More Aussies would switch health funds if not for these eight myths

AUSSIES are rushing to join the One Big Switch campaign to get a better health fund deal, but more would be on board if not for these myths.

MORE than 21,000 Australians have now signed on to the One Big Switch (OBS) health insurance campaign seeking a better deal, but experts say more would jump on the bandwagon if not for these common misconceptions.

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Myth 1: I’ll have to re-serve waiting periods

The private health insurance ombudsman says waiting periods are only required when you are adding to or upgrading hospital cover.

“If you switch to a comparable product at a different fund, you shouldn’t serve waiting times again, but double check that the coverage is like for like,” Dr Dwayne Crombie, from Bupa, said.

Myth 2: Shopping around is too hard

An OBS survey of 1000 people who changed funds in the past year revealed 88 per cent found it “easy” or “very easy” and 51 per cent estimated they saved $500 or more.

Myth 3: I have to have hospital cover and extras with the same provider

Finder research found 52 per cent of Australians were unaware they could have two health insurance providers; one for hospital cover and one for extras. Finder spokeswoman Bessie Hassan said to look at these separately when deciding what you really need.

“You might be better off taking out hospital cover with one insurer and extras with another for a policy tailored to your needs,” Ms Hassan said.

Myth 4: If I pay upfront and switch, I will lose the money I paid

Finder also found 45 per cent were unaware they could be refunded unused premiums if they paid upfront and then switched.

Myth 5: I have a pre-existing condition

Health funds cannot charge you more for having a pre-existing condition, provided you were covered for it with your previous fund.

Myth 6: I’m being rewarded for my loyalty

Laura Crowden from iSelect said this myth was costly.

“Health insurers put more effort into attracting new customers than trying to keep existing customers,” she said. “Don’t let loyalty get in the way of better value.”

Myth 7: I won’t save enough to make the hassle worthwhile

“The cost of two policies with the same level of cover from different insurers can vary by as much as $900 a year,” Ms Crowden said.

Myth 8: I’m locked into a contract and will have to pay an exit fee

“Private health insurance is not contracted,” Ms Crowden said. “You are entitled to switch at any time without paying an exit fee.”

To find out more about the Big Health Insurance Switch go to www.onebigswitch.com.au

There is no obligation to take up any offer. This masthead’s publisher News Corp Australia and One Big Switch will earn a commission from any accepted deals. News Corp Australia is a shareholder of One Big Switch.

Kerrie and Gavin Dietz with kids Bailey, 12, Campbell, 9 and Rose, 7, switched funds after copping another premium hike.

Gavin Dietz and his family decided to switch insurers this year after they received a letter from Medibank Private notifying them that their monthly bill would be increased to more than $600 after April 1.

“I just got the letter, I was walking past HCF and I walked in and asked how much it would cost me with them,” Mr Dietz said. “A nice man there took me through everything that they could do.”

Mr Dietz realised that the new fund would save his family more than $100 a month.

“I like HCF because it’s not for profit,” he said. “They threw in a month for free for moving over.

“We would never usually change, but there’s no loyalty. You never hear from them until you get the letter about paying more. I was surprised that we didn’t get a call from Medibank saying ‘don’t go’.”

Mr Dietz expected the process to be harder but found it to be easy in the end, with his new fund taking care of the hassle for him. He said that as long as the family was treated well, they would stick with their fund.

“My nature is to stay for a while,” he said. “We’re loyal if it’s easy and they are helpful.”

To find out more about the Big Health Insurance Switch go to www.onebigswitch.com.au

There is no obligation to take up any offer. This masthead’s publisher News Corp Australia and One Big Switch will earn a commission from any accepted deals. News Corp Australia is a shareholder of One Big Switch.

Originally published as More Aussies would switch health funds if not for these eight myths