When entering a de facto relationship, many Australians wonder if their health insurance will be affected. The simple answer is no; being in a de facto relationship does not void your health insurance.
However, your relationship status can influence how your policy applies, especially if you want to include your partner on your plan or access shared benefits.
Today, we’ll answer common questions about health insurance and de facto relationships to help you understand your rights and responsibilities.
I. Does Being in a De Facto Relationship Impact Health Insurance?
Being in a de facto relationship generally does not void your health insurance policy. However, it may change how your policy is structured. Health insurance policies in Australia often cater to different living arrangements, such as single, couple, or family coverage.
If you and your partner live together and share finances, it might make sense to switch to a couples’ policy.
A de facto relationship, under Australian law, is treated similarly to marriage for legal purposes, which means health insurers often apply the same rules to married and de facto couples. While your policy remains valid, it’s important to check whether it is optimised for your current situation.
Also Read: Does De Facto Count as Spouse?
II. Will My Health Insurance Policy Automatically Cover My De Facto Partner?
No, your health insurance policy will not automatically cover your de facto partner. Most health insurance providers require you to update your policy if you want to add your partner. Even if you’re in a committed relationship, your partner cannot access your benefits unless their name is listed on the policy.
To include your de facto partner, you may need to upgrade from a single policy to a couples’ policy. This ensures both of you have access to the same level of health coverage. Keep in mind that premiums for couples’ policies may differ from single plans, so review the costs and benefits before making changes.
III. Do I Need to Notify My Health Insurer If I Enter a De Facto Relationship?
Yes, it’s a good idea to notify your health insurer if your relationship status changes. While being in a de facto relationship doesn’t automatically void your policy, updating your details ensures that your insurer can provide you with the most suitable coverage.
If you choose to stay on a single policy, there’s no immediate obligation to inform your insurer. However, if you plan to share a policy with your partner, you’ll need to contact your insurer to adjust your coverage.
Not notifying your insurer could result in your partner being unable to claim benefits, leading to unexpected costs.
IV. Can Being in a De Facto Relationship Affect My Eligibility for Certain Health Insurance Benefits?
Yes, your eligibility for certain health insurance benefits can change depending on your relationship status and policy type. For example, if you move from a single policy to a couples’ policy, the benefits available to both you and your partner might differ slightly.
Here are some common scenarios:
- Combined Extras Limits: Couples’ policies often combine benefits for services like dental, physiotherapy, or optical. While this can be convenient, it might also limit the total claims you and your partner can make.
- Lifetime Health Cover Loading: If your de facto partner has not maintained continuous private health insurance, they may incur a loading fee when added to your policy.
- Tax Implications: Sharing a couples’ policy might influence your eligibility for the Australian Government’s Private Health Insurance Rebate or Medicare Levy Surcharge exemptions.
Always review the terms of your new or updated policy to understand how these factors may apply.
V. What Happens to My Health Insurance If My De Facto Relationship Ends?
If your de facto relationship ends, you will need to make changes to your health insurance. For couples’ policies, this typically means splitting the coverage into individual plans. Contact your insurer as soon as possible to ensure that you and your former partner have uninterrupted coverage.
The process is usually straightforward, but here are some points to consider:
Claiming History: Any benefits claimed by your partner while on the couples’ policy won’t affect your new individual policy.
Premium Adjustments: Switching back to a single policy may lower your premium, depending on the coverage level.
Waiting Periods: If your policy changes significantly, you may need to serve waiting periods for certain benefits, even if you had continuous coverage.
Remember, health insurers are required to treat de facto couples the same as married couples, so the same rules apply to separating spouses.
Also Read: Cohabitation to Court: De Facto Rights
Your Health, Your Choice
Understanding how a de facto relationship impacts your health insurance ensures you make informed decisions for yourself and your partner. While your policy won’t be voided, updating it can save you money and provide better coverage.
If you’re unsure about your next steps, Justice Family Lawyers can guide you through your legal and financial rights in a de facto relationship. Contact us today for expert advice tailored to your needs.
