Premium Subsidies (Prämienverbilligung)

What are premium subsidies?

Under Swiss law (Art. 65 KVG), cantons must ensure that health insurance premiums do not place an unreasonable burden on low- and middle-income households. To achieve this, every canton operates a premium subsidy programme (Prämienverbilligung/réduction de primes/riduzione dei premi).

The subsidy is paid directly to your health insurer, reducing the amount you owe each month. Depending on your income and canton, the subsidy can range from a modest reduction of CHF 50/month to full coverage of your entire premium.

• Funding: Shared between the federal government and cantons
• Amount: Varies widely by canton and income level — from CHF 50 to CHF 500+ per month
• Payment: Goes directly to your insurer, reducing your monthly bill

Who qualifies?

Eligibility varies significantly by canton. Each canton sets its own income thresholds and calculation methods. However, as a general guide:

• Low-income residents: If your taxable income is below the cantonal median, you likely qualify for at least a partial subsidy
• Families with children: Higher income thresholds apply for families. Children and young adults (up to age 18 or 25 in some cantons) often qualify automatically
• Young adults in training: Students and apprentices with low income frequently receive substantial subsidies
• Recipients of social assistance: Premiums are typically covered in full
• Newly arrived residents: You can apply even in your first year, based on estimated income

How to apply

The application process differs by canton. There are two main systems:

Automatic cantons

In some cantons (e.g., Bern, Lucerne, Solothurn), the subsidy is granted automatically based on your tax return. You do not need to apply — if you qualify, you receive a notification and the subsidy is paid directly to your insurer. However, if you believe you qualify and have not received notification, contact your cantonal office.

Application-required cantons

In other cantons (e.g., Zurich, Aargau, St. Gallen), you must actively apply. The application is submitted to your cantonal compensation office (Ausgleichskasse) or social insurance office (SVA/Sozialversicherungsanstalt).

Typical application requirements:

• Completed application form (available online or at the cantonal office)
• Most recent tax assessment (Steuerveranlagung/taxation)
• Proof of current health insurance (policy number, insurer name)
• Proof of residence in the canton

How much can you save?

The subsidy amount depends on your canton, income, family size, and age. Here are approximate ranges for 2025/2026:

• Single person, low income: CHF 100–400/month (up to 100% of premium in extreme cases)
• Family with 2 children, moderate income: CHF 200–600/month for the household
• Children (under 18): In many cantons, children from low-income families receive a full premium subsidy (CHF 100–140/month per child)
• Young adults (19–25): Often receive subsidies at higher income thresholds than adults

The subsidy is recalculated annually based on your most recent tax assessment. If your income changes significantly mid-year (job loss, salary reduction), contact your cantonal office to request a reassessment.

This is NOT welfare — it is a right

Many residents — especially newcomers — hesitate to apply because they associate premium subsidies with social assistance (Sozialhilfe). This is a misconception:

• Premium subsidies are separate from social assistance and do not appear on your record as welfare
• Receiving a subsidy does not affect your residence permit status or naturalisation process
• The Federal Supreme Court has ruled that premium subsidies are a right, not a benefit — cantons cannot stigmatise recipients
• Approximately one in four Swiss residents receives some form of premium subsidy — it is mainstream, not exceptional

Cantonal contact offices

Every canton has a designated office handling premium subsidies. The most common contact points are:

• Ausgleichskasse (compensation office) — handles premium subsidies in many German-speaking cantons
• SVA / Sozialversicherungsanstalt (social insurance office) — the contact in cantons like Zurich and Aargau
• Service des assurances sociales — in French-speaking cantons

Search online for "[your canton name] Prämienverbilligung" or "[your canton name] réduction de primes" to find the correct office and application forms. Most cantonal websites have the forms available for download in multiple languages.

Combining subsidies with other savings

Premium subsidies work on top of other cost-reduction strategies:

• Choose a cheaper insurer: Your subsidy amount stays the same regardless of which insurer you choose. Switching to a cheaper insurer means the subsidy covers a larger share of your premium — potentially bringing your out-of-pocket cost to zero
• Choose an alternative model: Telmed or HMO models reduce premiums by 10–25%. The subsidy then covers more of the remaining amount
• Choose a high franchise: Lowers your premium, making the subsidy stretch further. Just make sure you can afford the franchise if you need care

For detailed cost optimisation, see our guides on insurance models and franchise options.