Health Insurance: lifetime health cover

Lifetime Health Cover is a Government initiative designed to encourage people to take out hospital insurance earlier in life, and to maintain their cover. The program started on 1 July 2000. For those who purchase hospital cover earlier in life, and keep it, they will be paying lower premiums compared to folks who join LHC when they are older. LHC loadings apply only to hospital cover. They do not apply to private health insurance general treatment cover (also known as ancillary cover or extras).

Since LHC encourages younger Australians to get hospital insurance early, it improves the overall age profile of health insurance members, which helps make premiums more affordable for all members Australia-wide.

To avoid paying a LHC loading, you need to purchase hospital cover by 1 July following your 31st birthday. If you purchase hospital cover after this date you may be required to pay a LHC loading – 2% for each year you are over 30. Any LHC loading that you pay for ten (10) continuous years will be removed from your hospital cover premium as long as you retain your hospital cover.

A Lifetime Health Cover Calculator is available at the Private Health Insurance Administration Council's (PHIAC) website to assist you in computing complicated payment requirements. The website also includes a list of all registered Australian private health insurers.