Health insurance explained

Frequently asked questions

Find quick answers to our members' most common questions.

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What is the Lifetime Health Cover Loading?

Lifetime Health Cover (LHC) loading is an extra cost on hospital insurance if you take cover after age 31. For each year without hospital cover after your 31st birthday, a 2% loading applies when you later join, capped at 70% (for example, 10% at age 36). The loading is removed after 10 continuous years of cover. To avoid LHC, take out hospital cover by 1 July after your 31st birthday.

Am I still eligible for the Australian Government rebate on private health insurance if the lifetime health cover loading applies to me?

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.

If the Lifetime Health Cover loading applies to me, will the loading affect other people on my couple's or family policy?

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%.

I'm over 31 and the Lifetime Health Cover loading has already been applied to me. Do I need to purchase hospital insurance?

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.

My 31st birthday falls in the first half of the year. What date do I need to purchase hospital insurance by to avoid the lifetime health cover loading?

Say your 31st birthday is on the 21st April 2021 - you have until the 1st July 2021 to buy hospital insurance and avoid the loading.