OK, so you and your health fund have grown apart. It happens.
Your needs have changed. Or maybe they just don’t get you any more.
Either way, you’ve decided it’s time to put them on the train to Splitsville.
But before you end your relationship with health insurance for good, it’s worth seeing if another fund could offer you better value, especially as cancelling your health insurance can come with some pretty serious consequences.
It’s understandable why people cancel their health cover. Rising premiums, hidden gap fees, and poor customer service can all contribute to a sense you’d be better off elsewhere.
But there’s a few good reasons to consider switching instead of ditching your cover.
For starters, you’ll have to rely on public waiting lists for elective surgery. In some states, the average wait time is almost a year**.
Then there’s dental treatment, which isn’t covered by Medicare and can seriously drain your bank balance.
And you can say goodbye to getting cash back on extras like optometry and physio.
Oh, and if you decide to rejoin your fund in the future, you may have to serve new waiting periods in order to use your cover.
Switch and save on taxes and premiums
Cancelling health cover could cost you at tax time.
If you earn more than $90,000 per year (or $180,000 for families) and don’t have eligible hospital insurance, you may need to pay the Medicare Levy Surcharge.
That could be as high as 1.5 per cent of your annual taxable income.
And if you’re over 31, Lifetime Health Cover loading will kick back in after a period of time without cover.
That can be an extra 2 per cent of your hospital cover premium for every year you don’t hold that cover.
The good news? Health Insurance Comparison can help you hang on to your cover, while finding you a better deal.
Last year we saved people an average of $312 when they compared and switched with us*. Let’s see how much we can save you.
This article is opinion only and should not be taken as medical or financial advice. Check with a financial professional before making any decisions.
References: *Based on 25,311 customers in 2020, **Private Health Insurance Ombudsman