Topics:
- What does Brexit have to do with the KVG?
- International Health Insurance - Impact of Covid-19 on the pricing of IPMI insurers
- Reduce IPMI costs! IPMI Check, a new service from expatpartners
- New IPMI pool solution from expatpartners
- Returning expats to Switzerland - expatpartners helps with health insurance
What does Brexit have to do with the KVG?
Prima vista "little", but on closer inspection "a lot"! Brexit redefines the relationship with the UK in terms of social security and in terms of the compulsory health insurance KVG. We distinguish between two constellations.
Constellation 1: Persons who were already in a "cross-border" situation between Switzerland and the UK before 31.12.2020 retain their rights (and obligations), i.e. the acquired rights are protected and will be continued (grandfathering).
A1 and S1 remain in force. This means, for example, that a posted (seconded) employee or a pensioner from Switzerland in the UK can continue to pay the EU/EFTA KVG premiums in Switzerland and receive benefits in the UK according to the NHS, which are then paid by the Swiss health insurer via the benefit assistance.
Constellation 2: For persons who enter into a cross-border situation with the UK as of 1 January 2021, however, the situation is different. There are no acquired rights. The KVG system according to the social security agreement (no longer according to the rules of the EU/EFTA Agreement on the Free Movement of Persons) will now apply to posted persons. NHS will no longer be involved. Benefits received in the UK must be billed directly via the KVG insurer in Switzerland and the benefits according to the KVG apply, e.g. also the deductible (franchise), retention, etc. New Swiss pensioners (AHV/IV pensioners) in the UK are also no longer allowed to insure themselves via the KVG.
Premiums
A different KVG premium is now applied for posted employees according to constellation 2. It is no longer the EU-KVG premium for the UK, but the expatriate premium. This is good news, however, because the average EU-UK KVG premium is about CHF 400/month (deductible 300), while the expatriate premium is only about CHF 120/month (deductible 300). This means that the combined solutions (KVG and international health insurance/IPMI) are also significantly cheaper.
Conclusion: From 1.1.2021, two different KVG systems will be used in parallel. This makes the already complex processes even more challenging. We are of course happy to help!
International Health Insurance - Impact of Covid-19 on the pricing of IPMI insurers
The Covid-19 pandemic will lead to rising health care costs in the long term. Is this why the premiums for international health insurance are also increasing at an above-average rate?
Not necessarily.
In the short term, the number of claims for IPMI group plans even decreased. Many treatments (including operations) were postponed either because hospital capacities were limited or because people did not go to the doctor for fear of infection.
In addition, it should of course be noted that the people insured in IPMI group plans (expats and their families) have a significantly lower average age compared to the population as a whole. Accordingly, severe courses of disease are less frequent, so that expatriate health insurance plans are directly less affected by Covid-19.
We asked the leading IPMI providers for their assessment of how the pandemic will affect premium development.
The insurers acknowledge/confirm the effect of the short-term cost reduction (due to the postponed treatments). At the same time, they emphasise that these treatments will be made up for so that the claims figures settle at a normal level throughout the year. It must also be added here that, depending on the size of the contract, the insurers take into account the claims figures from 2, often 3 years back when setting the tariff.
In summary, it can be said that Covid-19 has led to a reduction in costs for IPMI insurers in the short term, but will not have a noticeable impact on claims figures in the medium term. In other words, Covid-19 should not have a major impact on the development of premium costs. This is in contrast to "global medical inflation", which will also cause premiums to rise in the future.
You are under pressure from all sides. Management demands cost savings from you. The insured want the best possible health insurance solution, especially now. Squaring the circle. What to do?
We offer to new clients a standardised evaluation of their IPMI contract at fixed cost. We give you a benchmark for comparison and make concrete suggestions on how to optimise your IPMI plan (benefits, coverage gaps, premiums). This without any obligations for you. You decide whether, how and with whom you want to implement our proposals.
For our existing group clients, the IPMI contract is reviewed as part of our broker mandate. This is always done on the occasion of the contract renewal and usually does not result in any extra costs.
Too small for a group plan? New IPMI pool solution from expatpartners
Unfortunately, current IPMI plans can fall below the minimum requirements - i.e. there are no longer enough insureds in the plan and the insurer no longer renews the group plan at renewal. We have an exclusive pool solution. From one insured employee (posted employee or expatriate, with or without KVG), you can join the pool, which offers all the advantages of a "real" group plan (no health questions, no reservation, no waiting period, freedom of continuation on return to Switzerland, transfer to individual insurance, etc.).
Returning expats to Switzerland - expatpartners helps with health insurance
Upon return to Switzerland, the international health insurance (as a rule) cannot be continued. The insured persons are again fully subject to the Swiss health insurance system.
Those previously posted abroad from Switzerland (and their family members) already had KVG cover during the posting. However, when returning to Switzerland (registration), various questions arise: Can the health insurance company (KVG provider) be changed on the date of return? Or only at the end of the year according to the legal notice periods? Which KVG tariff will be applied? Can the KVG model (e.g. from the standard model to a tele-health model) be changed by registering in Switzerland? Can the deductible rate be changed?
Even for expats who did not have KVG coverage during their assignment, various questions arise upon their return: Which health insurance company should I choose for KVG coverage? Which health insurance model?
There is also the important question of supplementary insurance to be clarified (relevant for posted employees and expatriates). Is there a continuation insurance (transfer from the international plan to a CH supplementary insurance without risk assessment)? What are the conditions? How and where can I get a suitable offer? The continuation rules of the various IPMI providers differ greatly in some cases.
We are happy to support our group clients and their employees in these matters.