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Lifetime Health Cover loading is a penalty that applies to anyone who takes out private health insurance after their 31st birthday. The loading increases your premium by 2% for every year you don't have private health insurance over the age of 30. But it's completely avoidable – just take out a hospital policy before you turn 31.
How to avoid Lifetime Health Cover loading
Avoiding the Lifetime Health Cover loading is pretty straightforward – you just need to take out hospital cover by 1 July following your 31st birthday. We've listed some for you below. All prices are based on a single individual with less than $90,000 income and living in Sydney.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
The Lifetime Health Cover (LHC) loading adds a 2% fee for every year you don't have hospital cover over the age of 30. It's a government initiative designed to encourage Aussies to buy private health insurance sooner rather than later. Basically, it means you're charged a penalty if you only buy health insurance when you're older.
The LHC loading kicks in shortly after your 31st birthday. So if you wait until you're 40, you'll be charged an extra 20% on top of your premium; if you wait until you're 50, it'll be 40% extra, and so on. The maximum penalty anyone can be charged is an additional 70% on top of their premium. That penalty stays in place until you've held private health insurance for 10 continuous years.
If you never get private health insurance, you'll never have to pay LHC loading. But remember, almost half of all Australians have health insurance and many of them only decide to buy it later in life, so you might end up changing your mind further down the line.
Will the LHC actually save me money in the long run?
The LHC may seem like a big additional expense but Australian Medical Association (AMA) data suggests Australians who take it out earlier in life don't actually save money in the long run. You're still better off taking it out until later in life.
Lifetime Health Cover loading deadline
For most people, the Lifetime Health Cover loading deadline is 1 July, immediately following your 31st birthday. This is known as your "base day". However, your base day may be different if you were overseas on this day, you were born before 1 July 1934 or if you're a recent migrant to Australia.
If you are a new migrant and are over the age of 31, you will have to get hospital cover within 12 months of being registered for full Medicare benefits in order to avoid LHC loading.
How much does Lifetime Health Cover loading cost?
The cost of Lifetime Health Cover loading depends on how long you've gone without private health insurance and what level of cover you choose.
The table below uses the current base price of various policies offered by a major Australian health fund. Without taking annual price hikes into account, it shows how much your premiums could increase if you wait to buy health insurance.
Bought at 30
Bought at 40
Bought at 50
Bought at 60
Basic
$68
$81.60
$95.19
$108.80
Bronze
$80
$96
$112
$128
Silver
$99
$118.80
$138.60
$158.40
Gold
$168
$201.60
$235.20
$268
Exemptions for the Lifetime Health Cover loading
Exemptions for the LHC loading include:
If you were born before 1 July 1934
If you are overseas on 1 July following your 31st birthday
If you are over 30 and were overseas on 1 July 2000
If you are a member of the Australian Defence Force
If you are a Department of Veterans' Affairs (DVA) Gold Card holder
Why you can trust Finder's health insurance experts
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Unlike other comparison sites, we're not owned by an insurer. That means our opinions are our own and you can compare nearly every health fund in Australia on the site (and find a better deal).
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Since 2014, we've helped 350,000+ people find health insurance by explaining your options simply. We'll never ask for your number or email to see prices. We're here to help you make a decision.
Frequently asked questions
If you bought private hospital insurance after your base day, you'll need to hold cover for 10 continuous years before the fee is removed. For example, if you first took out hospital cover when you were 40 years old, you'd be paying a loading of 20%. If you held your cover continuously until you turned 50, the loading would then be removed.
No, the LHC does not affect the cost of extras cover. You'll only pay the LHC loading on hospital health insurance products.
Once you take out a policy, you're allowed a certain number of days cover-free without affecting your LHC. These are known as "days of absence" and you're allowed a total of 1,094 days (almost three years) across 10 years. Here are some of the permitted reasons for these days of absence:
Temporary gaps in cover. If you're switching from one health fund to another, any uncovered period counts towards your days of absence.
Temporarily suspending membership. If your fund approves a suspension for overseas travel, that period is not deducted from your days of absence.
Going overseas for an extended period. If you cancel your cover to travel overseas for a year or more, no days of absence are deducted. You can even travel back to Australia and still be considered overseas, providing your stay doesn't exceed 90 days.
The Lifetime Health Cover loading for couples is worked out based on an average of each person's rate. For example, if one of you has to pay a 10% loading and the other is on 5%, a couples or family policy will come with a 7.5% loading.
Gary Ross Hunter is an editor at Finder, specialising in insurance. He’s been writing about life, travel, home, car, pet and health insurance for over 6 years and regularly appears as an insurance expert in publications including The Sydney Morning Herald, news.com.au, The Telegraph, Explore Travel and Escape. Gary holds a Kaplan Tier 1 General Insurance (General Advice) certification and a Kaplan Tier 1 Generic Knowledge certification which meets the requirements of ASIC Regulatory Guide 146 (RG146).
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