Private Health Insurance Limit Reset Dates

Lspa on 29/10/2018 - 14:34

Question about the dates that limits reset - I previously was with an insurer whose extra limits reset with the calendar year. When I did a switch earlier this year to an insurer whose limits reset mid year, all of my limits reset in their mid year date.

Is there any reason I wouldn't switch again on December 31 to an insurer whose limits reset on 1st Jan so that my limits reset again if say I was close to using up some benefits? Or have I missed how it actually works. just curious!

While I'm here, I'll probably ask the insurer but if anyone knows the answer to this question - if I've waited 7 months out of a 12 months waiting period, and I move to another one, do I have to rewait the full 12, or only another 5?

Thanks.

Health & Beauty Health Insurance Insurance

Comments

  • Tech5 on 29/10/2018 - 14:46
    +1

    The problem is any waiting period. The insurance companies do not need to honor the waiting period of whoever you switched from. That being said, sometimes they do that as a promotion

  • geech on 29/10/2018 - 14:47

    When I've changed providers in the past, they request confirmation from your previous insurer which includes your claim history. This means that they usually base your extras cover on this claims history.

    • spa on 29/10/2018 - 14:51

      Yes that's right they do request and that is what they base your remaining 'limit' off of, however what I'm wondering is whether on the date limits reset, that no longer matters. That seemed to be the case when I switched mid year - I had full limits minus what I'd used with my previous insurer, but when the reset date came I had full amounts for all limits.

      • geech on 29/10/2018 - 14:52

        It's entirely up to the provider as to whether they base your remaining limits on the previous usage for the year, or whether they start again in line with their cycle

  • boomramada on 29/10/2018 - 16:01

    Contact your provider and ask them, they wouldn't bite you over the phone, it depend on provider to provider.

  • spa on 29/10/2018 - 16:04

    I've contacted a few providers now to check.
    Answers to questions were, in summary:

    • Limits reset on the calendar year, no matter when your previous limit reset. The benefits you have used carry over until the reset date.
    • If I've served 8 months out of a 12 month waiting period and I switch, I only have to server the remaining 4 months (and not the full 12 months)

    Seems like a bit of a nice way to get extra limit if you can keep switching between funds with comparable limits - change provider every 6 months.

  • Charity on 29/10/2018 - 19:35

    "Waiting periods" are a greedy scam and shouldn't be tolerated. It is not "insurance" when there are waiting periods, or claim limits for that matter , it is a fund.

    Can you imagine your car insurance telling you to pay and wait 6 or 12 months before it is active? Or that they only cap the repair claims at $10000 or some other arbitrary number to make the company profitable?

    • Tech5 on 29/10/2018 - 19:50

      There are many ways to abuse health funds without waiting periods. For e.g. dental: Sign up to an insurance once you have a quote from a dentist. There problem here is pre-existing conditions that you are buying insurance to cover for.

      You would not have a smashed car, then buy insurance. It would not work as not only do you need a police report, if it was a two party crash, you would have them contradicting you.

      In terms of the cap, I agree. However there are many plans without caps

  • John Kimble on 30/10/2018 - 06:58
    +1

    Trying to game insurance companies? Cute.

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