Your Ignorance of This Obscure Law on Waiting Periods May be Costing You Hundreds on Your Health Insurance

An often misunderstood law from 2007 that protects you from re-serving waiting periods could be costing you hundreds every year. Health funds are benefiting from the common belief that it’s difficult to switch insurance policies—and you’ll be stuck serving out long waiting periods if you do.

This is why it’s important that you know your rights under the Private Health Insurance (PHI) Act of 2007. Thousands of loyal Aussies have stuck with outdated, high-cost health insurance policies for way too long, simply because they don’t realise how easy it can be to change policies.

However, this law was designed to protect the consumer, not the health funds. Not only is it easy to switch health funds—health insurers can’t make you serve any new waiting periods on hospital cover if you switch to a new policy without a break in cover, so long as it offers the same or a lower level of cover as your current policy.[C1]

Our experts at Health Insurance Comparison are all Australians, so we’re familiar with the specific healthcare needs Aussies face. We can help you make sense of the PHI Act of 2007, and show you how to use it to your advantage. Ideally, you could save an average of $380.79* without having to re-serve hospital waiting periods.


Here’s How You Do It:

Step 1: Select your current life stage below.
Step 2: Once you select your preferred coverage options, you will have the opportunity to compare quotes from multiple health funds.

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What You Need to Know About the PHI Act and Waiting Periods

1. Health insurers can’t make you serve any extra waiting periods on hospital cover if you switch policies without a break in cover, so long as your new policy offers the same or a lower level of benefits. Even if you switch to a different health fund.[C2]

2. If you increase your benefits, you’re protected by law on the maximum waiting period for hospital treatments. These limits vary from 2–12 months, and in some cases can be waived entirely[C3]

3. Health insurers are allowed to set their own waiting periods if you increase your benefits for extras cover. For example, some funds may have a 2 month waiting period for dental checkups, and 6 months for optical extras. If you want to increase your benefits, our team of experts can help you figure out exactly what you need and what waiting periods are required. [C4] Some health funds might even waive waiting periods entirely when running certain offers, or to attract new customers.[C5]

4. The easiest way to ensure you’re getting the best value for your money is by using our free comparison tool. This will allow you to access your own team of experts for free, so you won’t have to try to figure out how everything works on your own.

In 2018 Our Experts Helped Over Half a Million Aussies Compare Health Insurance Policies

We know how difficult insurance policies can be to understand — and so do the health funds. This is why it’s important to have a team of experts on your side to help you make sense of your policy and the waiting periods that come with switching.

Health Insurance Comparison isn’t just any comparison tool — our team of experts has consistently won the Word of Mouth customer service award for 7 years running by providing value to our customers, with an average savings of $380.79*. See how much you can save by switching, and avoid the wait — it only takes a few minutes of your time.


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Step 1: Select your state below .
Step 2: After answering a few questions, you will have the opportunity to compare quotes in your area and could be eligible for significant savings.

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*Average savings based off 20,400 customers during 2019

This article is opinion only and should not be taken as medical or financial advice. Check with a financial professional before making any decisions.

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