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How to switch health insurance: Step-by-step
Find out exactly how to switch health insurance and get a better policy for your needs. Plus, tips on avoiding gaps in your cover ahead of the switching process.
Whether you're fed up with annual premium hikes or your life circumstances have changed, now might be the right time to switch health insurance. And you'll want to feel assured that you're doing so without losing the benefits and good reputation you've built up. Let's take a look.
Switching health insurance, step-by-step
Do your research
Find a new policy. This takes a little time, but we can help. You can start looking for the best health insurance for you here.
Sign up for a policy
Sign up for the new policy. You new provider will ask you about your existing cover and handle all the back-end administration.
Check with your old fund
You probably won't need to cancel your old cover, but it's a good idea to double check so that you aren't charged twice.
Switch health insurance with these sign-up deal for September 2024
One of the best things about switching health insurance providers is that you may be eligible for some sweet sign-up deals! As long as you're a new customer to the new provider, any sign-up deal should apply to you. Here are a few live deals from Finder partners.
Finder survey: How often do people compare or switch health insurance?
Response
Male
Female
About once a year
18.54%
13.22%
I never compare or switch insurance
16.25%
17.24%
About every 2 yrs
10%
9.39%
About every 3+ yrs
7.5%
7.47%
More than once a year
3.96%
2.49%
Source: Finder survey by Pure Profile of 1006 Australians, December 2023
3 benefits of switching your health insurance fund
Sign-up deals
Health insurance sign-up deals are available to people switching providers, as long as you're a new customer to the fresh provider.
Quick and easy
Switching health insurance providers is easy - just sign up with the new provider. The new provider will sort it all out for you.
No extra waiting periods
Any waiting periods you've already served will transfer to your new provider, as long as the coverage level is the same.
4 things to know about switching cover
You won't re-serve waiting periods for hospital treatments.
If you're increasing your cover level, you might need to serve new waiting periods. For example, if your new policy covers pregnancy but your old one didn't, you'll have to wait 12 months. The portability guarantee does not apply to extras, so your new insurer could make you wait again. But since they want your business, most insurers will honour your previous waits.
Make sure you're not paying double.
Your new fund should cancel your old cover, but it's worth checking in just in case. Health insurance premiums are usually billed a month in advance. Follow the process correctly and the old insurer will reimburse you for any overpayment if you're switching in the middle of your month.
Weigh up what your loyalty bonuses are actually worth.
Your health fund will definitely try to keep you. Enter loyalty bonuses: little perks that you can accrue the longer you stay. Your new insurer isn't required to honour these, but feel free to ask. Plus most insurers will offer sweet sign-on bonuses.
You have the right to change your mind.
Health funds will refund your money if you change your mind and cancel your policy within the first 30 days of signing up.
Tips for switching health insurance policies
Reconsider what you need. Maybe you're switching from your parent's policy, or it's been years since you last reviewed your cover. Loads of people are paying for a higher level of cover than they need to.
Don't just go for a combined policy. Many people assume that a hospital + extras plan from a single brand will be cheaper - not true! You can often save quite a bit by getting separate hospital and extras policies from 2 brands.
Don't fret about waiting periods. If you're worried that you'll need to wait another 2-12 months before your benefits kick in, don't! If you're switching and you've already served your waiting period, it will carry over.
Make the most from your extras. By picking the right extras policy, you can easily make your money back from the amount you save. Plus, if you've used up all your extras, you can just switch and start your benefits over again.
Watch out for couples policies. If you have a shared health policy, be wary of paying more than you need to - e.g. paying for pregnancy for both members. It usually makes sense for each of you to get a policy that works for you.
31 isn't a magic number. Many people think that turning 31 will increase their taxes - but that isn't it. The LHC is the extra amount you'd pay per year if you don't get health insurance. It doesn't affect switching in any way.
Older policies CAN be better - or cheaper. If your policy is older than ten years or more, there's a good chance that you're paying less for your policy than anything available these days. Consider holding on to it - unless you need a new level of cover or you want to add someone else on.
Overseas visitors need a special policy. Buying a standard policy won't cut it if you're on a visa or just visiting. You'll need to purchase an Overseas Visitors Health Insurance (OVHC) plan in order to be covered for Australian health services.
Should you switch policies after having a baby?
Your pregnancy benefits will cover your birth and related services, but if you want your baby covered beyond that point, you'll need to upgrade to a family policy. This could be a good time to switch.
Most insurers will back-date your baby's coverage to the date of birth and credit them with any waiting periods you (the primary policyholder) have already served, but only if you add them to the policy within a certain amount of time. This time frame could be as short as 2 months if you're currently on a singles/couples policy or as long as 4 years if you already have a family policy.
How to get a better policy
Identify your reasons for wanting to switch
Want a cheaper cover to avoid tax? Are you looking for better value for your money? Are you looking to add services like pregnancy or dental? Is your family expanding? Your answer will help guide your search.
Compare your options
You can now start considering options. Use our health insurance tool to conveniently compare policies side-by-side. Call insurers if you have any questions, and check out their product disclosure statements (PDS) for policy details.
Look for intangibles
When narrowing your options, see who goes the extra mile. Who's willing to honour your old loyalty bonuses or extras waiting periods? Who offers wellness programs and health-related discounts on products and services? Who has a good reputation online?
Consider negotiating with your current insurer
Your current insurer may be willing to offer you a discount or other perks if you mention that you've found a better deal elsewhere. Worst case scenario, they say no and you take the better deal.
Get it in writing
If your new insurer made any promises that aren't outlined in the PDS, get those in writing. This can include an agreement to honour your extras waiting period, an agreement to honour past loyalty bonuses or any discounts and perks offered during negotiation.
When is the best time to switch?
The best time to switch is when your life circumstances require it or you haven't reviewed your current policy for a while. However, health insurers often offer sign up incentives throughout the year so it's always worth and offers that may be available. It's also worth reviewing your price rise every April 1 to see if you're still getting value for money from your current policy.
Frequently asked questions
Yes, but portability rules still apply. If your old and your new policies both include pregnancy cover, you'll receive credit for any waiting periods you've already served (and will need to serve the remainder if necessary). If your old policy didn't include pregnancy cover and your new one does, you'll have to start from scratch. A typical waiting period for pregnancy cover is 12 months.
If your life circumstances call for a downgrade in coverage, by all means switch. Just make sure you keep enough cover to avoid the Medicare Levy Surcharge, who don't have enough private health insurance.
Your portability guarantee lasts for 7 days, so don't wait too long or you risk having to re-serve all your waiting periods. Any gaps in your cover can also affect your Lifetime Health Cover, a loading that you go without health insurance. After 1,094 non-consecutive days without health insurance, your loading will start over again.
The whole point of portability is to give you the freedom to switch insurers whenever you want. That means there is no such thing as being "locked in". It's possible to negotiate a discount in return for paying your entire annual premium in one up-front sum. If you've done that with your old insurer, they are obligated to refund any unused premium when you switch, but you may have to pay back any discount you received.
Tim Bennett is a Finder insurance & utilities expert. For over 10 years he's reported on news, politics, finance and other topics as a journalist and radio presenter. Tim's roles have included radio news reader and breakfast at the ABC, news producer for SBS and producer for Fairfax Media. Tim regularly appears as a health insurance expert on programs like Sunrise and SBS news, as well as in the Australian, The Daily Telegraph, The Courier Mail and more. See full bio
Tim's expertise
Tim has written 121 Finder guides across topics including:
Richard Laycock is Finder’s insights editor after spending the last five years writing and editing articles about insurance. His musings can be found across the web including on MoneyMag, Yahoo Finance and Travel Weekly. Richard studied Media at Macquarie University and The Missouri School of Journalism and has a Tier 1 Certification in General Advice for Life Insurance. See full bio
As a not-for-profit brand, HIF is able to offer low premiums across both hospital and extras policies.
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Depending on your age, you may be eligible for an
aged-based discount. This is used to estimate your
rebate.
Under 65
65 - 69
70 or older
What's your household's taxable income?
This is the combined income you and your spouse earn before tax. It's needed to calculate the correct Australian government rebate.
$93,000 and under
$93,001 to $108,000
$108,001 to $144,000
$144,001 and over
What kind of health insurance do you need?
Combined (Extras + Hospitals)
Extras
Hospital
What level of hospital coverage would you like?
You can change this at any time later.
Legend
Covered
Restricted cover, You may be partially covered for
this category.
Not covered. Optional for insurer to include.
*Prices updated March 2024, in line with Finder's
database of health insurance policies. Prices are based
on a single individual with less than $93,000 income and
living in Sydney with a $750 excess.
What extras cover do you need? (Optional)
Select as many as you want or move to the next step
Preventative & general dental
Major dental & implants
Optical
Physiotherapy
Podiatry
Non-PBS pharmaceuticals
Chiropractic
Emergency ambulance
Remedial massage
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