Lifetime Health Cover loading: what it costs and how to avoid it
What is Lifetime Health Cover loading?
Lifetime Health Cover (LHC) loading is an Australian Government initiative that adds to the cost of your hospital cover premium if you take it out later in life. It’s designed to encourage Australians to take out private hospital cover earlier and maintain it over time.
Every Australian health fund is required to apply it, including Latrobe Health Services. The loading is 2% for each year you’re aged over 30 when you first take out cover. The loading is capped at 70%, and it comes off after 10 continuous years of cover.
Lifetime Health Cover applies to hospital cover only. It doesn’t apply to extras cover.
Not sure whether a loading applies to you? Call Latrobe Health Services on 1300 362 144 and we’ll work it out with you (it’s a quick call).
When do I need to take out hospital cover to avoid the loading?
The deadline is 1 July following your 31st birthday. The Australian Government calls this your base day. Hold private hospital cover on your base day and keep it, and your Lifetime Health Cover loading stays at 0%.
Lifetime Health Cover started on 1 July 2000. If you were already over 31 then, your base day is 1 July 2000, not the July after your birthday. Your base day can also change if you’ve migrated to Australia or lived overseas. Those rules are set out further down this page.
How much is the Lifetime Health Cover loading?
Your Lifetime Health Cover loading is set by your age when you first take out hospital cover. Join at 35 and the loading is 10%. Join at 45 and it’s 30%. The maximum of 70% applies from age 65.
| Age when you first take out hospital cover | Lifetime Health Cover loading |
|---|---|
| 30 or under, on or before your base day | 0% |
| 31 | 2% |
| 35 | 10% |
| 40 | 20% |
| 45 | 30% |
| 50 | 40% |
| 55 | 50% |
| 60 | 60% |
| 65 and over | 70% |
Every year you wait adds another 2% (worth knowing before your next birthday). The loading is applied to your hospital premium only, so on a combined policy your extras premium is unaffected.
Where two adults share a policy, Lifetime Health Cover loading is averaged across both. One person on 40% and one on 10% means 25% applied to the policy.
Do special rules apply to me?
Special rules can move your base day or change how your loading is worked out. Different rules may apply if you:
- have left the Australian Defence Force or the Australian Antarctic Division
- have migrated to Australia, or arrived as a refugee
- lived on Norfolk Island before it joined Australia’s private health insurance system
- were overseas when you turned 31, or have lived overseas long term
- are no longer entitled to a Department of Veterans' Affairs Gold Card.
Because these rules are set by the Australian Government and depend on your own dates, it’s worth checking them directly. See the Australian Government’s Lifetime Health Cover page and loading calculator, or call Latrobe Health Services on 1300 362 144 and we’ll go through it with you.
Can I have a break in cover without getting a loading?
Yes, up to a point. The Australian Government allows 1,094 days without cover once you’ve held hospital cover on or after your base day. That’s just under three years, and it covers your whole lifetime, not each break. Stay inside it and your Lifetime Health Cover loading isn’t affected.
Go past 1,094 days and a loading is applied when you next take out hospital cover. Thinking about suspending or cancelling? Call us on 1300 362 144 first, so you know what it will cost you later.
When does the Lifetime Health Cover loading stop?
Your Lifetime Health Cover loading is removed once you’ve held hospital cover with a loading for 10 continuous years. From that point your loading is 0%, as long as you keep your hospital cover.
Drop your hospital cover after the loading has been removed and a new loading can apply later.
What if I’m under 31?
Take out hospital cover before 1 July following your 31st birthday and keep it. You’ll never pay a Lifetime Health Cover loading. Australians aged 18 to 29 may also be eligible for an age-based discount of up to 10%. The discount reduces gradually as you get older.
What else affects what I pay for hospital cover?
Two other Australian Government schemes change the cost of private health insurance. The Medicare Levy Surcharge is an extra tax for higher income earners without private hospital cover. The Australian Government Rebate on private health insurance reduces your premium based on your income and age. Both are worth reading before you choose a policy.
The Australian Government has also proposed changes to the rebate for people aged 65 and over. Read what the proposed rebate changes mean for over 65s.
How do I find out if I have to pay a loading?
Call Latrobe Health Services on 1300 362 144 and we’ll check your Lifetime Health Cover status with you.
Or start a quote and we’ll show you what your hospital cover costs. It takes a couple of minutes.
Lifetime Health Cover is an Australian Government initiative and its rules are set by the Australian Government, not by Latrobe Health Services. This information is general and doesn’t take your personal circumstances into account. For the full rules and the official calculator, see privatehealth.gov.au.
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