Churning Health Insurance - Increase to The Most Expensive Premium during Free Period, Then Downgrade after

We recently churned to Medibank Private for the family. I realised that we picked a cover which isn't all that generous in terms of claims for extras.

So I hopped on to live chat to ask them - in order to get the 6 weeks free, do we need to pay 4 weeks at the higher premium cost, or is it just paying for 4 weeks at any premium amount. The live chat agent told me that it didn't matter what premium we had before the 6 free weeks, we could upgrade or downgrade at any time.

If this is correct, wouldn't the best plan of attack be to join (for example) Medibank Private with a modest insurance plan, increase the coverage just before the free weeks, then downgrade just after the free weeks expire?

It seems a little bit too good to be true, so I'm wondering if I'm missing anything here.

Comments

  • What would you want to claim from the higher-tier plans, and would the waiting period apply? I imagine the waiting periods are designed to curb that sort of switching (and the 2/6 month waivers with signups probably won't be applicable if you switch to a higher plan during membership).

  • If this is correct, wouldn't the best plan of attack be to join (for example) Medibank Private with a modest insurance plan, increase the coverage just before the free weeks, then downgrade just after the free weeks expire?

    Sure, better cross your fingers that you suddenly need to see four specialists, get a hip replacement, a heart bypass, neurosurgery, and a prosthetic leg during those 6 free weeks to make the most of the deal.

    • +1

      in terms of claims for extras

      I think they're talking about cheap remedial massages and free glasses, more than a hip replacement

      • Why not both?

  • +1

    find it hard to believe the largest health insurer in aus would not shut down any means where the customer comes out ahead

  • +1

    The live chat agent told me that it didn't matter what premium we had before the 6 free weeks, we could upgrade or downgrade at any time.

    https://www.medibank.com.au/health-insurance/c/velocity/
    6 weeks free: Must maintain direct debit and hold the same eligible level of cover or above for 91 consecutive days from the policy start date in order to be eligible to get the next 6 weeks free. The 6 weeks free will not be issued if you change to an ineligible cover, terminate or suspend your cover, or where payments are in arrears during the 91 consecutive day period.

    If this is correct, wouldn't the best plan of attack be to join (for example) Medibank Private with a modest insurance plan, increase the coverage just before the free weeks, then downgrade just after the free weeks expire?

    So if you join at Bronze and upgrade to Gold, IMO you will only be eligible for Bronze in the free period. Agent is technically correct that you can upgrade/downgrade but T&C will be final decision

    • -1

      Thanks for that. You've done the homework, really appreciate it!

      I've found that the live chat agents can tell you different stories each time so this makes sense

      • You've done the homework

        It's called being diligent and reading the relevant terms and conditions.

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