Switzerland: Health care needs more digitalization to save money

Swiss health insurance  premiums will double by 2030. According to a study by EY (Ernst & Young), insurers will have to help reduce the costs of health care by focusing on innovation and digitalization.

The consulting firm estimates that health costs are expected to rise by 60% by 2030, for a total of 116 billion francs. If in 2014 in Switzerland, the average expenditure was equal to 6% of their income for health insurance premiums, the rate is set to rise to 11% in 2030, as stated today by EY analysts in a conference call.

This trend is expected to significantly reduce the purchasing power of private citizens. The majority of the population will not then be able to bear the premiums for compulsory health insurance. In this way, a small part will be able to still afford a supplementary insurance.

Already, private citizens support the health care system for two-thirds. Health insurers will have to help reduce costs; the same Federal Council has calculated an efficiency potential of 20%.

For consulting firms, system improvement will happen with innovations related to digitization. Health insurers have in fact a large volume of data which can help to improve the prevention, early diagnosis and even the therapies.

The EY research is based not only on the survey conducted between September and October of 2016, on the annual reports data of health insurers and the FOPH official statistics, FSIO and FINMA.