Switching health insurance: what you need to know
When it comes to your health insurance, things with your current fund might not be working out the way you thought they would.
At nib, we consider ourselves your health partner – and whether it’s helping you stay at your healthiest or helping you navigate the health system when you do need to visit hospital, we’ve got your back.
So when you’re ready to make the switch to nib, before you call your current health fund to say ‘it’s not you, it’s me’, read up on some of the biggest questions you might have when it comes to changing private health insurers.
Related: A guide to saving money on your health insurance cover
Can I switch private health insurance funds anytime?
Yes, you have the flexibility to change your health insurance provider at any time. If you've paid any premiums in advance, your previous health fund is normally required to refund any amount paid past your cancellation date when you switch to a new health fund.
When is the best time to switch health insurance?
In some cases it can be beneficial switch your health insurance before the annual premium increase, which generally happens on 1 April each year. This is due to the fact that many health insurance providers allow you to pre-pay your premiums for the year.
One of the key benefits of pre-paying your premium for the year is being able to lock in your current premiums before the 1 April increase. The potential savings will depend on the rate at which your new provider is increasing its premiums.
Remember, the goal of making the health insurance switch should always be to secure the best health insurance for your lifestyle. If you need help finding a cover that suits your needs, call us on 13 16 42.
How do I switch health insurance?
Changing your health insurance to a new health insurance provider is typically straightforward, and at nib we'll handle most of the work for you!
Choose your new cover: Start by choosing the right cover for your lifestyle and health needs. Compare health insurance options for Extras, Hospital or combined cover to find cover that best suits your needs. If you need help, call us on 13 16 42.
We do the paperwork: Once you join, we’ll contact your current fund to cancel your membership and request a transfer certificate.
Tie up any loose ends: If you have direct debits set up with your old insurer, ensure to cancel these once your new health cover is in place.
I want to switch to nib, how do I do it?
Private health insurance should be easy, right? So we’ve made choosing the right cover and getting a quote as simple as possible. You can compare health insurance plans and get a quote online in minutes and, once you’re ready to sign up, you can sit back knowing that we’ll contact your previous fund on your behalf.
Do I need to cancel my old cover first?
Not necessarily! At nib, we can take care of this for you, just give us your consent when you join. If you prefer to do it yourself, be sure to join nib within 59 days of leaving your old fund. This way, we can recognise any waiting periods you’ve already served.
What is a transfer certificate?
Under the Private Health Insurance Act, when you switch to nib your previous fund is required to send us a transfer certificate within 14 days. The transfer certificate outlines details of your previous cover, including any waiting periods you’ve served, the type of cover you had and your claims history. You can start claiming on services that you’re eligible for as soon as we receive this certificate.
If I transfer to nib from another fund, do I have to re-serve waiting periods?
If you’re transferring to a policy that has an equivalent or lower level of benefits, you won’t have to re-serve any waiting periods on the services covered with your previous fund. We’ll also recognise partially served waiting periods – so even if you’ve only served three months of a 12-month waiting period, we’ll make sure that the three months still count when you transfer to us. You'll need to serve a waiting period for any new types of cover or higher benefit limits you add to your policy.
For more information, check out our article What’s a waiting period and why do we have them?
What happens to my annual limits if I transfer?
The benefits you have claimed with your previous fund this year will be deducted from your new nib policy. We work by calendar year at nib, so if you’ve got an annual limit of $1,000 for major dental treatment and you’ve already claimed $400 this calendar year, you’ll still have $600 remaining.
How does my excess work?
Already made a hospital claim this calendar year with your previous fund? Don’t worry; if you’ve switched to a policy that has the same level of excess (or a lower excess) and you’re readmitted to hospital this year, you won’t have to pay your excess again with nib.
If you’ve transferred to a policy with a lower level of excess, your new excess amount will kick in two months following your transfer to nib.
The exception to this is if you’re admitted to hospital for a pre-existing condition within your first 12 months with nib after switching, then your previous higher excess will be applicable.
At nib, we offer our members a range of options when it comes to their excess. As an nib member, you can choose between a $500 or $750 excess for singles, and $1,000 or $1,500 for couples or families. This means you have the ability to opt for a higher level of excess in return for a lower premium.
To find out more about nib’s excess options, head to our article Excess changes: How to reduce the cost of your premium.
Can I switch health funds while pregnant?
Absolutely! Continuity rules mean you can transfer your cover to nib (or any fund) as long as your payments are up-to-date. Just ensure your new policy includes pregnancy and birth services so you’re covered for what matters most. If you’re unsure, our team is here to help, just give us a call on 13 16 42.
If I transfer, will it affect my Lifetime Health Cover (LHC)?
If you’re transferring your Hospital Cover to nib you can rest assured that your Lifetime Health Cover loading won’t be affected so long as you haven’t taken a break that will exceed your ‘absent days’ between transferring health covers.
If you’ve got LHC loading, we'll recognise the years you’ve had private Hospital cover for. This means we'll know when you have hit the magic 10-year mark to remove your loading and reduce your premiums.
I’ve paid my cover in advance with my old fund, will I lose this?
If you’ve paid your private health premiums in advance and decide to transfer your policy to nib, your old health fund should refund you the excess money you’ve paid.
What should I do about my direct debit payments with my other fund?
The best thing to do is to cancel any direct debit arrangements you have previously made with your financial institution and then leave the rest to us! nib will contact your previous health fund to advise them that you have decided to switch and to request your transfer certificate.
If you set up automatic direct debit payments from your bank, building society or credit union cheque or savings account, you might be eligible for a discount of up to 4% on your nib premium1.
Keen to learn about more ways you can save? Check out our article: A guide to saving money on your health insurance.
How can I claim with nib?
We believe that claiming your benefits with nib should be simple. When you need to make a claim, you can submit it using the nib app or via your member account. Learn how to make a claim online.
I've switched to nib, when does my new cover start?
When you switch to nib, your cover and waiting periods start from the date you nominate. If you've already served your waiting periods you can begin to claim for services received from the date your cover started as long as we have received your transfer certificate from your previous health fund.
What if I change my mind?
We get it, decisions like this can feel big. That’s why nib offers a 30-day cooling-off period. During this time, you can review your cover and make adjustments (or cancel altogether) as long as you haven’t made any claims. It’s all about giving you peace of mind.
I want to stay with nib but need to change my cover
That's great to hear! The first step is choosing the right level of cover to suit your needs. Once you've found the right cover, you can change your policy online in your member account, via the nib App, or contact us and we'll talk you through the process. Not already a member? Explore the benefits of switching your health insurance to nib and get a quote online in minutes:
Save on Extras: With thousands of providers in our nib First Choice network, you’ll save on dental, optical and physio visits with agreed rates and No Gap on selected offers and services.
Unlock rewards: Enjoy discounts on hundreds of brands with nib Rewards. Plus, earn points as you shop to save even more.
Access convenient health services: Get health support where and when you need it with GP telehealth and prescription delivery through our partner, hub.health.
Reduce your hospital expenses: We have special agreements with providers in select locations across Australia to reduce your out of pocket costs when you go to hospital.
Ready to find health cover that suits your lifestyle? Compare Extras, Hospital and combined policies or contact us for a chat.
1Discount not available on Ambulance Only cover.