What is the Lifetime Health Cover loading?

If you’re 31 or older and don’t have hospital insurance, it’s still a good idea to buy it as soon as possible. This is because the lifetime health cover loading (LHC) goes up by 2% every year that you don’t have hospital cover, up to a maximum of 70%. For example, if you get hospital insurance at 41, you’ll pay an extra 22% on top of the base cost of your premium, so long as you maintain your cover.

The good news is that the LHC loading doesn’t last forever – once you’ve held hospital insurance for a continuous 10 years, the loading is removed.

Just remember, the LHC loading only applies to hospital cover; it does not apply to extras, urgent ambulance or overseas visitors’ insurance. For example, if you buy hospital insurance in addition to extras or urgent ambulance insurance, you’ll only pay the LHC loading on the hospital insurance portion of your premium.

For couples and families, the lifetime health cover 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%.

If you pay the lifetime health cover (LHC) loading, you’re still eligible for the rebate. However, you’ll only get a rebate on the base premium of your hospital insurance and not the LHC loading component.

Yes, your lifetime health cover loading status stays the same even when you switch health funds.