The majority of Illawarra residents with private health insurance should stick with the cover they've got until at least April 1, when sweeping reforms start to take effect.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
That's the word from the nation's leading consumer advocacy group, Choice, which advises people not to switch before that date, unless they're losing cover for something they really need.
"The Australian government is introducing a system of tiers - gold, silver, bronze and basic - which is meant to simplify health insurance," Choice spokesman Jonathan Brown said.
"However it's actually created a lot of confusion. We don't yet know when insurers will convert old policies into the new system, or whether they'll close old policies and move people to new ones.
"So for most Australians it's going to be better to wait until after April 1, because then we'll have more information and be better able to work out where the best deals are."
However, Mr Brown said, those with specific - and imminent - needs should check if those are covered before the changes come into effect.
"For those with particular health needs - for instance if you're starting a family and need pregnancy and birth cover or if it's likely you'll need a hip or knee replacement soon - it's best to check now," he said.
"You don't want to lose that particular cover, or get stuck with a new waiting period."
Dr Rob Gordon, director of the Centre for Health Service Development at the University of Wollongong, also urged people not to "rush any decision" but wait until the impact of the changes on each policy was clear.
"Health insurers have until April 1, 2020 to assign each of their products into one of the four categories," he said. "For this reason, it may not be possible to immediately understand the impact of the changes for each policy."
Under the government's changes, all hospital-based treatments have been organised into 38 categories, with the gold tier covering all of those. The silver tier will cover 26 categories, bronze 18 categories while basic policies will provide minimal cover in a private hospital.
"The aim is to make it simper for consumers to understand the types of services offered under different packages," Dr Gordon said.
"All current policies will be assigned to one of the four categories. In itself, this should not lead to increases in premiums.
"However, it is possible that premiums for some individuals will increase if they are looking to be covered for a particular service that is in a higher level category."
Mr Brown said higher costs were at the forefront of many people's minds - with a recent Choice survey revealing health insurance had overtaken electricity as the main household cost concern.
"One of the biggest concerns is that people will have to shift to the higher tiers to access certain cover," Mr Brown said.
"For instance for diabetics, insulin pumps are now covered under the gold tier only - as are hip and knee replacements and cataracts.
"So a lot of older Australians in particular will lose some of the things they may be currently covered for.
"We don't have all the data yet, but generally under the new system, we believe people will be getting less cover for their money."
The new tiers only apply to hospital cover, not extras. However a range of natural therapies cannot be covered by insurers and will be removed, including homeopathy, naturopathy, Pilates and yoga.
Insurers will be allowed to offer people under 30, discounts of up to 10 per cent on their private health insurance hospital premiums - and they'll be able to retain that discount until they turn 41.
Meantime people living in regional and rural areas can receive travel and accommodation benefits by insurers if they need to travel for special medical or hospital treatment.
People will also be able to increase their excess in exchange for a lower premium, while insurers can also offer 'Plus' policies covering additional treatments in each tier.