Switching health insurance: How to change providers?

Why switch health insurance?

Private health insurance premiums typically increase every year on April 1, with the Federal Government announcing an average annual premium rise of 3.73% for 2025. Some policies, such as a Gold-tier hospital policy, rose by up to 13.8%.

If you’re feeling the pinch, then switching your health insurance to a cheaper provider or policy may be one way to reduce your overheads.

It’s important, however, to weigh up more than just the cost when considering changing health insurance. Factors such as the level of coverage, waiting periods, and your own personal needs can determine the suitability of a new policy or provider.

If you’re looking for a place to start, Canstar’s annual Health Insurance Awards recognise the providers who offer outstanding value to customers. Comparing policies is the first step to reviewing your current cover, but making the switch couldn’t be easier. You can also get a personalised health insurance quote by clicking the button below.

How do I switch health insurance?

When switching health insurance providers, your new provider can typically handle most, if not all, of the process for you. You’ll need to provide them with the details of your old policy and provider. Your new provider can then request to cancel your old policy on your behalf.

Your old health insurance provider will need to submit a transfer certificate or ‘clearance certificate’ to your new provider. This will include information about your previous type and level of cover, the waiting periods that you’ve served and your claims history.

When changing health insurance, your old fund is legally required to provide the transfer certificate to your new provider within 14 days, to help ensure continuity of your cover.

Do I need to cancel health insurance before switching?

Your new provider should be able to cancel your previous policy for you, although this may not always be the case. If you have direct debits set up with your old health insurance provider, you may also have to cancel these once you’ve switched.

Most insurance providers also offer a 30-day cooling-off period. This means that if you change your mind within 30 days of joining the new health fund and haven’t made any claims, you can often ask for a refund of any premiums you’ve paid.

Can I change my private health insurance any time?

You can switch your private health insurance at any time. If you’ve paid any premiums in advance, your old health fund should refund your premiums for any unused cover, when you change funds.

When is the best time to switch health insurance?

In some cases, it may be beneficial to switch ahead of the annual increase (1st of April). This is because many private health funds allow you to pay your premiums in advance.

One benefit of pre-paying is that often you can lock in your current premiums before the increase. The potential savings will depend on how much your new provider is increasing its premiums. A handful of providers also offer a discount if you pay your premiums in advance.

Do I have to re-serve waiting periods?

If you switch to a policy with the same or a lower level of cover as your previous policy, you typically won’t need to re-serve waiting periods. But waiting periods may still apply for any new or added services or benefits under your new policy.

You may also need to serve waiting periods that you didn’t complete with your old provider, as well as serve waiting periods again if there’s a gap between the end of your old policy and the start of your new one.

What happens to my annual limits on Extras?

It’s important to check with your new provider how annual limits will work when you change your Extras policy or combined hospital and Extras policy. Annual limits are the maximum amount you can claim back on Extras (services such as dental, optical and physio) each year.

According to the Private Health Insurance Ombudsman (PHIO), when changing health funds your new provider can reduce any annual benefit limits by the amount you’ve already claimed for the applicable services under your previous policy that year.

Also keep in mind that lifetime limits may apply. These are the total amount you can claim for a service in your lifetime across different insurance providers and often apply to services such as orthodontics. If you’ve already claimed up to your new policy’s lifetime limit, you won’t be able to claim any further benefits for these services.

Does switching health insurance affect my Lifetime Health Cover (LHC) loading?

Changing health insurance should not affect your Lifetime Health Cover (LHC) loading status, provided you maintain an eligible hospital policy. The LHC loading applies a 2% increase to your hospital premiums for every year after your 31st birthday that you don’t take out hospital cover, up to a maximum loading of 70%.

To cover gaps, such as when you’re switching from one provider to another, you’re allowed to be without hospital cover for a total of 1,094 days (three years minus one day) during your lifetime, without it affecting your LHC loading.

Will I get to keep any loyalty bonuses or discounts?

Loyalty bonuses don’t usually carry over to your new provider, but it may be worth checking to see if it’s possible.

Your old provider may have also offered you a discount, such as an age-based discount for people aged between 18 and 29. For age-based discounts, providers can choose whether they’ll be honoured if you switch policies or funds.

It’s a good idea to check on the discounts you may be receiving and how they’ll be affected before changing providers. Some providers also offer sign-up deals and discounts for new members.