What is it?

The Lifetime Health Cover (LHC) loading is an Australian Government initiative designed to encourage people to take out and maintain hospital cover earlier in life. The LHC loading means that for every year over the age of 30 that you don't have private hospital cover, you could be charged 2% more for hospital insurance when you finally do get it.

Take out cover at age...
  • 31

    pay an extra $51.80

    charged an extra 2%
  • 40

    pay an extra $517.90

    charged an extra 20%
  • 50

    pay an extra $1035.85

    charged an extra 40%
Based on a single HBF Top Hospital premium, after deducting a 26.791% Australian Government Rebate on private health insurance.

How could I avoid paying the LHC loading?

To avoid paying the LHC loading, simply take out hospital cover by 1 July following your 31st birthday. If you're already 31 or over and have never had private hospital cover, it's a still a good idea to get cover sooner, rather than later. This way, you could avoid the ongoing increases in the LHC loading.

How could getting hospital cover now save me money later?

Taking out private hospital insurance now could save you on premiums down the track, when you're more likely to need it. HBF has some great low cost hospital options that could help you avoid LHC loading without costing you an arm and a leg.

Other things you might need to know

  • People born before 1 July 1934 are exempt from LHC loading, no matter when they take out health cover.
  • The loading will be removed once you’ve held hospital cover continuously for 10 years.
  • Transferring between funds will not affect your LHC loading status.
  • LHC loading isn't applied to premiums for extras, urgent ambulance or overseas visitor cover.