Understanding How the Marketplace Helps You Compare Health Insurance Plans
Published October 28, 2025
For the majority of people, health insurance comparison or switching to a new fund feels like an absolute pain, especially if you are with the same insurers for years and haven’t face any issues. But what many people fail to realise is that the private health system is actually set up to make switching easy and hassle-free.
There are about 15 million Australians with private health insurance, and a significant percentage of those have been on the same policy for ten or more years. That loyalty may be comforting, but it can be expensive, older policies are often closed to new members because they contain old benefits but still trigger annual premium hikes.
In an era where cost-of-living pressures are tightening and healthcare needs are constantly evolving, it’s natural to wonder: is your current health fund still meeting your needs? And more importantly, is now the right time to compare health insurance plans?
The power of portability
Perhaps the most consumer-friendly aspect of the Australian private health insurance system is the principle of portability. It’s part of the Private Health Insurance Act 2007 and ensures that when you change to a new policy of the same or lower level of cover, you don’t need to re-serve your hospital or extras waiting periods.
Suppose you’ve already completed the waiting periods for major joint and dental replacements on your previous policy. When you switch to a comparable or lower-tier policy with another fund, those benefits transfer, so if you do have treatment, you’re covered immediately.
In short, it means that there are no penalties for switching to a new health plan when you can get better value elsewhere.
Why so many Australians stay on outdated cover
A large number of people are still paying for health insurance policies that no longer give them good value. These are policies that are no longer open to new customers but stay active for existing members. Closed products can be problematic for a number of reasons:
- You’re still stung with annual premium hikes, usually every April.
- The benefits and rebates never rise to keep up or may fall
- Extras limits remain stagnant at previous rates even as medical expenses rise.
You may be paying too much for too little
As health insurance comparison broker, we speak to ordinary Australians who feel they are paying too much in premiums and receiving very little in return. Particularly for those on legacy products with Benefits that have been frozen.
Consider extras cover, for instance. You may be on a policy where you get paid out $300 a year for physiotherapy, but you’re paying premiums that increase by 4% or more each year. Meanwhile, new offerings have higher limits or combined family caps for the same or lower premiums.
If you don’t know whether your policy still compares favourably, it’s time to compare it line-by-line.
Comparing health insurance plans and benefits
Changing health funds does more than just save you money. It keeps the whole industry on its toes. When you compare and change your cover:
- You push health funds to release more competitive, higher-value products.
- You send a message to insurers that members are interested in seeing what they get.
- You channel into more equitable pricing and product development overall.
Insurers monitor member retention as a key business performance measure. When you make a transfer application, most funds will call you in a bid to retain your business. And this may be the first time they’ve ever given you a better offer.
To conclude:
Comparing policies from private health insurance comparison sites in Australia can be bit challenging. There are lots of insurers and hundreds of policy combinations out there. That’s where a trusted expert can help. At Utility Market, our advisors take the time to work with you and recommend necessary health fund options that would be much better fit for your needs.
