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.
Good news is it's avoidable – just take out a hospital policy before you turn 31.
What is Lifetime Health Cover loading?
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.
So, how can I avoid the 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.
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The 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 some of the lowest prices for each tier from major Australian health funds. 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
$78
$93.60
$109.20
$124.80
Bronze
$90
$108.00
$126.00
$144.00
Silver
$113
$135.60
$158.20
$180.80
Gold
$242
$290.40
$338.80
$387.20
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
We ask hundreds of Australians what they're paying for health insurance every month. Here's what their bill looked like in March 2026.
Extras only: $53
Basic: $90
Bronze: $144
Silver: $184
Gold: $285
Price based on 400+ responses for single hospital or extras insurance.
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.
You only need hospital cover to avoid the loading — extras cover doesn't count. Basic tier hospital policies are the most affordable option, with some starting from around $20–25 a week. While Basic cover is quite limited in what it pays for, it's enough to satisfy the LHC requirement. You can always upgrade your cover later without affecting your loading status. Compare hospital cover policies here.
Yes, the LHC loading and the Medicare Levy Surcharge (MLS) are two separate things. The MLS only affects higher income earners (singles earning over $93,000 in 2025–26), but the LHC loading applies to everyone who takes out hospital cover after their 31st birthday, regardless of income.
Yes, as long as your policy is active before 1 July following your 31st birthday, you'll avoid the loading, and there's no minimum holding period required to meet the deadline. Just make sure your cover start date is confirmed by your insurer before that date, as processing times can vary.
Yes. Once you've held continuous hospital cover for 10 years, the loading is automatically removed from your premium. The clock starts from when you first took out hospital cover. You can use the government's Ten Year Continuous Cover calculator to estimate when your loading will be lifted.
No, the loading only applies to hospital cover, not extras-only policies. So if you currently hold dental, optical or physiotherapy cover but no hospital policy, you're still accumulating LHC loading. You'll need a hospital policy to stop the clock.
Your loading percentage stays the same and doesn't reset or increase when you upgrade. The loading is applied as a percentage on top of whatever premium you're paying, so moving from Basic to Gold cover will naturally mean paying more in dollar terms, but the loading rate itself won't change.
Sources
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Gary Ross Hunter has over 6 years of expertise writing about insurance, including life, health, home, and car insurance. Having reviewed hundreds of product disclosure statements and published over 800 articles, he loves simplifying complex insurance topics for everyday readers. Gary has contributed to major outlets like Yahoo Finance, The Sydney Morning Herald, and news.com.au, and holds a Bachelor of Arts (Honours) in English Literature from the University of Glasgow, along with a Tier 2 General Advice certification, ensuring his work adheres to ASIC’s RG146 standards.
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I ceased my health insuance in 2009 when I was 61 after having had it all my adult life. I wish to rejoin now 13 years later . Do I pay a percentage of the Lifetime Health Cover loading?
If so what would that cost me per year?
Finder
JamesJune 6, 2023Finder
Hi Helen,
Thank you for your message.
Under the government’s rules – which you can read more about on the PrivateHealth.gov.au website – it is likely you’ll have to pay a LHC loading when you take out hospital cover. Your break in cover is quite a bit longer than 3 years, which means you won’t be within a “Days of Absence” allowance. This can exempt policyholders from loading increases for up to 1094 days (which is 3 years, minus one day).
Here is some further information from PrivateHealth.gov.au: “If … you have a total gap period of 1095 or more days – you will pay a LHC loading on rejoining hospital cover. The loading is an additional 2% on top of any previous loading, and will increase by 2% for every year after the 1094 days without cover.”
Unsure of how to complete the Medicare Levy Surcharge section of your tax return or claim your rebate? This article can help you.
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I ceased my health insuance in 2009 when I was 61 after having had it all my adult life. I wish to rejoin now 13 years later . Do I pay a percentage of the Lifetime Health Cover loading?
If so what would that cost me per year?
Hi Helen,
Thank you for your message.
Under the government’s rules – which you can read more about on the PrivateHealth.gov.au website – it is likely you’ll have to pay a LHC loading when you take out hospital cover. Your break in cover is quite a bit longer than 3 years, which means you won’t be within a “Days of Absence” allowance. This can exempt policyholders from loading increases for up to 1094 days (which is 3 years, minus one day).
Here is some further information from PrivateHealth.gov.au: “If … you have a total gap period of 1095 or more days – you will pay a LHC loading on rejoining hospital cover. The loading is an additional 2% on top of any previous loading, and will increase by 2% for every year after the 1094 days without cover.”
I hope this helps.
Best,
James