My Experience of Churning Health Insurance

Thought I’d share a small observation for anyone who, like me, stayed loyal to one insurer for a very long time because we sometimes do not look too deeply on expenses after everything that goes in life.

I was with Medibank for more than 22 years straight, most of those years on couples cover. I never really thought much about it and just kept auto-renewing every year.

Late last year I decided to experiment with switching insurers when promotions appeared, just to see how it worked.

Here is what happened.

Bupa

  • Joined: 27 Oct 2025
  • Premiums paid: $1,096.94
  • Promotion received: ~$700 Everyday Rewards
  • Net cost: $396.94

Medibank

  • Joined: 10 Feb 2026
  • Payment: $521.13
  • Includes: 42 paid days + 42 free days
  • Plus: 30,000 Live Better points (~$200) to be used to extend cover by ~16 days

Coverage runs roughly 10 Feb → ~21 May 2026.

Total coverage period:
27 Oct 2025 → ~21 May 2026 (about 207 days)

Total cash paid:
$396.94 + $521.13 = $918.07

That works out to roughly:

  • $62 per fortnight
  • ~$4.40 per day

For comparison, if I had simply stayed with Medibank at normal premiums for that same period, the cost would have been roughly $2,500+.

So the switching promotions reduced the effective cost by about $1,600+ over ~7 months.

Not posting this to brag – honestly I just never realised how much I was leaving on the table by staying with one insurer for decades. Thought the numbers might help someone else who is curious about how these switching deals actually work in practice. I hope it might help someone to take the initiative to do their own research to start churning.

Comments

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  • +14

    Private health cover sure is a rip off.

    • Yes, a government mandated rip off,.
      If your income is over $101k it is just like an additional tax.

  • +4

    Congratulations on the savings!

    I have said it time and time again that churning through even the most common 'pay 1 month, get 6 weeks free' promotions achieves savings of approximately 58%.

  • +1

    Was that for top extras and top hospital (I guess they call it gold don’t they).
    Also, what’s invoked to churn? Is it a hassle or easy like a mobile phone ?

      • Not exactly straight through processing like a SIM card haha cheers for this

        • +2

          Usually (always?) the new fund will handle most of it like notifying the old fund, etc. I should have just said it's about as simple as changing phone provider.

    • +1

      Technically all you have to do is find your new provider and let the new provider know when you want to start. The new provider does all the work for you.

      There is a hidden cost. The time needed to find a better deal is not small. I am always using AI to compare & calculate the cost between current and prospective new provider. Sometimes, you have to consider the free weeks, cashback, gift cards, or other points in calculation and make a better judgements. If one is willing to put that time, the cost savings is there for anyone to take.

      • The time taken to understand the market is high at first.

        But once you've been through the process once, subsequent rounds are pretty quick.

        There are only so many promotions in market at any point in time and if you set a OzBargain keyword alert for "health insurance" you'll pretty much get a regular feed of updates.

        Also, due to the cooldowns (i.e. you won't get signup bonuses switching from NIB to many of their reseller brands such as Qantas, AAMI etc), you will pretty much end up on a rotation between the 5 or so brands that have promotions in market.

        I went through pretty much the same journey as OP. Stayed with NIB for over 20 years, finally joined the churn game and have been through 4 other providers in the past 12 months. That has given me 12 weeks free, $100 gift card, and almost 60k QFF points. Overall I paid way less than what I had been paying NIB, whilst getting more… and I didn't even run the optimal strategy, I just went with whatever was available as soon as my previous promo ended.

        It was mentioned in another thread that even if you don't want to play the churn game you should at least call your provider once a year and ask them for 6 free weeks.

      • -1

        There is a hidden cost. The time needed to find a better deal is not small.

        I disagree with this. It's an hour at most from search to sign-up.

        I am always using AI to compare & calculate the cost between current and prospective new provider.

        I never use AI for this activity—and it often gets it wrong.

        I find the relevant discount and churn—very simple. I would never engage in, nor recommend, churning where the search cost is excessive. You have described an excessive search cost.

        The biggest 'hidden cost', in my opinion, is switching to either Medibank, Bupa, or NIB (or related brands), all of which have atrocious and timewasting processes and customer service.

  • +1

    How have people gone churning while actively managing claims?

    After decades of getting absolutely zero from private health, I'm at an age and have kids to the point where we are actually starting to make claims.

    Presumably changing health insurance mid-claim is a cluster, so you would want to let any claims run their course.

    One other PHI "hack" that I've discovered is around optical - Medibank lets you claim 2 pairs of glasses from supersavers with no gap, including sunnies. Say no to their BS upsells and it is completely gap free. Extras cover resets at end of year. So sign up to extras in December, get a pair of glasses, wait till January, get another pair of glasses, then cancel the extras.

    • +2

      Presumably changing health insurance mid-claim

      What do you mean by 'mid-claim'?

      • If on Day 1 you are with Insurer A and you have a service delivered that day, you claim from Insurer A.
      • If on Day 2 you are with Insurer B and you have a service delivered that day, you claim from Insurer B.

      You are overthinking this.

  • +1

    Yep now that the credit cards got nerfed with 24-month cooldown periods we're onto the private health funds.

    It's always nice to reduce the amount of tax paid

  • I'm only on extras cover for my provider. Would you think churning would also work for me?

  • Can you keep on going back to Bupa and Medibank repeatedly? Will they reject you?

    • +1

      I think it would be hard for any health fund to reject customers.

      The most they could do is say the signup bonuses are not available if you've been a customer in the last N months/years, but to hard reject a customer would create controversy as it would be a slippery slope to health funds simply rejecting customers that are likely expensive to insure.

      That would defeat the whole purpose of private health insurance.

    • +1

      I went ahm -> bupa -> mbp -> ahm -> mbp -> ahm -> frank -> mbp -> ? probably back to bupa and then back to ahm

    • I went from Medibank to Bupa to Medibank. No issue so far

    • Will they reject you?

      On what basis?

  • Sounds like me in that I've been a long time customer of one provider… my only fear is having to re-serve waiting periods, and not being able to claim if something came up. Is this unfounded?

    Did you make any claims during this period of churning between providers?

    • +1

      Is this unfounded?

      Yes, see The right to change.

      • +1

        Thank you!

    • If u are having a procedure, ensure u provide your current health insurance details to your doctor and hospital as you should. It is their responsibility to sort things out.

  • Thanks for a very insightful post @welcomeUniverseWorld
    I'm in the same boat as you.
    Prior to churning, were you on a grandfathered plan that is no longer available to new members? And did this factor into your thinking?

  • Will paying annually ie upfront before the price rise on 1 April still allow me to get the current eg8 week/10 week promo offers that are available for new customers of combined hospital and extras policies? From my reading, the way the promos work, ie when the free weeks are "credited" is usually after a certain time period has elapsed eg X weeks after 90 days membership, + X weeks after 1x months membership etc. Its not clear how this promo will work for those who pay upfront. I will give the various funds a call during their opening hours but any experience anyone can share would be appreciated

    • Will paying annually ie upfront before the price rise on 1 April

      This thread is about churning and saving; not about staying and overpaying.

  • -4

    ok thanks for your AMA

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