What does “Franchise” and “Deductible” mean in health insurance?
The insured persons has to take parts of the costs of the medical treatment on his own. This participation exists of an annual fixed amount (Franchise) and 10% of the costs exceeding this franchise (Deductible).
The standard franchise amounts to CHF 300.- per calendar year and the annual maximum of the deductible is CHF 700.- for adults. Therefore a maximum cost participation of CHF 1’000. - per calendar year arises for an insured person with an annual franchise of CHF 300. -.
The health insurance companies offer different franchise heights. For adults they vary typically between CHF 500.- to CHF 2’500.-, and for children between CHF 100.- to CHF 600.-.
The choice of a higher franchise leads to a significant reduction of the annual insurance premium. Nevertheless, this comes with the effect that in case of illness also higher costs have to be carried by the insured person.