Lifetime Health Cover (LHC) is an Australian government initiative
that is designed to encourage people to take out and maintain
private hospital insurance earlier in life.
How it works
If you don’t have hospital cover by 1 July following your 31st birthday, you’ll pay a 2% loading on your share of the hospital component of the premium for each year you’ve been without hospital cover.
The maximum loading cannot go above 70%.
The LHC loading may also be applied to your hospital cover if you stop your hospital cover after your 31st birthday for any period of time if those days aren’t considered ‘permitted days without hospital cover’.
The good news is once you have paid the LHC continuously for 10 years, the loading is removed and your premium will reduce but you’ll need to you retain your hospital cover.
The Australian Government Rebate (AGR) is not applied to the LHC loading component of your hospital cover premium (if applicable).
We'll send you an annual Lifetime Health Cover (LHC) statement
ahm is required to send a statement to the principal member on the policy outlining the loading(s) that apply to your policy (if any), at least once a year. This is the case even if the loadings apply to your partner.
Find out more about LHC at privatehealth.gov.au