Changing health insurance policies or health funds is easier than you might think, and could be worth considering if you’re looking for a better deal, or your family situation is changing.
Let us show you how it works.
If you want to switch health insurance, you can compare policies online view our comparison service to see if there is an alternative policy that meets your needs. If you switch health insurance with us, we can handle the paperwork for you. Your old fund can provide a clearance certificate that your new insurer will require when you switch health insurance.
There are many reasons to switch health insurers. For a lot of us, the number one reason is to save money and ensure your healthcare needs are adequately covered! Do you feel like a new policy would provide better value for your money?
Others reasons to switch insurers is a change of circumstance (maybe you’re considering kids), or you’re trying to consolidate your bills with your partner.
There are several other reasons though, which could ‘sweeten the deal’ such as;
If you’ve completed your waiting periods, you won’t have to re-serve them again once you switch for the same services which were covered by your previous policy.
However, if you are adding to or upgrading your existing hospital or extras cover you will still be subject to waiting periods for the additional services you will gain in the new policy. To qualify for waived waiting periods you also need to have continuous, unbroken cover.
For example, you will need to serve out waiting periods if:
If you’re switching health funds, you will need to provide the clearance certificate from your previous fund to establish your previous level of cover and the waiting periods which you have served.
Does your new health fund have an agreement with a particular health provider? Getting treated there can help lower your out-of-pocket expenses (or gap payments), provided you’ve sat through any applicable waiting periods.
Depending on your policy and the health insurance provider, you may be able to find a new extras policy that has more generous limits on how much you can claim for a particular treatment within a 12-month time period.
Consider if the annual limits will be adequate for your needs. Be aware that some funds have lifetime limits for some treatments like orthodontics.
Does your new health fund offer loyalty bonuses, like discounts (e.g. upon sign-up, or if you pay by direct debit ), increased limits for some treatments the longer your with them, reward points for gap payments, and other incentives, like discounted gym memberships or movie tickets?
While you may lose these bonuses from your old fund, you might gain some new ones by switching.
Any Australian Government rebate you receive for your current policy will still apply to your new policy. So if you’re currently enjoying a lower premium or choosing a yearly rebate at tax time, you should continue to do so – provided your income and age threshold hasn’t changed.
The table below breakdowns the health insurance rebate by age group, family status and income.
| Base Tier | Tier 1 | Tier 2 | Tier 3 | |
| Singles | Under $90,000 | $90,001-$105,000 | $105,001-$140,000 | $140,001 + |
| Families* | Under $180,000 | $180,001-$210,000 | $210,001-$280,000 | $280,001 + |
| Under 65 | 25.059%
| 16.706% | 8.352% | 0.00%
|
| 65-69 | 29.236%
| 20.883% | 12.529% | 0.00% |
| 70 and over | 33.413% | 25.059% | 16.706% | 0.00% |
| Australian Government Private Health Insurance Rebate. Commonwealth Ombudsman for Private Health Insurance, Australian Government, 2019. * For families with children, thresholds increase by $1,500 for each child after the first. Families include couples, de facto couples, and single parents. | ||||
Changing health insurance providers will not affect your Lifetime Health Cover (LHC) status. In fact, if you’re already paying the loading, you’re paying extra for health insurance as it is – so it’s worth seeking out better value policies so you can minimise monthly costs.
The same goes for the Age-based Discount. If you currently enjoy a percentage discount on private hospital cover, you’ll continue to do so until you hit the age limit in your forties, if you move to another policy with an age-based discount. Even if you switch health insurance after you turn 30, you can keep your discount if your new insurer offers a retained age-based discount.
Yes, you can switch health insurance providers whenever you like. If you have paid any premiums in advance, your old fund will prorate your premiums and refund the balance less cancellation fees and administration costs. This means you’re not penalised for shopping around for a policy and insurer you like.
Remember that you will have to finish waiting periods before you can make a claim, and these reset if you upgrade to a higher level of cover.
Yes, if you want to switch to a different health insurance provider, you can do that. Just keep in mind you’ll have to finish any incomplete waiting periods before making a claim. When upgrading cover, you’ll have to sit waiting periods for the new services covered.
Resitting waiting periods when upgrading to a higher level of cover applies whether you remain with the same health fund or are changing providers.
While you can switch health insurance at any time, you should consider your waiting periods and the yearly premium increase. Every year, health insurance premiums rise on 1 April. This makes it a good time to consider if you want to switch to a better deal with another provider.
You can cancel your health insurance policy at any time. Should you only want to cancel your policy instead of switching, you can contact your insurer directly and fill out a cancellation form. Any premiums you paid in advance will be refunded, minus costs and cancellation fees.
Keep in mind if you cancel your policy and re-join later you will have to reserve all waiting periods, and a long absence from cover could see you facing LHC on your insurance premiums if you take out insurance again; plus you could lose an age-based discount.
One way we help you switch is by providing a simple-to-use online comparison service, though if you feel more comfortable talking over the phone, that option is also available to you.
Once you sign up, your new health fund will act on your behalf to cancel your old policy and request your clearance certificate from your previous health fund.
Depending on the start date of your new policy, if there’s an overlap with the premiums you’ve paid your old health fund, the difference will be refunded to you. Just keep in mind that you may need to cancel any direct debits to your old health fund with your financial institution.
Ready to make the switch? Try our easy-to-use comparison tool today.
