LHC is an Australian Government initiative designed to encourage people to take out and maintain private hospital cover 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 exceed 70%.
The 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 Lifetime Health Cover Loading 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 on private health insurance is not applied to the Lifetime Health Cover (LHC) loading component of your hospital cover premium (if applicable).