Facts
The Canton of Glarus had enacted a provision in its Introductory Act to the Federal Health Insurance Act (EG KVG) allowing premium reduction contributions to be offset against tax debts. An insured person named Z. filed a complaint against this, as he wanted the premium reduction contribution to be paid out directly.
The Administrative Court of the Canton of Glarus upheld the complaint and declared the relevant provisions in the EG KVG to be unconstitutional under federal law. The Canton of Glarus then filed a complaint with the Federal Supreme Court.
Considerations
The Federal Supreme Court dismissed the complaint of the Canton of Glarus. It stated that the cantonal regulation on the offsetting of premium reduction contributions against tax debts is contrary to the objective of the Federal Health Insurance Act (KVG).
According to the KVG, the purpose of the premium reduction is to mitigate the financial burden of health insurance premiums for persons in modest circumstances. The cantons have a certain degree of discretion in the design of the premium reduction.
However, the Federal Supreme Court concluded that the offsetting against tax debts is not compatible with the purpose of the premium reduction. On the one hand, this contradicts the requirement that the…