Daily sickness benefit insurance: further development without a mandate
The Romano motion calls for the introduction of mandatory daily sickness benefit insurance (DSB), obliging employers to insure their employees against loss of earnings due to illness. Discussion of the motion is still ongoing.
The SIA opposes the introduction of a mandate for DSB.
Switzerland has two options for voluntary DSB: one under the Health Insurance Act (KVG; premium volume: CHF 242 million) and one under the Insurance Contract Act (ICA; premium volume: CHF 5.5 billion). Overall, around 85 per cent of the payroll and more than 97 per cent of companies with employees are already covered by the voluntary collective DSB system. Individual company solutions are common for the remaining 15 per cent of the payroll, whereby larger employers in particular decide to extend the obligation to continue paying wages at their own risk beyond the provisions of the Swiss Code of Obligations. The proportion of employees who work for companies that do not offer insurance cover is low at 0.03 to 0.5 per cent.
Illness-related absences are on the rise – and so are premiums
Healthcare costs in Switzerland are generally rising. For many years, there has been an increase in long-term illness-related absences, for example due to mental or musculoskeletal illnesses. The premiums for daily sickness benefit insurance must be commensurate with the risk, i.e. they cannot be excessively high or so low that they jeopardise solvency. In the case of smaller SMEs, several extended absences due to illness generally have a greater impact on insurance premiums than they would in larger companies. Volatility is higher.
A mandate is counterproductive
A mandate would interfere with a functioning market that covers the needs of the vast majority of companies and employees. Such public intervention would weaken these tried-and-tested mechanisms and increase the administrative burden and costs for all concerned. A mandate would likely hit those companies hardest that take occupational health and safety very seriously. These companies, and in particular their employees, would have to expect higher premiums and thus cross-subsidisation in favour of companies that do not take health protection very seriously. This would amount to a severe test of solidarity.
Prevention gets to the root of the problem
Absences and sick leave are a growing problem on the labour market, particularly as a result of mental illness. The key is to tackle this growing problem at its root, rather than simply addressing the symptoms with mandatory insurance. Reducing these illness-related absences is the most effective way to avoid high daily sickness benefit premiums.
Insurers themselves invest a lot of money in health management, including through premium incentives. As the main sponsor of the employer organisation Compasso, the SIA is specifically committed to the reintegration of employees who have left the work process for health reasons.