Switching Health Insurance in Australia After the Price Rise: Is It Too Late?
Published January 30, 2026
If you didn’t do anything before 1 April, when pretty much every health fund raised their premiums, you might be wondering: is switching health insurance in Australia now too late?
If I missed the price rise will it be too late?
The truth is, private health insurance in Australia is much more flexible than most people think. There are no contracts, and if you are on a policy that has increased in cost, you are still within your rights to compare and switch providers, even if you have already paid in advance for your premium.
Let’s get to know the essential things about switching after the price hike and also why it is not too late to grab a better value.
There are no lock-in contracts with private health insurance
One thing that’s different about private health insurance is that it doesn’t have a lock-in contract. This means that you are free to switch health funds whenever you want, for whatever reason.
You won’t be charged an exit fee or penalty, and you don’t have to wait until your annual renewal or premium due date to switch.
In fact, one of the best things that you can do is to compare your current health fund with what else is out there in the market. You might be able to find a similar level of cover at a cheaper price, or a better health fund with more inclusions.
There are no lock-in contracts with private health insurance
Unlike your mobile phone, energy, or internet service, private health insurance does not have a lock-in contract. This means that you are free to switch at any time and for any reason.
You will not be charged an exit fee, and you do not have to wait until your next renewal or premium payment date to switch.
In fact, one of the best things that you can do, especially if there has been a price increase, is to compare your current policy with what else is available in the market. You may find a similar level of cover at a cheaper price or a better policy with better inclusions.
If you’ve prepaid, you’ll get a refund
It’s quite common for Aussies to pay their health insurance premiums on a monthly, quarterly, or even annual basis to get a discount. However, if you’ve prepaid your health insurance premiums after 1 April, you won’t lose that money if you decide to switch. Your health insurance fund is required to refund you any prepaid premiums after the date of your new policy’s commencement.
This is another important reason why you shouldn’t feel stuck with your current health insurance fund. You won’t lose the money you’ve paid. Perhaps you’ve prepaid to avoid a price increase or to cut down on admin costs. You won’t be out of pocket when you switch.
Why switching is still a good idea after Price Hike
Far too many people wait until March to check over their policy and try to beat the annual premium price hike, which comes into effect on 1 April. However, if you’ve missed this opportunity, do not worry. You can still:
- Lock in a better deal for the future: Health funds do not just price adjust in April. In fact, price adjustments can occur throughout the year, particularly in regards to individual policy formats.
- Capitalise on sign-up bonuses or incentives: Health funds often offer incentives such as waived waiting periods or free months of membership, and these are usually available well into the year.
- Get your current cover to work harder for you: Perhaps you’ve been overpaying for outdated extras or cover that you no longer use. It’s time to cut the fat and get a policy that better reflects your lifestyle.
Missing the March deadline does not mean you are stuck with a policy that is no longer working for you and is costing you more than it should. Do not wait another year to see what else is out there. Switching health insurance in Australia is easier with Utility Market. Follow us on LinkedIn for trusted insights and updates.
