There are a few government rules that apply to health insurance and they can be confusing. If you’d like to chat about any of these, just give us a call on 1800 808 690.

Lifetime Health Cover (LHC)

Lifetime Health Cover is a Commonwealth Government initiative to reward people who keep their hospital cover. LHC recognises the length of time a person has private hospital cover with a registered health fund. If you start your cover earlier in life and maintain your hospital cover you’ll pay a lower premium each year compared to someone who starts their cover at a later age.

Provided you start your private hospital cover by 1 July after your 31st birthday, you won’t have to pay a LHC loading. If you don’t take out hospital cover until you’re older, your premium will be 2% higher for each year that you’re over 30. The maximum LHC loading of 70% is reached at age 65.

People who were born on or before 1 July 1934 are exempt from LHC and can join a health fund at any time and pay the same premium as someone who takes out cover at age 30.

LHC loadings stop after 10 years continuous hospital cover (conditions apply).