The Franchise System in Switzerland
In Switzerland, mandatory basic health insurance (KVG) requires you to choose a deductible, known as a Franchise. The franchise is the annual amount you must pay out-of-pocket for medical expenses before your insurance starts covering costs.
You can choose between franchises ranging from CHF 300 (minimum) to CHF 2,500 (maximum).
The Golden Rule of Swiss Franchises
Statistically and mathematically, only the two extreme franchises make sense:
- Franchise CHF 2,500: Best if you expect annual medical expenses under CHF 1,900. You get the maximum premium discount.
- Franchise CHF 300: Best if you expect annual medical expenses over CHF 2,000. You pay higher premiums but get cover immediately.
Any intermediate franchise (e.g. CHF 500, 1000, 1500, 2000) is mathematically inefficient in almost all premium structures.
Action Plan: Make the Right Choice
- Build a Medical Buffer: If you choose the CHF 2,500 franchise, make sure you keep CHF 3,200 (franchise + max 700 co-insurance) in savings to cover unexpected medical events.
- Optimize Your Premium: Use our Swiss Health Insurance Deductible Optimizer to input your exact premiums and see the financial outcomes side-by-side.
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