Private Insurance In Sweden: Public System's Complement?

Sweden has a universal public healthcare system, considered one of the best in the world. The central government dictates healthcare policy, while county councils and municipal governments provide services. The system is funded by taxes and government contributions, with patients paying small out-of-pocket fees.

Private health insurance is not common in Sweden, with only about 10% of Swedes opting for it. However, this number is increasing, as people seek quicker access to certain specialists and to avoid waiting lists for elective treatments. Private insurance in Sweden is complementary, offering faster access to care in the private sector for services usually covered by the public system.

Sweden's public healthcare system

The Swedish healthcare system is decentralised, meaning it is managed and run by the regions, local authority, or municipality. The healthcare system is divided into public and private sectors, with public healthcare managed and provided by the county council, local authority, or municipality.

The Swedish National Healthcare Services are both public and private. There are two types of private healthcare. The first is provided by a private company under contract with the county council, local authority, or municipality, in which case the cost of private and public healthcare is the same. The second is provided by a private company with no contract with the National Healthcare Services, in which case the patient is liable to pay the full cost of any treatment and care they receive.

Public health services are to a large degree integrated into the primary health care services provided by county councils, although public health work goes beyond curative health care services. Primary health care services are offered to all free of charge for children, pregnant women, and mothers. Preventive and health promotion services provided within curative care are usually directed at individual patients.

The Swedish healthcare system guarantees low-cost appropriate care to all citizens with equitable access. However, drawbacks of the system include a high financial burden, a lack of primary care infrastructure, and geographical and socioeconomic inequities.

Private insurance in Sweden

Sweden has a social democratic model of healthcare, with a focus on providing equitable medical care to all individuals. While the country guarantees low-cost healthcare to all citizens, drawbacks of its system include high financial burdens, long wait times, and a lack of primary care infrastructure. As a result, about 10% of working-age Swedes have opted for private health insurance, which offers faster access to certain specialists and treatments. This figure has been increasing, with more people turning to private insurance to supplement the public system.

Types of Private Insurance in Sweden

There are various types of private insurance available in Sweden, including:

• Health and accident insurance: This provides financial compensation in the event of a serious illness or permanent injury.
• Child insurance: This covers children in the event of accidents or illness, as they are not covered by social insurance.
• Student insurance: Students who move away from home or study abroad may require their own insurance, including home, travel, and accident coverage.
• Pet insurance: Coverage for pets.
• Dental insurance: Not considered insurance, but a fixed monthly payment provides access to regular dental care.
• Life insurance: Financial security for families in the event of the insured person's death.
• Private pension insurance: A separate savings scheme for retirement, combined with insurance.

Public vs. Private Healthcare in Sweden

Sweden has a universal public healthcare system, ranked 23rd out of 191 national healthcare systems by the World Health Organization. The central government sets policies, while county and municipal governments provide services. The system is funded primarily by taxes (97%) and government contributions, with patients paying small co-pays. Private healthcare, on the other hand, offers quicker access to specialists and avoids waiting lists, providing a higher degree of comfort and privacy. However, it is more expensive, with higher premiums and treatment costs.

Pros and Cons of Private Insurance in Sweden

Private health insurance in Sweden

Sweden has a social democratic model of healthcare, with a focus on providing equitable medical care to all individuals. While the country guarantees low-cost healthcare to all citizens, drawbacks of the system include high financial burdens, a lack of primary care infrastructure, and geographical and socioeconomic inequities. As a result, about 10% of working-age Swedes have subscribed to a private health insurance plan. This insurance covers forms of care that are not covered by public plans, including chiropractic care, dietician access, rehabilitation, and at-home post-surgical care. Most private health insurance providers also offer health care planning, counselling services, and allowances for drugs, vaccinations, dental care, and overseas care.

Voluntary Health Insurance (VHI)

Sweden also has a programme of Voluntary Health Insurance (VHI) that is predominantly used by private sector employees and businesspeople. VHI is primarily used in a complementary setting to cover out-of-pocket payments associated with public healthcare use. It is also used to a lesser extent in a duplicative setting to expedite access to normally free healthcare that may have longer wait times. VHI premiums are based on health risks, meaning that individuals who are most likely to desire additional health insurance are the least likely to be accepted by private VHI providers. However, VHI popularity has grown over the past two decades, especially among privileged individuals, as it provides coverage for services not traditionally covered by standard Swedish public health insurance. Despite this, only 10% of Swedes between the ages of 16 and 64 own a VHI policy.

Private Health Insurance Benefits

One of the main benefits of private health insurance in Sweden is faster access to healthcare services, particularly for appointments with specialists. Wait times in the public healthcare system can be lengthy, and the norm for waiting times for specialist care is about 100 days. In contrast, the average waiting time for a first visit to a specialist through private insurance is typically within 3 days. Private insurance can also provide additional financial security in the event of a serious illness or injury, as well as cover for dental procedures, drug expenses, co-payments, psychiatric treatment, and costs associated with loss of income due to illness.

Considerations for Expats

For expats moving to Sweden, it is important to note that while the Swedish healthcare system offers universal coverage to all its residents, there may be a waiting period before becoming eligible for this coverage. During this time, it is recommended to have comprehensive private health insurance or travel insurance that covers medical expenses. Once residency is obtained, expats will need a personal identification number ("personnummer") to register for the universal healthcare system. It is also worth noting that while most medical expenses in Sweden are covered by the government, there may be some out-of-pocket costs, which are generally low thanks to government subsidies. There is a yearly cap on how much patients pay for medication and medical care, after which the government continues to pay with no co-payment from the patient.

Voluntary health insurance (VHI)

The VHI market in Sweden has grown over the years, especially among white-collar workers in private companies. However, less than 5% of the population had VHI coverage in 2011. The growth of the VHI market can be attributed to several factors:

• Concerns about productivity loss due to sick leave while waiting for elective treatments.
• Increased marketing of VHI, partly due to more insurers entering the market.
• A growing number of employers, organizations, and associations offering group plans where employees can opt-in.

VHI policies can be group policies paid for by employers, group policies where employees pay their premiums, or individual policies. The insured individuals gain access to services such as a telephone helpline, elective care, and rehabilitation.

The primary motivation for employers to offer VHI is to reduce sick leave by providing shorter waiting times for employees. For individuals, VHI serves as added security for elective care and sometimes as a status symbol.

VHI premiums are not tax-deductible for employers or employees. However, the complementary part of the premium (1-3%) and dependent coverage may be tax-exempt. While the role of VHI in health financing remains marginal, it continues to grow, mainly driven by demand from small and medium-sized companies.

The role of private insurance in Sweden's healthcare system

Sweden has a universal public healthcare system, considered one of the best in the world. The central government dictates healthcare policy, while county councils and municipal governments provide services. The system is funded by taxes and contributions from the government, with patients paying small co-pays at doctor visits.

Private health insurance is not common in Sweden, with only about 10% of Swedes opting for it. However, this number is increasing. Those who choose private insurance do so for quicker access to certain specialists and to avoid waiting lists for elective treatments. Treatment at private hospitals and clinics also offers patients a higher degree of comfort and privacy for patients.

Private health insurance in Sweden covers forms of care not covered by public plans. This includes chiropractic care, dietician access, rehabilitation, and at-home post-surgical care. Most private health insurance providers also offer health care planning and counselling services, public usage fee coverage, and allowances for drugs, vaccinations, dental care, and overseas care.

Sweden also has a programme of Voluntary Health Insurance (VHI) that is predominantly afforded by private-sector employees and businesspeople. VHI is primarily used in a complementary setting to cover out-of-pocket payments associated with public healthcare use. It is also used less frequently to expedite access to normally free healthcare with long wait times.

The growth of the VHI market has been fuelled by a few factors: concerns about the loss of productivity associated with sick leave while waiting for elective treatments; increased marketing of VHI; and a growing number of employers, organisations, and associations offering group plans.

Despite its growth, the role of VHI in health financing remains marginal, and it does not attract much public attention. This may be because private insurers contract solely with private providers, whose incomes are mainly derived from contracts with county councils, not insurers. The number of patients with VHI treated by private providers is marginal compared to the total number treated privately.

Pros and cons of private insurance

The pros of private insurance in Sweden include quicker access to certain specialists and avoiding waiting lists for elective treatments. Treatment at private hospitals and clinics also means a higher degree of comfort and privacy for patients.

The cons include higher costs, with premiums and treatment more expensive when using private insurance.

Frequently asked questions