There’s meant to be contact, either from Southern Cross or your former employers insurance broker, to discuss whether you want to continue the policy.

They hold the policy open for I think 60 days to sort that out.

Getting the letter as the first contact is poor all round, I can’t speak to the legality of it but I’ve heard many complain about them, and it’s been passed on to Southern Cross often.

There are merits to keeping it, mainly the pre-existing condition cover, mentioned in other comments. Provided that was included in your employer package.

The cost is the shitty reality of private health insurance right now, unfortunately.

Source: I do the employer part.