Breakdown of Swiss health care expenditure, 2008, main categories in Swiss francs: top to bottom, administration, prevention, sales of healthcare products, auxiliary services, ambulatory care, hospital care (Source: Swiss Federal Statistics Office)
Neuchatel, Switzerland (GenevaLunch) - Switzerland spent CHF58.5 billion on health care in 2008, or CHF632 per person, figures published 9 November by the federal government show. Healthcare accounted for 10.7 percent of gross domestic product (GDP), a share that remains virtually unchanged, although spending itself rose by 5.9 percent and was above the 3.5 percent average increase for the previous five years. GDP also rose in 2008, by 4.4 percent.
The health spending increase puts Switzerland in third place internationally for healthcare costs as a share of GDP, after the United States, 16 percent and France, 11.2 percent. Germany and Austria have fourth and fifth places with 10.5 percent each.
The new figures were released 20 days before the deadline for Swiss residents to change their insurance company for 2011. An important change from one of the main insurers, Intras, for 2011 will affect policy holders’ pharmaceutical payments: in the past the pharmacies billed the insurance company directly, but Intras in future will insist that patients pay their bills, then ask for reimbursement. The move has prompted some discussion about the legality of the change and some pharmacies have written to regular customers to suggest they change insurance companies. A pharmacist in the Morges region told GenevaLunch, however, that Intras may be the largest but is not the first insurance company to make the change, and that there appears to be a trend to move in this direction, with large insurance groups having one of their insurance companies at a time make the change.
Comparis provides comparative health insurance pricing in the run-up to the insurance change deadline.
The Swiss spent CHF37.5m in 2008 on four main categories that account for 61 percent of overall costs: Read more…
Brady Dougan, Credit Suisse, will face investors' questions on compensation at the AGM 30 April 2010 in Zurich
Update 15:45 Bern, Switzerland (GenevaLunch) – The Swiss federal government is taking three steps to curb what it calls “excessive salaries in banks and insurance companies.” It noted in a press release Wednesday afternoon 28 April that the measures were necessary because “inappropriate compensation systems with false incentives were jointly responsible for excessive risk taking, which led to the financial market crisis.” Swiss banks and insurance companies are key to the health of the Swiss economy, Bern noted, and excess pay packages are “objectionable particularly in the case of loss-making companies.”
The announcement comes just two days ahead of Credit Suisse’s annual meeting, where pay packages are on the agenda.
The three measures are:
- salary systems of financial institutions getting government assistance should be regulated for the duration of the support
- variable salary components above CHF2 million that depend on company profits should no longer be treated as personnel expenses for tax purposes, but as profit distribution (taxed as corporate profits)
- employee stock options should be taxed when they are exercised rather than when they are granted.
The last item will go directly to parliamentary committees for consideration in May 2010, but the other two require legislation to be drafted, which the Federal Department of Finance has been asked to do by autumn 2010.
Bern, Switzerland (GenevaLunch) – The Swiss Financial Market Supervisory Authority (Finma) says it wants banks’ remuneration policies to be more closely aligned with the long-term health of the institution. They should not be an incentive to take risks which may undermine the company. But it will not cap bonuses. Finma announced its new circular Wednesday 11 November. The new regulations take effect 1 January 2010.
Finma says that variable remuneration, or bonuses, should reflect an employee’s stake in the success of the company, in the company’s overall performance, and should reflect the risks the company takes. Finma encourages senior employees’ bonuses to be deferred in order to ensure that the company’s health is aligned with their remuneration.
