Sickness funds: cap on managers' salaries set by the CF (cross-border guide)
The Federal Council wants to put a limit on the salaries of sickness fund managers based on the remuneration of federal councillors.
Context
In a nutshell
- Limit on the salaries of sickness fund managers
- Future salaries oriented to federal councillors
- Enhanced transparency with data publication
- Parliamentary initiative of Senator Baptiste Hurni
Key facts
- What: Maximum limit for managers' remuneration
- Who: Federal Council and LAMal insurers
- Reference: Basic salary of about CHF 480,000
- Origin: Parliamentary initiative of Senator Baptiste Hurni
- Scope: Activities in the field of compulsory insurance
- Transparency: Obligation to publish salary and degree of employment
The Federal Council considers it necessary to put a cap on the salaries of sickness fund managers, specifically for directorates and boards of directors, with regard to the activities carried out in the field of compulsory insurance. This stance also comes in the light of popular discontent over the rising premiums and follows a draft drawn up by the National Council's Social Security Commission. According to the Swiss government, the future salaries of these executives should be based on those received by the federal councillors, who expect a basic salary of about CHF 480,000.
Parliamentary origin of the project
The current bill has its roots in a parliamentary initiative presented by Senator Baptiste Hurni, a member of the Socialist Party of Neuchâtel. The original text of the project provides
Operational details
Transparency and publication of data
In order to verify strict compliance with this new regulatory framework, the federal executive plans to significantly strengthen the provisions on pay transparency. In the intentions of the government, insurers operating in the LAMal sector should be required to openly publish the exact remuneration and degree of employment of all members of their management and administrative bodies. This publication shall also clearly state the corresponding name of each executive, as specified in a government memo published today. The executive strongly supports this extension of the publication obligations, considering that for compulsory social insurance maximum transparency is a fundamental and indispensable requirement.
Government Assessment and Administrative Costs
Despite strong support for transparency, the Federal Council wanted to warn against excessive expectations regarding the practical effects of this reform. From the government's point of view, the project will hardly lead to an effective reduction in the administrative costs borne by insurers and, consequently, will not lead to an immediate decrease in the premiums paid by citizens. However, this design represents a concrete response to take into account the economic burden on the population due to the increasing premiums and the
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Key points
Criticality of the mechanism and proposed changes
The only critical aspect noted by the government concerns the initial mechanism for fixing maximum salaries presented in the bill. According to the executive, the implementation and constant control of a system based on a multiplicity of different parameters would entail a considerable administrative burden for the competent offices. To overcome this bureaucratic problem, the Federal Council explicitly requests that the salaries of the members of the directorates and boards of directors be limited in a simple and direct way to the amount of the remuneration of the federal councillors, incorporating in this sense the proposal made through a specific motion. In this way, any compensation for the increase would already be fully considered within the established basic figure.
Next steps and practical impacts
The introduction of a salary cap and the obligation of payroll transparency represent a significant change in the governance of sickness funds in Switzerland. For citizens and policyholders who wish to monitor the evolution of health costs and compare the rates applied by the different operators on the Swiss market, it is possible to consult the analysis tools available online. Check the options available to you for managing health expenses now and find out how they affect your family budget through the comparatore LAMal.
Source: swissinfo.ch
Frequently Asked Questions
- What is the proposed salary cap for sickness fund managers?
- The Federal Council proposes to direct the future salaries of the managers of the sickness funds to the salaries of the federal councillors, which provide for a basic salary of about CHF 480,000, as indicated in the project based on an initiative by Senator Baptiste Hurni.
- What information should LAMal insurers publish?
- Insurers will be required to publish the exact remuneration, the degree of employment and the corresponding name of all members of their management and administrative bodies, in order to ensure maximum transparency.
- Will this measure lead to a reduction in premiums for policyholders?
- The Federal Council warns of excessive expectations, pointing out that the project will hardly lead to a reduction in the administrative costs of insurers and the premiums paid by the population.