Premium caps: which cantons limit the premium burden

What a premium cap is

A premium cap limits the share of its income that a household has to spend on basic health insurance premiums. Anything above that is covered by the canton through the premium subsidy. Because the premium in Switzerland is a per-person premium, i.e. independent of income, it hits households with little money particularly hard.

At federal level, a fixed cap has failed. The Premium Relief Initiative wanted to limit the premium burden to 10 % of disposable income; voters and cantons rejected it on 09.06.2024 with 55.47 % voting no. Since 01.01.2026, the indirect counter-proposal has applied instead. It requires two things of every canton: a minimum budget for premium subsidies and its own social target. The social target is nothing other than a premium cap chosen by the canton itself: the maximum share of disposable income that the premium may account for (Art. 65 para. 1ter of the Federal Health Insurance Act, KVG).

The law does not prescribe a specific percentage. That is why the figures vary widely, and many cantons have not yet set one. Under the transitional provision, they have four years to do so, i.e. until the end of 2029; after that, the Federal Council decides.

Which cantons name a cap

The Swiss Conference of Cantonal Health Directors (GDK) has a separate column on the social target in its overview for 2026. The table shows the cantons that name a percentage, plus the decision of the Glarus Landsgemeinde of 03.05.2026.

Canton	Limit	What exactly is capped
Zug	8.0 %	Reference premiums are subsidised to the extent that they exceed 8.0 % of relevant income; no entitlement above CHF 89,900 in relevant income
Vaud	10 %	Premiums up to a reference premium, to the extent that they exceed 10 % of relevant income (RDU) (Art. 17a LVLAMal)
Graubünden	at most 10 %	Own share at most 10 % of eligible income (Art. 8 para. 2 KPVG)
Nidwalden	at most 11 %	Percentage model with an own share of 7 to 11 %; the premium share may account for at most 11 % of income
Glarus	15 %	Social target in the cantonal KVG implementing act, adopted unchanged by the Landsgemeinde on 03.05.2026
Lucerne	14.5 %	in consultation (as of GDK overview 2026)
Schwyz	no social target	Own share currently 11 % of eligible income

According to the GDK overview 2026, the cantons that had not yet set their social target include Aargau, Bern, Jura, Obwalden, St. Gallen, Solothurn, Ticino and Thurgau. The overview contains no information for the other cantons. The GDK publishes its overview without guarantee; cantonal law is what is binding.

Why one cap is not the same as another

A percentage on its own says little. Three factors decide what a cap means for you:

1. Which premium? Almost all cantons calculate not with your actual premium but with a reference premium. In Zug, according to the GDK, the reference premiums for 2026 are CHF 4,984.80 per year for adults, CHF 3,472.80 for young adults and CHF 1,224 for children. If you pay more, you bear the difference yourself, even if that takes you above the cap.
2. Which income? What counts is the relevant income under cantonal law, not your gross salary. Zug calculates with net income, adds voluntary purchases into the pension fund, pillar 3a and 10 % of net assets, and deducts CHF 8,500 per child.
3. Is there an upper limit? Many cantons combine the percentage with an income limit. In Zug, there is only a reduced subsidy from CHF 70,000 in relevant income, and none above CHF 89,900.

That is why a canton with 8 % can end up providing less relief than one with 10 %, if its reference premium is low or its definition of income is broad.

The Confederation also measures the premium burden, but differently: for the cantons’ minimum budget, the FOPH calculates the share that premiums, after deducting the subsidy, account for in the taxable income of the 40 % of insured persons with the lowest incomes. For the 2026 calculation, this figure was 16.85 % on Swiss average, 10.75 % in Zug, 14.93 % in Vaud, 21.79 % in Graubünden and 22.6 % in Neuchâtel. It cannot be compared directly with the cantonal social targets, because it uses a different income and the premiums actually paid.

Sample calculation: 8 % in Zug, 17.5 % in Aargau

Both cantons use a percentage model: the part of the reference premium that exceeds a percentage of relevant income is subsidised. Zug uses 8.0 %, Aargau 17.5 %. The reference premium for adults in 2026 is CHF 4,984.80 in Zug and CHF 5,830 in Aargau (GDK overview 2026).

Example with fictitious people. Mia, 45, lives alone. We set her relevant income at CHF 30,000 in both cantons (assumption).

You can check your entitlement in your canton on the page Premium subsidies, for Zug under Premium subsidies Zug and for Vaud under Premium subsidies Vaud.

Special cases

• Children and young adults. Regardless of the cap, the federal requirement applies: for low and middle incomes, children’s premiums are reduced by at least 80 % and the premiums of young adults in education by at least 50 % (Art. 65 para. 1bis KVG). In Zug, according to the GDK, this applies up to a relevant income of CHF 70,000.
• Vaud: two levels. Vaud has an ordinary subsidy and an additional contribution if, after the ordinary subsidy, the premiums still account for more than 10 % of relevant income. The reference premium depends on the cantonal average premium, income and the premium region.
• Moving. If you move to a canton with a lower cap, its system only applies from the following calendar year; for the current year, the canton in which you lived on 1 January remains responsible (Art. 5 VPVK).
• Hospital costs. The premium cap is not to be confused with the cantonal share that your canton of residence pays towards inpatient hospital treatment. It also affects premiums, but in the same way for all insured persons and not according to income.

Common mistakes

• Applying the cap to your own premium. The cantons calculate with reference premiums. If you choose an expensive insurer, you pay the amount above the cap yourself. Compare the offers in your municipality in the premium calculator.
• Using your gross salary. What counts is the income calculated by the canton, often including a share of assets and add-backs.
• Assuming the cap applies automatically. In many cantons you have to apply for the subsidy, otherwise you get nothing. The article Applying for a premium subsidy explains how.
• Taking figures from the 2024 vote. The initiative’s 10 % limit does not apply; only your canton’s law counts.

The article Premium subsidies newly regulated explains what else the counter-proposal changes, such as the cantons’ minimum budget. You will find key figures for all insurers under Health insurers and more ways to save in the topic section Saving money.