Four Must-Consider Factors When Switching Health Policy

With free and affordable access provided by the public health system, Australia boasts one of the top healthcare systems in the world. It is supplemented by the private sector, which supports around 3.6 million of Australia’s population. 

However, health insurance does not guarantee you are getting value for your money. Since 2017, the premiums for health insurance have gone up by 15.56%, pushing some customers after many years to switch loyalty. Health insurance premiums increased once more in April 2022. Now is an excellent time to evaluate your health insurance costs and whether they are reasonable, given the benefits you receive. Changing a health insurance provider seems like a hassle, but it doesn’t have to be. 

Switching health insurance can be easy if you know where to look for information and what to ask. Doing so significantly lowers your premium rates with the least hassle and without requiring a new waiting period. 

Review your Current Policy

For each insurance policy, the health funds provide a fact sheet called Private Health Information Statement (PHIS) that lets you compare your coverage. Once you’ve narrowed down on a better policy, you can go ahead and make the switch. Consider factors including the level of coverage, waiting period, and your individual needs when selecting a new Health insurance coverage. Depending on the various elements, you can switch once you compare health insurance policies and find one that meets your requirements. Here’s how you go ahead. 

Make the Switch

Most of the transfer is typically handled by your new insurance provider. Your old membership with the old fund will be cancelled once you submit your details to them. Your old insurer will also need to provide a transfer certificate to the new insurer, which includes information about your previous type, coverage, claims history and waiting period. 

When to Switch a Health Insurance Policy

You can change your health insurance at any time. If you have paid any premiums in advance, your old health fund should reimburse you for the remaining years of coverage when you switch funds. In some situations, it works out well to change your health insurance plan before the yearly hike, typically occurring on the first of April every year.

When you increase your insurance coverage, you must serve a new waiting period before making a claim, regardless of whether you switch or stay with your current provider. Even if you want to increase your coverage from $200 to $300, you must serve a new waiting period before accessing the total amount. 

Factors to consider when switching insurance

When switching health insurance, the cost of premiums is an obvious consideration, but it should not be the only factor in your final decision. It would help if you also considered the length of the waiting period. If switching to the same or lower coverage, you should not have to serve any new waiting periods. However, if you increase your coverage, you may have to wait out a new one, particularly if you intend to file a claim soon after switching providers. 

  • Level of Coverage: Not all providers are the same, and you may discover that another fund offers a better product that meets your specific healthcare needs. 
  • Payments: Before switching your provider, determine if your new plan requires you to use a specific hospital with a mutual agreement with the insurer. If you choose to use a hospital or practitioner other than that has partnered with your provider, you may incur out-of-pocket costs.
  • Bonus: Consider whether it’s worthwhile to forgo any discounts or bonuses you may have accrued for your loyalty if you have been with the same provider for a long time before deciding to move.


There are several crucial factors to consider when considering switching health insurance plans. These include reviewing your current policy and comparing it with other providers regarding payments, waiting periods, and loyalty bonuses. If it feels too daunting, you can compare policies online and find the right plan that balances cost and coverage.

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