Guide To No Waiting Period Health Insurance
Key Points
Health funds typically can’t apply new waiting periods when you switch to an equivalent or lower level of hospital coverage than your existing policy and you’ve already completed your waiting periods.
From time to time, health funds may offer to waive certain waiting periods as special promotions for new customers.
The experts at Compare Club may be able to help you find health insurance that suits your needs and budget with no new waiting periods.
Health funds typically apply waiting periods for certain health care services when you take out a health insurance policy or upgrade your existing cover. However, it is possible to find health insurance with no waiting period for some services.
COMPARE & SAVETypical Health Insurance Costs
There are typically three costs associated with no waiting period health insurance:
Premiums: Regular payments you make to your insurance provider on a monthly, quarterly, or annual basis.
Excess: This is the amount you agree to pay out-of-pocket when you go to hospital before your insurance coverage starts.
Gap payments: The difference between the cost of a private in-patient medical service and the amount covered by your insurance and Medicare.
No waiting period health insurance: What is covered by Medicare?
While Medicare covers a broad range of hospital in-patient medical services, it may not cover the entire fee your doctor charges. Private health insurance can help cover the cost of this gap.
Medicare sets out how much it will pay towards each specific medical service in the Medicare Benefits Schedule (MBS). The amount Medicare will pay for private in-patient services is 75% of the MBS fee.
Private Health Insurance Benefits
Some health funds may waive some waiting periods for new customers, which means you may be covered from the moment you sign up for the policy.
Other benefits of private health insurance include:
Choose your own doctor or hospital
Shorter waiting times
Choice of treatment options
Private hospital accommodation
Standard Waiting Periods For Health Cover
When you take out private health insurance or increase the level of your existing cover, your health fund may apply waiting periods.
The government sets maximum waiting periods for different hospital services. These include:
12 months for pre-existing conditions
12 months for pregnancy and birth-related services
2 months for psychiatric care, rehabilitation or palliative care
2 months for all other services
Your health fund can also apply any waiting period for extras cover.
However, it is sometimes possible to skip some of the usual waiting periods with no waiting period health insurance. Some health funds offer health insurance with no waiting period for some services as special promotions for new customers.
And if you switch to a policy with an equivalent or lower coverage level as your existing policy, your new insurer usually can’t apply new waiting periods, provided you’ve completed your waiting periods with your existing insurer.
Health Insurance Costs Between States
Health cover costs can vary between states.
For example, Compare Club found that people in Victoria, New South Wales and Queensland typically pay more for health insurance than the national average. On the other hand, health cover premiums in Western Australia, South Australia and Tasmania were found to be less than the national average.
| QLD | VIC | NSW | SA | WA | TAS |
|---|---|---|---|---|---|---|
Couples (50+) | $439.20 | $458.80 | $424.60 | $409.28 | $373.64 | $413.03 |
Singles (older) | $219.61 | $229.40 | $229.40 | $204.64 | $186.82 | $206.50 |
Key Terms
Policy: The agreement between an individual and an insurance provider that outlines the terms and conditions of the health insurance coverage.
Waiting periods: The period of time during which policyholders must wait after purchasing or upgrading their health insurance before they can access certain benefits or services.
Coverage level: The extent of protection and benefits provided by a particular insurance policy.
Medicare Benefits Schedule (MBS): A list of medical services and procedures subsidised by the Australian government through the Medicare system.
Frequently Asked Questions
Which health insurance has no waiting period?
If you switch to a new insurer with an equivalent or lower level of coverage than your existing policy, your new insurer usually can’t apply new waiting periods that you’ve already served. Likewise, some health funds may offer to waive certain waiting periods for new customers from time to time as special promotions.
Can I get optical health insurance with no waiting period?
Yes. While most health funds apply waiting periods for extras coverage – including optical – it is possible to find optical health insurance with no waiting period from time to time. As above, switching to a new extras policy with an equivalent or lower level of coverage than your existing policy could mean that you don’t have to serve another waiting period for optical insurance. Or Compare Club may be able to connect you with no-waiting-period promotions with participating health funds.
Can you get dental health insurance with no waiting period?
Yes. Dental health insurance is covered under many extras policies. The above no-waiting-period conditions also apply to dental insurance from time to time.
Can you get health insurance for IVF with no waiting period?
It is quite rare for insurers to offer IVF and private health insurance for pregnancy with no waiting period in Australia. Private health insurance policies typically have a 12-month waiting period for pregnancy-related services. However, as with other types of health insurance, if you switch to a new insurer with an equivalent or lower level of coverage than your existing policy, your new insurer usually can’t apply waiting periods you’ve already served.
Can you get private health insurance with no waiting period for pre-existing conditions in Australia?
Under the Private Health Insurance Act 2007, a health insurer may impose a 12 month waiting period on benefits for hospital treatment for pre-existing conditions. While it’s rare for health funds to waive pre-existing condition waiting periods for new or upgrading customers, you shouldn’t have to serve a waiting period again if you’re switching to a new policy or insurer with an equivalent or lower level of coverage.
Additional resources
Find out more about the costs associated with specialist medical services with Medical Costs Finder.
Check the scheduled fee for medical services covered by Medicare on the Medicare Benefits Schedule (MBS).
Sources
Waiting periods and exemptions, Australian Government Department of Health and Aged Care
The Australian state paying the highest health insurance premiums, YourLifeChoices
What is the Waiting Period for Pre-Existing Conditions?, Commonwealth Ombudsman
*Compare Club compares selected products from a panel of trusted insurers. We do not compare all products in the market. This guide is opinion only and should not be taken as medical or financial advice. Check with a financial professional before making any decisions.
