Am I Eligible for Premium Subsidies?

What is Prämienverbilligung?

Prämienverbilligung is a cantonal subsidy that reduces your monthly KVG premium. It is funded by the cantons and the federal government. The subsidy is paid directly to your health insurer, so your monthly bill is reduced automatically — you never see the money pass through your bank account.

Every canton runs its own program with different income thresholds, amounts, and application processes. There is no single national standard.

Who is eligible?

Generally, you may qualify if your KVG premiums exceed approximately 8–10% of your household income. However, the exact threshold varies significantly by canton. Typical eligible groups include:

• Families with children — often eligible even at moderate incomes
• Single-income households
• Students and apprentices
• Retirees on modest pensions
• Recipients of social assistance (Sozialhilfe) — usually auto-enrolled
• Workers in lower-wage sectors

You must be a registered resident of the canton and have valid KVG insurance. Temporary residents and asylum seekers have separate rules.

How much is the subsidy?

The amount varies by canton, income level, family size, and age. It can range from a small monthly reduction (CHF 50–100) to full coverage of the KVG premium for the lowest incomes. Children and young adults (up to age 25 in training) often receive higher subsidies relative to their premium.

How to apply

Step 1: Find your canton's program

Contact your canton's social insurance office (Ausgleichskasse / Caisse de compensation / Cassa di compensazione). Most cantons also offer online applications through their website.

Step 2: Gather documents

You typically need:

• Your most recent tax return (Steuererklärung / déclaration d'impôts)
• Proof of residence (Wohnsitzbestätigung)
• Residence permit (for non-Swiss nationals)
• Proof of income (salary statements, pension statements)
• Your KVG insurance policy details

Step 3: Submit your application

Applications are usually for the current calendar year. Many cantons accept applications throughout the year, and the subsidy can be granted retroactively to January 1st. Some cantons have a deadline (often March 31st) — check your canton's specific rules.

Automatic enrollment in some cantons

Several cantons (including Bern, Zürich, and others) automatically identify eligible residents based on tax data and either enroll them directly or send them an application form. If you receive such a letter, fill it out and return it — it is not a scam, it is a genuine subsidy offer.

Even in cantons with auto-enrollment, you may need to actively apply if your circumstances change mid-year (job loss, divorce, new child).

What if my income changes?

If your income drops significantly during the year (job loss, reduced hours, divorce), you can apply for a reassessment. The subsidy can be adjusted based on your current income rather than the previous year's tax return.

Conversely, if your income increases substantially, you should inform the Ausgleichskasse. If you receive a subsidy you are no longer entitled to, you may be required to repay it.

Prämienverbilligung and your franchise

Receiving Prämienverbilligung does not affect your franchise choice. You can still choose any franchise level (CHF 300–2,500). However, choosing a higher franchise to reduce your premium further can be risky if you expect medical expenses — the subsidy only covers the premium, not the franchise or Selbstbehalt.