SP Appenzell Ausserrhoden Proposes Cap on Health Insurance Premiums
The Social Democratic Party (SP) of Appenzell Ausserrhoden has submitted an initiative to cap car insurance premiums. The initiative, submitted to the cantonal chancellery in Herisau on Tuesday, October 7, 2025, aims to ensure no household spends more than 10 percent of its income on car insurance premiums. The initiative seeks to address the recent premium increases, both in the canton at 5 percent and nationwide at 4.4 percent. Currently, the pro-rata premium regulation treats everyone equally, regardless of income, but the initiative aims to change this. It proposes strengthening the individual premium subsidy (IPV) to better support people with lower incomes. To reduce bureaucracy and ensure no one misses out on support, the initiative suggests automatically determining IPV eligibility based on tax returns. The initiative, led by the SP, aims to distribute the premium burden more fairly and strengthen social cohesion. If successful, it will ensure that no household in Appenzell Ausserrhoden spends more than 10 percent of its income on car insurance premiums.
