Switching Funds
Switching Health Insurance Funds
Australians who stay with the same fund for years without reviewing often pay far more than they need to. Switching is simpler than most people think — and you don't lose your waiting periods. Here's exactly how to do it right.
4.41%
Average premium increase from 1 April 2026
0 days
Waiting period re-served when switching at same level
30 days
Max gap in cover before portability is affected
The Core Rule: Waiting Periods Transfer With You
The biggest misconception about switching is that you have to “start over” with waiting periods. This is false. Under Australian law, portability means all your served waiting periods transfer to the new fund immediately — provided you switch to equivalent or lower cover without a gap. Source: privatehealth.gov.au — Waiting Periods.
Switching at same level
e.g. Silver → Silver
100% of served waiting periods carry across. Your new fund cannot make you re-serve them. Covered from day one of the new policy.
Upgrading cover
e.g. Silver → Gold
Silver-level benefits carry across. New 12-month waits apply ONLY to Gold-only benefits (obstetrics, IVF, joint replacements). Not to Silver categories.
Gap in cover ≤ 30 days
Short break when switching
Portability preserved. Keep your old policy active until the new one starts — even a few days of overlap is better than any gap.
Gap in cover > 30 days
Break before joining new fund
Portability can be affected. A gap of more than 30 days may mean re-serving waiting periods. Do not cancel early.
5 Things to Check Before Switching
1
Hospital tier level
Bronze, Silver, and Gold clinical categories are standardised nationally. Switching Silver→Silver means the same clinical categories. Check if any categories are restricted.
2
Excess amount
Your current excess might be $250; the new policy might be $500. The premium looks cheaper but your out-of-pocket at claim time is higher. Factor this in.
3
Extras annual limits
Check that the new fund's limits for services you actually use (dental, optical, physio) are comparable. Some funds look cheap but have low annual limits.
4
Gap cover network
If you have a preferred specialist, check whether they participate in the new fund's gap cover scheme before switching. This is often the biggest practical difference between funds.
5
Upcoming treatment
If you have planned hospital treatment, confirm the new fund accepts portability and that treatment will be covered before making the switch.
Could you be paying less right now?
Our agents compare your current fund against our panel and show you exactly how much you could save — without losing a day of waiting period credit.
See what I could save →The Best Time to Switch
Before 1 April each year
Best timing
Annual premium increases take effect 1 April. In 2026, the average increase is 4.41%. Switching before April means you start on the new fund's pre-increase rate and avoid the rise entirely. On a $200/month policy, that's $105/year saved immediately.
Major life changes
Natural trigger
Getting married (upgrade to couples/family), having a child (family cover needed), turning 31 (LHC deadline), income change (rebate tier shifts), or kids leaving home (downgrade from family) — all trigger a natural review.
When a specialist changes
Specialist-driven
If your preferred specialist has moved to a different gap cover network, or your current fund no longer has an agreement with them, it's worth reviewing whether a different fund covers them.
How to Switch: Step by Step
1
Compare policies and identify the one you want to move to. Confirm it matches or exceeds your current level for services you care about.
2
Join the new fund online. Notify them you're switching — provide your current fund name, membership number, and cover level so they can honour portability.
3
Set a start date that aligns with your current payment cycle to avoid double premiums.
4
Wait for your new policy to be confirmed and active before cancelling the old one. Never cancel first.
5
Cancel your old fund in writing. Keep a copy. Request a clearance certificate confirming your covered period and served waiting periods.
Our agents do this for you
We find the right fund, set up the new policy, and manage the switch on your behalf — including requesting your clearance certificate and making sure no waiting periods are lost. At no cost to you.
Common Mistakes to Avoid
Cancelling old fund before new one starts
Even 1 day can affect portability. Keep overlap rather than gaps.
Switching to lower cover without realising it
Two "Silver" policies aren't identical — check clinical categories and restrictions, not just the tier name.
Forgetting to re-nominate the government rebate
When you switch, re-nominate your rebate tier with the new fund so your premium reduction continues.
Switching while serving a fresh 12-month wait
If you just upgraded and are in the 12-month window, switching resets the new waiting period at the next fund. Serve it first, then switch.