Topics:
- International Health Insurance (IPMI) Solution - What do dental insurance plans offer?
- Merger of Foyer Global Health and Globality Health is approved
- Premium round 2024 - Health insurance
International Health Insurance (IPMI) Solution - What do dental insurance plans offer?
In Switzerland, dental insurance is often only an issue in connection with orthodontic treatment for children. These benefits are usually covered by Swiss health insurers through supplementary insurance products, or packages, which may also include other benefits such as coverage abroad, repatriation, etc. (supplementary outpatient insurance) depending on the health insurer. Premiums for such supplementary insurance covers are surprisingly low, often even below CHF 10 per month for children. This is remarkable considering that almost every second child needs orthodontic treatment and the costs are substantial.
Classic dental insurance (dental care insurance) has a rather modest existence in Switzerland - by tradition. The benefits in relation to the costs are often not clearly evident, which is why many dental treatments in Switzerland are usually paid for out of pocket. The Health Insurance Act (KVG) only pays in rare cases, mainly in the case of serious, unavoidable diseases of the masticatory system or serious general illnesses.
In the case of dental damage caused by an accident, the UVG, which covers dental damage as a result of an accident, applies to employed persons. Persons who are not gainfully employed are covered for the accident by the KVG.
In the international sector, i.e. insurance solutions for posted employees and expatriates abroad (IPMI), the situation is quite different. About 60% of all companies in Switzerland insure dental benefits. A classic dental insurance in the international area can cover approximately (depending on the provider) the following benefits:
|
Ø Benefits: |
Benefit per insurance year/rough range/depending on plan variant/provider |
|
Maximum coverage |
CHF 2‘000 bis 5‘000 |
|
Routine checks |
100% covered |
|
Tooth extraction, root canal treatment |
80% covered |
|
Fillings, crowns etc. |
50% covered |
|
Orthodontics for children |
CHF 1‘000 bis 1‘500 |
The premium costs are usually around CHF 1,000 per year, depending on various parameters. Whether a company wants to offer dental insurance cover or not depends on various factors.
- Is it an industry standard (benchmark)?
- Does a company deliberately want to offer a very attractive insurance solution?
- What are the nationalities/countries of origin of the expats? How international is the expat insurance portfolio?
- What is the budget available?
Re point 3: In some countries of origin of expats (e.g. France or Germany) dental treatment is covered by the state social security systems. Supplementary insurance to these state benefits is also common. Accordingly, expat dental insurance is often considered almost indispensable/self-evident in the host country.
Return to Switzerland
On return to Switzerland, reintegration into the Swiss healthcare system takes place. For adults as well as for children, it can be difficult or impossible to take out dental care insurance or supplementary insurance for orthodontic treatment if treatment is already ongoing or foreseeable. Nevertheless, there are solutions such as suspension and continuation, which we are happy to explain in more detail.
Merger of Foyer Global Health and Globality Health is approved
The Luxembourg-based Foyer Insurance Group is taking over Globality Health from the German ERGO Group (Munich Re). This has been known for some time, but still had to be approved by the authorities, which is now the case. Both groups are active in the IPMI business (international health insurance for expatriates - individual and group insurance). Globality Health operates in Switzerland under the name SWICA Globality Health (SWICA is the licensor for group insurance for Swiss corporate clients).
What is important for clients is that this partnership with SWICA will be continued in the area of licensing, KVG coordination but also in the area of continuation when returning to Switzerland (right to transfer to supplementary insurance). Thus, nothing will change for the customers.
Premium round 2024 - Health insurance
As every year, the premium adjustment in the health insurance sector concerns both private individuals and companies that insure their employees working abroad via IPMI contracts. The question of how high the premium adjustments will be on 1 January of the coming year is in the air.
It seems to be set in stone that costs/premiums will rise. There are good reasons for this, because medical inflation is not just a buzzword but corresponds to reality. The costs/prices for medical products and services are continuously rising, also due to the high "general" inflation rate. The range of medical services is expanding. Better, often more expensive medicines and treatment methods are being used. The longevity (ageing) of the population is increasing in many regions and, in general, the use of medical services also seems to be increasing - probably a "post-Corona" effect.
What lies ahead?
KVG Switzerland
In the first 6 months, costs in Switzerland rose by an average of 8% (source santésuisse) and it is therefore to be expected that there will again be marked premium adjustments. As always, these will vary per provider and region. The health insurers' tariffs will be approved and communicated in September. We are curious!
IPMI contracts (International Private Medical Insurance)
7 - 12% premium adjustment can be expected. Depending on the provider and claims experience, this value can also be higher or lower. The statistics "Global Medical Trend" by Aon and Willis Towers Watson show estimates for the year 2023 of 9.2% and 10% (gross cost growth) globally. Depending on the region (e.g. Middle East), these values can also be significantly higher.