Love Knowing the Rules - Government Initiatives

Love Knowing the Rules - Government Initiatives


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).

As of 1 July 2013, the Australian Government Rebate on Private Health Insurance isn't available for the LHC loading portion of your membership payments (if applicable).