How to switch health insurers before June 30

THERE’s a handful of things you need to do before you jump health insurance provider.

Health insurance customers need to ensure they have the most suitable coverage before jumper providers.

ITCHY feet can be an common ailment suffered by health insurance customers in June as they look around to see if they can switch to another provider before the end of financial year arrives.

It’s also the last chance to avoid paying the lifetime health cover loading which is a two per cent charge for each year following your 31st birthday if you don’t have hospital cover.

But before jumping insurer or taking out your first policy, industry experts including Bupa’s managing director Dwayne Crombie say there are plenty of things to consider to ensure you have the best cover for your needs.

Bupa's managing director Dr Dwayne Crombie says there’s lots to consider before taking out health insurance.

“This includes considering whether your cover will match your current lifestyle, budget and health needs — not just going for the lowest price or because there’s some gimmick thrown in for signing up,’’ he says.

“Health insurance is there for your health — you don’t want to reach a situation where you discover that you’re not covered when you need it.’’

Insurance companies will do all the hard switching work if you’re thinking of jumping from one provider to the next.

You can authorise a cancellation of your previous insurance verbally, online or by email and your old fund will send you a clearance certificate that outlines your previous level of cover and waiting periods that you have served.

Continuity of cover is important so make sure you read the fine print on your new policy or ask your new insurer plenty of questions before signing up to a new policy.

One Big Switch spokesman Joel Gibson says switching insurers is a straightforward process but there’s a list of things to check before doing so.

Joel Gibson, Campaign Director of One Big Switch meets with Minister for Health Sussan Ley at Parliament House to discuss health insurance premiums.

“People shouldn’t feel like they need to compare 25,000 health insurance products if they are looking to switch,’’ she says.

“It’s very important what your must-haves are in a policy and what your nice-to-haves are, “ he says. “If you are trying to save some money it might be a good idea to get rid of some nice-to-haves.”

There are tens of thousands of health insurance policies available on the market.

OBS analysis found, for every 1000 people who have switched insurers in the past year, 80 per cent say they found the process easy or very easy.

“People are often really reluctant to switch health insurance because there are so many products to compare but people who have done it say it’s surprisingly easy,’’ she says.

It can also be worthwhile contacting your provider and seeing if they can do a better deal for you before you jump ship, but Gibson says this is “very discretionary so it never hurts to put them on the spot.”

Originally published as How to switch health insurers before June 30