How to Switch Health Insurance Funds in Australia

The good news about switching

Many Australians stay with the same health fund for years out of fear of losing their waiting periods or facing complexity. The reality is that switching is straightforward and your rights are protected by law. You do not re-serve waiting periods when you move to an equivalent or lower level of cover. Your new fund is required to recognise them.

Australians who had been with the same insurer for over a decade spent 29% more on premiums on average compared to those who had joined their fund less than a year ago, according to Compare the Market's 2025 Household Budget Barometer. Loyalty does not typically pay in private health insurance.

Step by step: how to switch funds

Compare your current policy against alternatives

Use our compare tool to find policies at the same tier level with better pricing or inclusions. Focus on equivalent or lower cover to protect your waiting periods.

Note your current waiting period status

Check which waiting periods you have already served on your current policy. Contact your fund or log into your member portal to get a waiting period clearance summary.

Join your new fund first

Sign up with your new fund before cancelling the old one. This ensures you have no gap in cover, which matters both for MLS purposes and for continuous cover requirements.

Your new fund requests a transfer certificate

Your new fund will contact your old fund on your behalf to request a transfer certificate. This document confirms your waiting period history. You generally do not need to manage this yourself.

Cancel your old policy

Once your new fund confirms your cover is active, contact your old fund to cancel. Get written confirmation of the cancellation date. Check whether you are entitled to a refund of any prepaid premium.

Confirm your waiting period status with the new fund

After switching, ask your new fund to confirm in writing which waiting periods have been transferred and what you are currently eligible to claim. Keep this document.

What happens to your waiting periods

Under the Private Health Insurance Act, if you switch to the same or lower level of hospital or extras cover, your new fund must recognise the waiting periods you have already served with your previous fund. You do not start from zero.

Same or lower cover

All previously served waiting periods transfer. You can claim immediately for anything you were eligible to claim under your old policy.

Upgrading your cover

If you upgrade to a higher tier or add new clinical categories, new waiting periods apply only to those specific new inclusions. Your existing waiting period clearances remain in place for everything else.

The one exception is if you have a gap in cover of more than 1,094 days (approximately three years). In that case, waiting periods may need to be re-served. This is rare for people simply switching funds.

Best time of year to switch

Premium increases take effect on 1 April each year. This is the single best time to review your cover and switch if you are going to. Switching before 1 April means you avoid the increase from your old fund. Switching after means you have already paid the higher rate for at least part of the year.

Many funds offer joining incentives in February and March to attract switchers before the premium increase date. These can include waived waiting periods on extras, free months of cover, and gift cards.

Some funds allow you to prepay your premium at the old rate before 1 April if you pay annually. If you plan to stay with your current fund, this can save you the full year's increase. Ask your fund whether this option is available.

Pre-switch checklist

Work through this before cancelling your current policy:

I have confirmed the new policy is at the same or lower tier as my current cover

I have checked all clinical categories I currently use are included in the new policy

I have confirmed my current waiting period status with my existing fund in writing

I have joined the new fund and received confirmation that my cover is active

I am not in the middle of a claim, hospital admission, or treatment course

I have confirmed whether I am entitled to a refund for prepaid premiums from my old fund

I have asked my new fund to confirm my transferred waiting periods in writing

Common switching mistakes

Cancelling your old policy before your new cover is active, creating a gap and potential MLS liability
Switching to a lower tier to save money without realising it removes cover for upcoming planned treatment
Assuming extras waiting periods always transfer -- some funds apply new waits on extras upgrades
Not checking whether your preferred hospital or specialist is in the new fund's network
Switching during or immediately before a planned hospital admission
Not getting written confirmation of transferred waiting periods from the new fund

Never cancel your old policy over the phone without getting written confirmation of the cancellation date. Verbal cancellations can be disputed and you may end up being charged for both policies simultaneously.

Did your old fund mishandle your switch?

If your previous fund refused to issue a transfer certificate, applied incorrect waiting periods, or charged you after cancellation, you have rights. DisputeSmart can help you navigate the complaint process.

Get help with your dispute

Switching Health Funds