Lifetime Health Cover (LHC) is a government initiative to encourage people to take out and maintain private hospital insurance before they turn 31.
If you take out hospital or hospital and extras cover before 1 July after your 31st birthday, you can avoid the LHC loading.
If you DON'T have hospital cover by 1 July following your 31st birthday, the LHC loading adds 2% on your hospital premium for each year you’re over the age of 31 without hospital cover. It doesn’t affect the extras part of your premium.
This means, if you take out hospital cover after you turn 31, you’ll pay:
2% LHC loading when you’re 31.
4% LHC loading at 32.
6% at 33 and so on, up to a maximum loading of 70% (when you turn 65).
Visit the government’s website to calculate your LHC loading
If you have to pay the LHC loading
The loading is applied for a maximum of 10 years. Once you have held hospital cover for 10 consecutive years, you stop paying it as long as you retain your hospital cover.
How does LHC loading apply if I need couple or family cover?
For couples and families, the LHC loading is calculated as an average between the two adults. For example, if one person has a 40% loading and the other person has a 10% loading, the loading applied to the couple’s policy is 25%.
Does LHC loading still apply if I switch health funds?
Yes, your LHC loading is on your Transfer certificate and will be applied to you (and/or your partner) on your ahm cover.
We’ll send you an annual Lifetime Health Cover (LHC) statement
We’re 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.
The Australian Government Rebate (AGR) is not applied to the LHC loading component of your hospital cover premium (if applicable). Find out more about LHC loading at privatehealth.gov.au