Switching Health Insurance

Most Aussies don’t wake up thinking about their health fund. But certain changes force them to reconsider. These reasons often prompt a switch:

• Rising premiums. You might be paying more each year for the same level of cover, with fewer benefits in return.
• Better value elsewhere. Some providers offer added extras cover, lower hospital excess, or more generous annual limits.
• Life changes. Getting married, having a baby, or approaching the Lifetime Health Cover loading age could shift your needs.
• Policy no longer fits. A lower level of cover that once worked might no longer cover major dental, physio, or hospital treatment.
• Incentives for new members. Many health insurance providers offer sign-up perks, waived waiting periods, or better out-of-pocket terms.

Switching isn’t just about chasing cheaper premiums. You’ll want to match your health care needs with the right cover.

Before jumping ship, weigh up the following:

• Your current policy. Take stock of what’s included in your current cover and how often you’ve used it.
• What you’ll need soon. Think ahead. Any surgeries, pregnancy, or physio on the horizon?
• Out-of-pocket costs. Look beyond premiums and compare excesses, no gap treatments, and out-of-pocket fees.
• Waiting periods. Switching like-for-like generally means your waiting periods carry over, but not always.
• Extras you actually use. Check-ups, optical, major dental. Are you getting value or just paying for extras cover you don’t need?

Picking the right fund isn’t about finding the cheapest. It’s about getting the best value for your health needs. GoSwitch lets you compare health insurance providers side by side with ease.

Follow these steps when comparing:

1. Review the tier (Basic, Bronze, Silver, Gold) to match your required hospital cover.
2. Check the benefits. What’s included or excluded in the hospital policy and extras cover?
3. Look at the hospital excess and any annual or lifetime limits on health services.
4. Compare waiting periods, especially for major dental, optical, and private hospital admissions.
5. Use GoSwitch to filter by price, benefits, and special deals from recognised funds.

Switching can be easier than most people expect. Here’s how it usually works:

1. Compare health insurance providers through GoSwitch and choose a new policy.
2. Apply for the new cover. Most funds allow instant online applications.
3. Your new fund will request a transfer certificate from your previous insurer.
4. Once the certificate is received, your old policy is automatically cancelled.
5. Direct debit will be set up with your new fund to start your payments.

But what about waiting periods or benefit resets?

Switching isn’t just about price. It’s about squeezing the most from your policy. With the right strategy, you can make your new cover work harder for you:

• Use extras for check-ups and services you’re already paying for before benefit limits reset.
• Look for no gap dental, optical, and physio to cut your out-of-pocket spend.
• Review your policy yearly to adjust to changes in health needs or provider offers.
• Check if your policy is based on calendar year or financial year to optimise your timing.

The Australian Government gives you protections when switching private health insurance. You have a cooling off period of 30 days from when your cover starts (not when you sign up) to change your mind and receive a full refund, provided you haven’t made any claims during that period.

Your new insurer must honour waiting periods already served with your previous insurer, provided the cover is equivalent. If you feel you’ve been treated unfairly, the Private Health Insurance Ombudsman is there to help.

In some situations, switching health insurance comes with extra considerations. Timing matters more when your health is involved. Keep these tips in mind:

• During pregnancy: Only switch if the new cover meets your due date and waiting periods won’t be reset.
• Ongoing treatment: Delay switching if you’re mid-treatment, as your new policy might not fully cover your care.
• Post-surgery: Wait until all follow-up appointments and hospital claims are complete before making a move.
• Chronic illness: Speak to your current fund before switching to avoid reduced access to care or medication.

Switching can backfire if done at the wrong time. A few situations call for a pause:

• While making a claim: Switching could complicate payout approvals or cause gaps in cover.
• Right before benefits reset: You could miss out on using extras that refresh each calendar year.
• If you’ve already served long waiting periods: Don’t risk losing those benefits unless the new policy is better value.
• When offers are unclear: If a new policy isn’t transparent on hospital treatment or pre-existing conditions, stay put.

Still on the fence? Ask yourself these quick questions:

• Has my premium gone up with no real added value?
• Do I use the extras I’m paying for?
• Has my life situation changed recently?
• Am I still with my old fund just out of habit?
• Could I get better value with a different health insurance provider?

If you’ve ticked “yes” to any of the above, GoSwitch can help you compare and switch to a more suitable health insurance cover option. It’s quick, free, and puts you in control.