organizations, but also health insurance companies and authorities “interpret” the care directives in different ways. In addition, due to the lack of a separate census, precise figures on the extent and costs of care for relatives are lacking.

ats/lan

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