Key Takeaways
- You can switch policies any time. There are no lock-in contracts in Australian health insurance.
- Pre-paid premiums are refunded when you change funds so you won’t lose money.
- Waiting periods already served will carry over when you switch to an equal or lower level of cover.
If you didn’t take action before 1 April, when pretty much every health fund increased their premiums, you might be wondering: is it too late to do anything about it?
The short answer is no – it’s absolutely not too late to switch.
Is it too late to switch if I missed the price rise?
Despite what you may have heard, private health insurance in Australia is way more flexible than most people realise. There are no lock-in contracts, and if you’re on a policy that’s gone up in price, you’re still within your rights to review, compare and change providers without financial penalty – even if you’ve already paid in advance for your cover.
Here’s what you need to know about switching after the price rise – and why it’s not too late to find better value.
There are no lock-in contracts with private health insurance
Unlike your phone, energy or internet plan, private health insurance doesn’t come with a lock-in period. That means you’re free to leave your fund at any time, for any reason.
You won’t be charged an exit fee or penalty, and you don’t need to wait until your annual renewal or premium due date to make the switch.
In fact, one of the smartest things you can do – especially after a price rise – is to compare your current policy with what else is available in the market. You might find a similar level of cover at a lower cost, or a better policy with more generous inclusions.
If you’ve paid in advance, you’ll get a refund
It’s common for Australians to pay for health insurance monthly, quarterly or even annually to take advantage of discounts. But if you’ve prepaid for your policy beyond 1 April, that money isn’t gone if you switch. Your health fund must refund any unused premiums from the date your new policy takes effect.
This is another big reason not to feel trapped by your existing fund. You won’t lose what you’ve paid. Whether you paid upfront to beat the price rise or to reduce admin, switching won’t leave you out of pocket.
Just make sure your new policy is lined up to start on the day your old one ends. Fair Health Care Alliance can help you coordinate this easily.
You won’t re-serve waiting periods when switching cover
A common myth – and reason many people avoid switching – is the fear of having to serve new waiting periods on a new policy. Thankfully, that’s not how it works.
Under Australian health insurance law, your new fund must recognise any waiting periods you’ve already served – as long as you’re switching to the same or lower level of cover.
That means if you’ve done your time on things like:
- Hospital admission.
- Pregnancy and birth.
- Major dental.
- Extras cover like optical or physio.
You don’t need to start from scratch when you move to a new fund. The only time you’ll re-serve waiting periods is if you upgrade your cover to include things you weren’t previously covered for – and even then, only for the new benefits.
Portability
Don’t re-serve waiting periods when you switch to a new health fund or policy
“John was immediately covered for a hip replacement in private hospital because he had already served his waiting periods for joint replacements on his old policy”
Why switching still makes sense after 1 April
Too many people rush to review their policy in March, hoping to avoid the annual premium increase that kicks in on 1 April. But if you missed that window, don’t stress. You can still:
- Lock in a better deal going forward: Health funds don’t only adjust pricing in April – changes can happen throughout the year, especially for individual policy structures.
- Take advantage of sign-up offers or incentives: Funds tend to introduce perks like waived waiting periods or free months to attract new members – and many of these offers run well into the year.
- Make your current cover work harder: If you’ve been overpaying for outdated extras or cover you no longer use, now’s the time to trim the fat and get cover that reflects your current lifestyle.
With cost-of-living pressures rising, doing nothing could end up being more expensive in the long run.
How to compare policies with confidence
Switching doesn’t have to be a headache. Here’s how to take the guesswork out of comparing your options:
1. Use a broker, not a commercial comparison site
Commercial comparison websites don’t show the full market and usually only show policies they get paid to promote. A health insurance broker or expert team of advisors like with Fair Health Care Alliance can compare a broader range of funds and explain the differences to you.
2. Look for funds with strong benefits, not just low premiums
A cheaper premium doesn’t always mean better value. Look at:
- Benefit payout ratios.
- Customer service satisfaction levels.
- Networks of hospitals and providers.
3. Check for perks
Some health funds include things that can add value to your policy without increasing the cost of your premiums:
- Health coaching programs.
- Mental health support.
- Wellness discounts.
- Gym memberships.
- Loyalty bonuses.
How Fair Health Care Alliance can help
At Fair Health Care Alliance, we don’t believe in set-and-forget cover. We help everyday Australians make smarter choices about their health cover by:
- Comparing policies across a wide range of not-for-profit and major health funds.
- Matching you with the best policy for your needs and budget.
- Handling the switching process for you – no paperwork, no stress.
Whether you’re switching from a big-brand fund or just want to check if your current policy still stacks up, we can help you sort out your options and start saving straight away.
Conclusion
Missing the March window doesn’t mean you’re stuck paying more for a policy that’s no longer serving you. Don’t wait another 12 months. If your premiums went up and your policy no longer gives you the value it once did, now’s the perfect time to see what else is out there.
It’s never too late to prioritise better cover by comparing health insurance.
FAQ's
No. If you’re switching to the same or lower level of cover, your new fund will honour the waiting periods you’ve already served.
Any unused portion of your premiums will be refunded when you switch to a new provider.
Yes, but check with your new fund to make sure there are no restrictions. It’s usually fine if you’re moving to an equivalent-level policy.
Not with the right support. Fair Health Care Alliance makes switching simple – we’ll compare policies and manage the whole transition for you.
