April Health Insurance Price Rise: Is It Time to Review Your Policy?
Published August 21, 2026
Contrary to popular belief, private health insurance in Australia is much more flexible than many might think. If you are facing a private health insurance price rise, there are no lock-in agreements, and you are perfectly entitled to evaluate your options and make any changes you feel fit without incurring additional financial penalties, even if you have prepaid your coverage.
The following information should provide you with an idea of what to expect when you decide to make a switch after the cost increase and why it is never too late to get better coverage.
There are no lock-in contracts with private health insurance
Unlike your mobile, electricity or Internet subscription, private health insurance does not offer you a lock-in agreement of any kind. That means you can choose to leave your provider whenever you want, for whatever reason you choose.
No exit fee or penalty will be charged from you, and you do not need to wait until the expiration of your contract to make a change.
Actually, one of the best things that you can do particularly if there has been a price increase – is to consider comparing your existing policy against other available options in the market. You could find that a similar amount of cover can be obtained for less money, or even better cover and inclusions for the same cost.
If you have prepaid, you will receive a refund.
Many people in Australia arrange to pay their health insurance premiums on a monthly, quarterly or even yearly basis in order to save money through discounts. However, if you have pre-paid for your cover beyond 1 April, then that does not mean you will lose the money if you choose to switch to another fund. Your health fund is obliged to give you a refund of any premiums paid up until the start of your new cover.
You won’t have to serve new waiting periods on a new cover
There is a popular myth and one of the reasons why most individuals shy away from changing health insurance providers which is the belief of having to serve new waiting periods once again on the new insurance policy. Not true though!
As per Australian health insurance legislation, any waiting periods that you may have served before must be honored by the new health insurance company – provided you switch to either the same or lower levels of cover.
It basically means that once you have served waiting periods on:
- Hospitalization.
- Pregnancy and childbirth.
- Dental treatment.
- Additional covers such as Optical and Physiotherapy.
You would not have to serve new waiting periods in case of switching. However, in case you upgrade your cover to include services that you were not previously covered for, the waiting period would apply to those additional services alone.
Reasons why the change is still worth it after 1 April
Too many people hurry in March to look at their policy, in an attempt to prevent the automatic premium rise that occurs on 1 April. However, if you have not managed to do this, you should not worry because you are able to:
Secure yourself against future premiums: The health funds don’t increase their prices only in April; there can be changes all through the year, especially regarding individual policies.
Benefit from incentives of becoming a member: It is common practice for the health funds to offer some benefits in order to acquire more members, and such benefits are offered through the whole year.
Save money on your current policy: If you have paid too much for unused extras, it might be a good time to get rid of them and make your cover more relevant.
How to Compare Policies with Confidence
Changing doesn’t need to be a pain in the neck. Here is how to remove the guesswork from choosing among the policies you have available:
1. Use a broker, not a commercial comparison site
Commercial comparison sites do not give you access to the whole market and will typically show you only those policies which they are paid to show. You can rely on a health insurance broker or an expert team of advisers such as the one at Fair Health Care Alliance to do the comparison and explain it to you.
2. Consider funds that offer great benefits, not just low premiums
Low premium is not necessarily an indicator of good value. Consider:
- Benefit payout ratios.
- Customer service satisfaction ratios.
- Hospitals and provider’s network.
3. See what extras they provide
Many health funds offer extras that might provide additional value to your policy without increasing its premium cost:
- Health coaching.
- Mental health support.
- Wellness discounts.
- Gym membership.
- Loyalty rewards.
Conclusion
Missing the March window doesn’t mean you’re stuck paying more for a policy that’s no longer serving you. Don’t wait another 12 months. If your premiums went up and your policy no longer gives you the value it once did, now’s the perfect time to see what else is out there.
It’s never too late to prioritise better cover by comparing health insurance.
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