Lifetime Health Cover (LHC) is an Australian Government initiative designed to encourage you to take out hospital cover earlier in life, and to keep it. It’s added onto your hospital premium if you wait until after you’re 31 to take it out. Each year you delay, your loading increases by 2%, to a max of 70%.
Lifetime Health Cover (LHC) Loading is a key component of Australia's private health insurance system. Introduced by the Australian Government, this initiative aims to encourage people to take out private hospital cover earlier in life and maintain it long-term. Here's what you need to know:
LHC Loading is an additional charge applied to your private hospital insurance premium if you delay taking out cover until after you turn 31. This policy is designed to:
If you're under 31 and have already taken out hospital cover, you're in the clear. The Lifetime Health Cover (LHC) Loading won't affect you as long as you maintain your coverage without significant gaps.
You have until June 30 following your 31st birthday to take out hospital cover and avoid loading. Otherwise, if you want to take out hospital cover later in life, you will pay a 2% LHC loading on top of your premium for every year you are aged over 30.
If you're over 31 and haven't yet purchased hospital cover, health insurers are required by law to apply the LHC Loading to your premium when you join. This loading increases your premium by 2% for each year you're over 30 and remains in place for 10 continuous years.
Let's say you decide to take out hospital cover at age 35. You'll pay 10% more each year for your policy compared to someone who joined at or before age 30. Here's the breakdown:
This 10% loading will be applied to your hospital cover premium for 10 continuous years. After this period, if you've maintained your cover, the loading is removed. Remember: LHC Loading only applies to hospital cover, not extras cover.
This is what you could pay extra per year if you're 31 or over, and don't have hospital cover yet.
Age (at previous June 30) | LHC loading | What you'll pay extra per year |
---|---|---|
31 | 2% | $75.23* |
32 | 4% | $150.47* |
33 | 6% | $225.70* |
34 | 8% | $300.93* |
35-65 years old | Continues to increase 2% every year |
*Example used for illustrative purposes. Calculations based on a 2024 Single Gold Hospital Advantage Cover with a $750 excess in SA. No rebate and no direct debit discount applied. The LHC percentage will be added to your hospital cover and will remain in place for 10 continuous years.
Yes, you can avoid Lifetime Health Cover (LHC) Loading! Here's how:
Don't wait until it's too late. Start exploring your hospital cover options now to avoid unnecessary loading on your premiums.
While Australia boasts an excellent public health system, many opt for private hospital cover. Here's why:
Shorter Wait Times:
Choice of Doctor and Hospital:
Private Room Access:
Continuity of Care:
Avoid Lifetime Health Cover Loading:
Potential Tax Benefits:
Peace of Mind:
While the public system provides essential care, private hospital cover offers these additional benefits that many find valuable. Consider your personal health needs and financial situation when deciding if private cover is right for you.
Posted: Aug 12 2024
Disclaimer
You won’t need to re-serve equivalent waits
To make sure you’re happy
Caring for members’ health for over 85 years
You won’t need to re-serve equivalent waits
To make sure you’re happy
Caring for members’ health for over 85 years
© Copyright Health Partners. 2024 All Rights Reserved.
Health Partners is committed to providing quality and affordable health care, and we value our members and our obligation to protect your privacy. As part of our responsibility in protecting your privacy, from time to time we review our policies to ensure we are meeting our obligations. We have recently made some updates to our Privacy Policy. Please click here to view the Health Partners Privacy Policy.
© Copyright Health Partners. 2024 All Rights Reserved.
Health Partners is committed to providing quality and affordable health care, and we value our members and our obligation to protect your privacy. As part of our responsibility in protecting your privacy, from time to time we review our policies to ensure we are meeting our obligations. We have recently made some updates to our Privacy Policy. Please click here to view the Health Partners Privacy Policy.
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