Compare Health Insurance Options for Expats in Switzerland
When living temporarily or for an unknown time outside your home country, it is often better to go with an international health insurance rather than local private health cover in the new country of residence. In any event, it is advised to check the available options thoroughly and for the long term.
Compulsory Health Insurance
Many countries run a compulsory health insurance scheme or public health system which provides at least basic cover. Domestic insurers offer different types of private medical insurance. For example, to include dental insurance, cover for alternative medicine, or to include coverage for short stays abroad. However, if someone moves abroad, the compulsory or private local health insurance cannot be continued in most cases. In many countries, the eligibility to the local health insurance system is bound to your residence in this particular country. This applies to most countries in Europe, such as for example the UK or Switzerland and is one of the biggest disadvantages for individuals and families that relocate multiple times over the years.
On the other hand, due to existing bilateral agreements between countries, in some cases you may be obliged to remain insured in your previous country of residence. For Swiss people living abroad and receiving a pension or an income from Switzerland, it may be compulsory to remain insured with the Swiss social security and health insurance system even when relocating to another country in Europe. Those obligations and bilateral agreements are very individual and therefore should always be checked with the available offices and authorities of the country you have been registered with so far. Such clarifications can be lengthy and very complicated, so it should be approached early on when you are planning a relocation.
Example Switzerland – Why Not Just Choose Local Swiss Insurance?
Switzerland mandates that all residents, including expats and residents under a flat tax agreement, to purchase a basic health insurance plan. In the German-speaking part of Switzerland, referred to as KVG. In the French-spaking part of Switzerland, referred to as LAMal.
While this ensures minimum medical coverage and compliance with the local legal obligations, it comes with certain limitations:
- Restricted to Swiss territory
- Limited choice of doctors and hospitals
- Coverage abroad only for emergencies
If you’re a frequent traveler, global business executive, or high-net-worth individual (HNWI), these restrictions may not align with your lifestyle. A local supplementary private Swiss health insurance (referred to as VVG) offers extended services but still binds you to the Swiss system. Authorization to access medical care abroad is difficult, network restricted, and often requires lengthy bureaucratic work to receive permission or reimbursement. And most importantly, in case you leave Switzerland at some point in time to live abroad again, you will lose your local mandator and private medical cover from the Swiss insurer.
When comparing health insurance plans in Switzerland, always consider these critical factors:
| Factor | Swiss Basic (LAMal) | Supplementary (VVG) | International Private Insurance |
|---|---|---|---|
| Geographic Coverage | Switzerland only | Mostly Switzerland | Global |
| Doctor/Hospital Choice | Limited | Extended | Full Freedom |
| Portability | No | No | Yes |
| Pre-Existing Conditions | Fully covered | Often Excluded | Frequently Covered |
| Premium Stability | Regulated | Variable | Based on provider |
| Lifetime Coverage | Yes | Sometimes | Often Guaranteed |
Benefits of International Private Health Insurance
One of the main reasons that make international insurance policies attractive is that they provide the benefit of coverage independent of place of residence or duration of stay in any particular country. Naturally, it is often somewhat more expensive than a purely local policy, but a few international health plans also offer a restricted-area option for people who prefer to reduce their premiums in this way. In any event, a private, international health policy gives you freedom to choose doctors and hospitals without being restricted by your medical insurance. Thus you can choose to be treated in Belgium, the Netherlands, or indeed in any other country, even in the USA.
There are many health plans to choose from whose benefits and prices vary widely. Policies differ greatly not only in their coverage of optional extras, but also of major eventualities such as transplants and chronic illnesses. When comparing premiums, it is also very important to compare the same geographical area of coverage. All too often, key insurance conditions are hidden in the small print of the policies. It is therefore relatively difficult to get a good overview and understanding of all the features, benefits, exclusions, options, and premiums of the various plans and policies.
In most countries, an international private medical insurance does not replace the local mandatory health insurance. But there are some exceptions, where an international policy will also cover the obligation you may have in your country of residence. Such products will always be specifically designed for the respective country, to ensure compliance with the local law. Such exceptions exist for example in Switzerland or the UAE.
Common Pitfalls to Avoid
People often look at what they currently pay but neglect to consider what will happen when they get older, and what premiums they may have to pay then. Your savings from not taking out private or international private medical insurance may quickly erode when you have a medical incident and treatment costs have to be paid out of pocket.
Particularly if you need long-term coverage, you should not only look at the product but also at the insurance company itself. There are many attractively looking policies on the market, some of them at apparently very affordable prices. However, it is advisable to check out the company’s claims handling procedure, and it also makes sense to ask about the track record of an insurance plan – or even the insurance company – to evaluate if it will still be a viable cover for you in 10 or 20 years time.
Independent Insurance Brokers Can Help
It may be advisable to use the help of an independent insurance consultant, who is able to give advice as to what type of policy will best suit your personal needs and what company will be able to provide this type of policy. Furthermore, you can at anytime seek advice on which specialist doctor, hospital or clinic may be best suited for the type of treatment you need.
Overall, the long-term benefits of an international private medical insurance almost always outweigh the costs for expats and global citizens in the long run. These benefits include:
- Complete, global coverage regardless of your place of residence
- Freedom to choose any specialists or hospitals worldwide
- Guaranteed lifetime renewal of the policy, regardless of age and state of health
- Full coverage regardless of your occupation, leisure interests, and sports activities
In international private health insurance, too, you have to read the small print and in the end you get what you pay for. With international health insurance, most people choose more comprehensive and established plans with good coverage that is appropriate to their needs, as the price they pay for this insurance buys them true peace of mind for themselves and their family.
Frequently Asked Questions (FAQ)
Q1: What is LAMal or KVG in Switzerland?
A: LAMal (German: KVG) stands for Switzerland’s compulsory basic health insurance law. It provides essential medical services to all residents but is limited to treatment within Switzerland and often within specific network providers.
Q2: What is VVG or supplementary insurance in Switzerland?
A: VVG refers to voluntary supplementary insurance, offering expanded services such as private rooms, international coverage within Europe, and alternative treatments. It is not mandatory and varies significantly between providers.
Q3: Is international health insurance better than Swiss health insurance?
A: It depends on your lifestyle. If you travel frequently, have multiple residences, if you are not sure on whether you will stay in Switzerland forever, or require access to hospitals globally, international insurance offers more flexibility and continuity.
Q4: Can I combine LAMal and international private health insurance?
A: Yes, many expats maintain basic LAMal coverage for local compliance while using international insurance for global protection and broader benefits. There is only one product for individuals that combines LAMal and international cover from a global insurance provider, while there are 2-3 such plans that exist for a corporate policy that a firm takes out on behalf of their expat population
Q5: How do I compare international health plans?
A: Look beyond price—review geographic scope, renewal guarantees, chronic illness coverage, portability, and claims reputation. Ask a professional and independent advisor with day-to-day experience with the different insurance providers.
