Health insurance hikes hit today, as research shows 44% of Aussies have never switched

With private health insurance premiums on the rise today, new Canstar research shows many Australians remain reluctant to shop for a better deal. 

The survey of over 5,500 Australians with private health insurance found 44% have never switched providers, despite the potential to significantly cut costs.

Source: Canstar. Based on a national survey of 5,506 Australian adults with private health insurance.  

Savings from switching

Canstar analysis shows if an individual switched from the average-priced gold hospital insurance to the lowest, they could potentially save $1,387 in a year. 

The exact savings will vary depending on your location and the type of cover you need. 

Source: Canstar - 31/3/26. Notes: new customer premiums on Canstar’s database, excluding ‘plus’ tiers, with the govt rebate of 16.192% applied, based on the average wage. National average based on state averages weighted by proportion of hospital insured persons per APRA Quarterly Private Health Insurance (Dec 2025). Mins are averages based on the lowest-priced policy in each state and territory. Consumers should check waiting periods and the Private Health Information Statement before deciding to switch. 

Switching health funds: the truth about waiting periods 

Many people assume switching health funds means starting waiting periods from scratch. However, if you are moving to the same or a lower level of hospital cover, this is not true.

Some funds will also waive waiting periods on extras for new members.

For those upgrading their cover, waiting periods can be up to 12 months, particularly for pre-existing conditions.

The script to help you switch

Always compare policies online first to see what’s available, then use these questions when talking to your current or prospective fund.

1. Ask what’s included: “Can you explain exactly what this policy covers, including any limits or exclusions?”
2. Check the less obvious costs: “What will my excess, co-payments and potential gap fees be for key treatments?” 
3. Confirm waiting periods: “If I switch, will I need to re-serve any waiting periods for hospital or extras cover?”
4. Ask about promotions: “Are there any current offers or discounts for new members?”
5. Confirm transfer dates and details: “When will the new policy start, and how can I cancel my old policy without leaving a gap in cover?”

Haggling is also an option

Even if you want to stay with your health fund, you can still pick up the phone and negotiate. 

Right now, dozens of health insurers are offering up to 12 weeks free cover, gift cards and frequent flyer points for new customers.

This doesn’t preclude existing customers from getting these discounts. Often, all it takes is one phone call. In fact, under the Private Health Insurance Act, current members can receive up to 12% off their premiums. 

Canstar's data insights director, Sally Tindall, says, “Australians are being hit with another round of premium increases, yet millions are still sitting on the sidelines when it comes to switching health funds”.  

She added: “Loyalty might feel comfortable, but it could also be costing households hundreds, if not thousands, of dollars each year.

“Canstar research shows that if someone switched from the average to the lowest-priced gold hospital policy, they could potentially save an incredible $1,387 in just one year. 

“One of the biggest barriers to switching is a fear of having to re-serve waiting periods, particularly for pre-existing conditions, however, government regulation has your back. 

“The Private Health Insurance Act of 2007 states that customers looking to switch to a policy with the same or lower level of cover do not need to reserve any hospital waiting periods. 

“This misunderstanding alone could be stopping many Australians from exploring better value options.

“With costs ramping up yet another notch, now’s the time to take a closer look at every recurring expense in your budget and health insurance should be near the top of the checklist.

“Remember, switching isn’t your only option. If you’re happy with your current insurer, pick up the phone and ask for a better deal. Recite back to them the new customer promotion they’ve probably got running and ask as a loyal customer, why you’re getting the raw end of that deal.”

Source: Canstar. Terms and conditions apply, which can include taking out hospital and extras cover, valid cover until a particular date, total  weeks free contingent on cover for more than a year.