Plenty of deals from various 3rd party companies such as iselect, comparethemarket etc offer cashback when switching providers, with providers waiving the usual waiting period if it has been served with your current provider already.
Is there any risk to jumping between providers in this case?
yes thats true. you use 200/500 limit and switch to hbf with same 500 limit. still gives you 300 to spend which is no different that what you would get with medibank if you stayed. You will also get $300 from iselect once you switch and stay with hbf for 3 months
I'd be careful about the 'waiving the usual waiting period' part. I've done this and no one will give you a straight answer about whether your waiting periods will be carried over, or what they define 'equivalent cover' as.
However, if you're not too fussed about potentially either having to serve the waiting period again or bugging them for claims (the latter of which I ended up doing), then yeah, definitely doable.
Yeah good point. Something to ask more carefully and if they refuse cancel in cooling off period.
what about if downgrade.
for example previously got $500 limit, used up to $500
then switch to other provider into lower limit product ie $100 limit
they wont ask me to pay back, right?
Doubt it. What would they do if you cancelled your policy completely?
No, they won't ask you to pay it back. But you won't be able to use any more for the rest of the year, and if you have anything else that is of a lower level of cover, you'll need to serve waiting periods again.
Unless you switch to a provider who has a no-waiting-period promotion. (Like Frank..) In which case you still won't be able to use any more for the rest of the year, but if you have anything you haven't used, or anything of a higher level with the waiting period promo waived, you can use that. (E.g. You've used 500 dental, new plan gives 200 dental. Can't use any dental. You've used 100 optical, new plan gives 200 optical. You can use the remainder optical.)
Or at least, that's how it's supposed to work.
Say you get $200 of eye care with medibank. If you use it up then switch to hbf, I'm pretty sure it doesn't reset.