I switch policies sometimes once or twice a year when they offer freebies, i.e. 6 weeks free and I weigh up the cost of going to a more expensive insurer into this.
I usually go to a better insurance company when I need to go to the dentist to get a free check-up and more back if I need x-rays or fillings.
Does anyone else do this and have any strategy or experience?
No. Stopped my PHI.
CBF
HBF HCF GMHBA
I've thought about it, but I'm also interested in what it actually covers if I needed an admission. I've got cover that covers a lot, compared to some. I wouldn't want to need something more complex and be caught out because I was churning. The main point of health insurance for me is if something unexpected comes up that I'd have to wait for in the public system, or if I want to choose my surgeon/specialist.
It's a standardised product. How will you be caught out? (Maybe there might be an extras category that is covered by one fund but not another - but that isn't going to happen under hospital cover of the same Gold, Silver, Bronze categories.)
ahh.. yes you're right, I'd forgotten about this coming in. I guess I could churn and stay at the same level, might not be a terrible idea.
It's the best idea!
If you're lucky enough to be able to churn to repeated "1 month then 6 weeks free offers", you will reduce your costs by 60%.
I'm kicking myself for not starting this before 2020.
I have churned on the last day of each promo period.
Love it!
Yes, I do this. In the last financial year I had 6 health funds and reduced my annual costs by 58%.
The industry is in a death spiral and I'm not going to contribute my hard earned $ to keep it propped up.
amazing
An important aspect of the churn strategy is, after 1 July each year, to churn to a fund that resets its extras benefits on 1 July.
This means you can again claim for extras categories you may have exhausted with the previous fund, eg, optical.
I buy two new pairs of glasses per year using this method.
Of course that means that after 1 January you should then churn to a fund with 1 January extras benefit resets.
It truly is a beautiful merry-go-round.
And of course, churn after 1 April pricing review to avoid paying loyalty tax
Sure, but with the churn strategy you would be churning to the next best offer anyway.
A bit late to this but what insurance providers do you churn with for July and January reset if you still do this?
Thanks
Cheers for this!
Do waiting periods not restart each time you change funds?
Not if you are transferring from another provider
Normally serve waiting period for extra coverage.
E.g. old plan routine dental has $500 limit. New plan has $800 limit. You serve the waiting period for that extra $300 limit.
I would if i could however i find the costs are so variable so don't really bother.
And FWIW i only have it to minimise tax.
If i could have a choice i definitely wouldn't have it.
The costs might be variable but the savings are significant (up to 60%).
Mine is the lowest i know of ($690) so no really too fussed as its pretty much impossible to get cheaper
Is it worthwhile if you just want basic hospital cover to avoid tax?
That's a decision you have to make.
My main objective is to be covered for tax purposes at the least possible cost.
Breaking that down:
These two are not incompatible.
By undertaking in the churn you can do better at the second element of your goal - "least possible cost".
Are the "up to 60% savings" worth it for you based on your annual costs? Only you can decide the value of this.
I take out basic cover cause it's cheaper than paying extra tax. I don't even live in Australia (though I am a resident for tax purposes), so I alternate between Qantas and BUPA just to get the additional QF or VA sign-on points. Been doing this for years.
I also do the same with other types of insurance. Set and forget is anathema to me as it should for all OzBers.
No.