How do I change health insurers? 

So, you’ve taken a look at your health insurance policy and have decided it’s not right for you. Maybe it doesn’t fit your budget, or maybe it’s not meeting your healthcare needs any longer. Whatever the reason you have to switch, we’re here to help you with changing health insurance, without the headaches. 

Should I change health insurers?

What’s the best health insurance to choose?  

First of all, if you’re changing health insurance you need to find a new policy that offers you great value. Because you’re busy, we recommend using the healthslips.com.au calculator, which is free and fast, and is one of the few that shows you all the policies from all 46 insurers without bias. It’s the most efficient way to make sure you’ve found the best value policy available.  

Make sure you choose a policy that covers all the health areas you need now and in the near future, and also check what limits and waiting periods apply. If you’re switching to a Hospital Cover policy at the same tier, or a lower tier, you won’t have to serve waiting periods again.

What happens to waiting periods when you change policies?

Most importantly, you’ll also need to find out the exact price you’ll be paying. To make sure you don’t get any nasty shocks, make sure you have factored in all the government incentives and penalties that apply to you. These may affect the price you pay: 

• Private Health Insurance Rebate – also known as the Government Rebate, this makes health insurance cheaper if you earn less than the threshold (check current thresholds here).
• Age-based Discount – if you start cover before age 30 and maintain it, some health insurers will charge you less for health insurance until you reach 41. 
• Lifetime Health Cover Loading – if you didn’t take out Hospital Cover before the age of 31, you’ll pay an extra 2% for every year you are over the age of 30, which remains in place for 10 years (up to a maximum of 70%).  

Your price may also be affected by any health insurer promotions on offer, and if you’re taking out a family policy, you’ll pay more for adult dependants under 31 who aren’t full-time students, and dependants with disability aged over 18.

Work out your government incentives and penalties using our calculator.

How to change health insurers 

Here are the steps to change to a new health insurer. 

1. Get a quote in writing from your new insurer. Review the details carefully to make sure it covers what you need, and that you understand the waiting periods, excess and rules around pre-existing conditions. 

2. Cancel your policy (including your direct debit arrangements). 

3. Contact your new insurer to start your new policy. Make sure the Transfer Certificate (sometimes called a Clearance Certificate) from your old insurer is sent to the new insurer.

4. Check your bank statement to make sure the new cover has started, the old one has been cancelled and the two don’t overlap.  

If you’ve changed your mind, most insurers allow you to cancel your new insurance within 30 days, known as a cooling-off period. If you haven’t claimed any benefits, you can ask your insurer for a refund of your payments.  

Trudie McConnochie

Writer and Researcher

Knowledge is power – that’s the guiding principle behind everything Trudie writes, and it’s a philosophy she brings to her work at healthslips.com.au. By breaking down complex information into easy-to-understand blogs and stories, she aims to empower Australians to make the best choices and an informed decision around private health insurance.

Trudie understands firsthand some of the complexity of private health insurance having moved to Australia from New Zealand and having to navigate a vastly different public healthcare system and health insurance structure.

Trudie holds a Bachelor of Communication Studies (journalism major) from the Auckland University of Technology.

Read more.