Premium Subsidy at the Insurer: Who Is Entitled?

Health insurance premiums burden many Swiss households. Compando explains who is entitled to the individual premium subsidy and how the application works.

Arben Salihaj
Arben Salihaj
Updated on 03.08.2026
Budgetplanung, Geldsparen und Finanzen zu Hause

1. What is the individual premium subsidy?

When the mandatory health insurance claims too high a share of your income, the federal government and canton of residence pay part of your insurance premiums. This relief is called individual premium subsidy (IPV) and reduces your monthly premium directly. In Switzerland, over two million insured persons benefit annually, which corresponds to about every fourth insured person.

The IPV applies exclusively to mandatory basic insurance, not to supplementary insurance. The amount and entitlement are set by each canton independently; the federal government finances around 50 percent under Art. 66 KVG.

How does the payout work?

The cantonal compensation funds or social welfare offices transfer the amount of the premium subsidy directly to the insurer of the insured person. The premium invoice drops by the amount of the premium subsidy. If your application is approved only during the course of the year, most cantons reimburse the overpaid premiums retroactively.

Good to know: In the Swiss health insurance system, the benefits of basic insurance are identical at all insurers. A lower premium through IPV or through an insurer switch does not mean loss of benefits; the benefits remain identical.

Anyone who has no entitlement to IPV can lower the premium burden via other paths: choice of a higher deductible, switch to a cheaper insurance model such as family doctor or HMO, or a switch to a cheaper insurer. The range between the most expensive and cheapest insurer is on Swiss average several hundred francs per month.

Save on premiums additionally

Independent of the premium subsidy, the switch to a cheaper insurer pays off: premiums differ considerably between providers, models and deductibles. Compando compares all Swiss insurers for your place of residence and your profile.

Calculate health insurance premiums

2. Who is entitled to premium subsidy?

The exact calculation of the IPV differs per canton. Three criteria are decisive in all cantons:

Criterion

Reference value

Income

Taxable or relevant

Wealth

Taxable, allowances vary

Household

Single, couple, with children

The cantons mostly rely on tax values that lie two years back. For persons taxed at source, the reference period can reach back up to three years. Anyone who is new to Switzerland or has a currently lower income should check the application, even if the old tax bill was above the limit.

Quick check: entitlement likely if all three points apply

  • You live in Switzerland and are mandatorily health-insured
  • Your net income is below the cantonal income limit
  • The cost participation and premiums burden your household budget noticeably

The Swiss Conference of Cantonal Health Directors (GDK) keeps an overview of all cantonal calculation bases. Decisive remains, however, always the information from your cantonal compensation fund.

Life situation and change of entitlement

Four frequent situations can trigger a new or changed entitlement:

Situation

Action option

Income decreased

Notification to canton, new review

Family growth or divorce

Apply for recalculation

Withholding tax

Retroactive review up to 3 years

Regularly low wage

Annual review possible

Income changes you must actively communicate to the canton. A retroactive adjustment in favour of the insured person rarely happens automatically. For insurers for families, additional discount mechanisms apply that can be combined with the IPV.

Premium subsidy with residence abroad

Anyone who receives a pension from Switzerland and lives in an EU or EFTA country has, under certain conditions, entitlement to a premium subsidy. Responsible is the Common Institution KVG Foundation.

3. How do I inform myself and submit the application?

The procedure differs by canton; the process is similar everywhere. The canton of residence is legally obliged to inform entitled persons. In practice this proceeds differently:

Procedure in the canton

What you have to do

Canton informs actively

Nothing, automatic credit

Application required

Apply yourself annually

Mixed form

First-time application, then automatic

Apply in four steps

  1. Check requirements and deadlines at the responsible office of your canton of residence. Many cantons offer an online check of the entitlement.
  2. Submit the application within the cantonal deadline. The processing time can amount to several months.
  3. Written notification upon approval. The amount of the premium subsidy is transferred directly to the insurer.
  4. Subsidy appears on the premium invoice as a reduction or as a credit for overpaid premiums.

Important: If the cantonal deadline (in some cantons already in the previous year) is exceeded, the entitlement for the whole respective year lapses. The deadlines are published on the websites of the cantonal offices.

Münzen sparen für medizinische Ausgaben mit Stethoskop
More about saving on the insurer
Save on health insurance premiums: 10 ways at a glance

Besides the premium subsidy, there are further savings options. Deductible choice, model switch and insurer switch in direct comparison.

4. Where should I register in my canton?

Per canton of residence, there is a responsible office. This can, depending on the canton, be the social insurance institution (SVA), the compensation fund or the cantonal social welfare office.

Contact points for premium reductions
The responsible office per canton of residence for the individual premium reduction (IPR). Hover over a canton for the short version, click for full contact details.
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System by canton

Automatic: no application neededMixed: partly automatic, partly on applicationApplication required
As of: June 2026 · Contact pointsCompando.ch

6. Frequently asked questions on premium subsidy

This article was first published on 19/02/2026

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