Can I switch health insurance at any time?

Yes, you can switch health insurance providers whenever you like. If you’ve paid any premiums in advance, your old fund is required to refund the balance. Your insurer may choose to charge you an administration fee on cancellation, although this is very rare and will usually only be a small, affordable sum. This means you’re not penalised for shopping around for a policy and insurer you like.

When should I switch health insurance?

Health insurance premiums may increase every year at the discretion of the insurance provider (within the limits set by the Australian Department of Health). This makes it an excellent time to consider a better deal with another provider. Your health fund will notify you in advance about how much you can expect your premiums to rise, giving you plenty of time to potentially find a better value policy for your needs with a different health fund.

How do I cancel my health insurance?

Should you only want to cancel your policy instead of switching, you can contact your insurer directly. You can cancel your health insurance policy at any time, and your health fund will refund any premiums you’ve paid in advance, minus any administration or cancellation fees that some providers may charge. Keep in mind that you’ll have to re-serve all waiting periods if you cancel your policy and re-join after the acceptable ‘gap in cover’ period as set by each individual insurance provider. An extended absence from cover could also see you facing Lifetime Health Cover (LHC) loading on your insurance premiums if you take out insurance again; plus, you could lose an age-based discount . An alternative to cancelling your private health insurance altogether is to switch to a new fund with a lower level of cover to maintain these benefits. High-income earners should also be aware that they may be subject to the Medicare Levy Surcharge (MLS) if their income exceeds a certain threshold and they’re not covered by private hospital insurance – standalone extras cover will not avoid the MLS.