The Lifetime Health Cover Loading
If you don't have hospital cover by 1 July following your 31st birthday, a 2% loading is added to your hospital insurance premium for every year you're uninsured past age 30. This loading applies for the first 10 continuous years of cover.
The Real Cost of Waiting
Say basic hospital cover costs $1,500/year with no loading:
| Join At | Loading | Annual Premium | Extra Paid Over 10 Years |
|---|---|---|---|
| 30 or younger | 0% | $1,500 | $0 |
| 35 | 8% | $1,620 | $1,200 |
| 40 | 18% | $1,770 | $2,700 |
| 45 | 28% | $1,920 | $4,200 |
| 50 | 38% | $2,070 | $5,700 |
What You Need to Do
Get hospital cover (not just extras) before 1 July after your 31st birthday. The cheapest option is a Basic or Bronze hospital policy with a high excess ($750). This satisfies the LHC requirement and also avoids the Medicare Levy Surcharge if you earn over $93,000.
Exemptions
You won't pay the loading if you had hospital cover on your LHC base day (1 July after turning 31) or if you were overseas and not eligible for Medicare. The loading is based on your age minus 30 minus years of cover, so any years you did hold cover count in your favour.
Frequently Asked Questions
What exactly is the LHC deadline?
1 July following your 31st birthday. If you turn 31 on 15 March, your deadline is 1 July the same year. If you turn 31 on 15 August, your deadline is 1 July the following year.
Does extras cover count?
No. Only hospital cover (with a registered health insurer) counts for LHC loading. Extras-only policies don't satisfy the requirement.
Can I get rid of the loading?
Yes. After holding hospital cover for 10 continuous years, the loading is removed. You can't pause and resume — the 10 years must be continuous.