Step-by-Step Guide to Switching Your Health Insurance

I’m always on the hunt for relevant info and I loved this - one of the best articles I’ve seen on this topic for a while. Here are a few paragraphs as a taster.

Throughout life, your needs change, and the reason you signed up to your existing provider may not be your priority anymore.

What do I need to know about switching?

Both insurers should be well versed in this process and help you through any technicalities. However, it pays to know what's happening on the backend so you can move the process along should bureaucracy get in the way.

Here are some key concepts you'll need to be across:

• Portability is your friend. This important concept underpins the entire process of switching and it’s the number one reason switching is so easy. It's a guarantee from the government that you can switch health funds whenever you want without being penalised with new waiting periods.
• Review your claims history. Your clearance certificate will also include a claims history. If you've already used up some of your benefits, your new insurer will deduct these amounts from your new limits. Anything with an annual benefit limit will reset every first of January, but anything with a lifetime limit will never reset. Doubling up on benefits is not a reason to switch.

Switching to an upgraded policy with a new insurer

One of the reasons people switch health insurance providers is because their life circumstances have changed and they need an upgraded level of cover. Not all aspects of upgrading are protected by portability, but it’s a moot point because it's no different than if you had upgraded policies through your current insurer.

While the outcome is the same either way, it still pays to understand what happens when life calls for something new:

• You’re getting married and want couples insurance. One of you can move over to the other person's plan, or you can both jump ship and find a brand new policy together. If the level of cover is the same for both of you as it was with your individual policies, all portability requirements will apply. But if it represents an upgrade for one or both of you, then one or both of you will have to sit out the waiting periods for any new benefits the new policy offers.

Pretty valuable stuff, I’m sure you’ll agree! Why not check out the whole article HERE and share your thoughts with me afterwards: call on (07) 3243 0000 or email me at [email protected].

Thanks,

Mark