What is Lifetime Health Cover loading?
Lifetime Health Cover loading (LHC) is an age-based initiative introduced by the Australian Government to encourage people to take out hospital cover earlier in life.
Why is turning 31 so important?
You have until 1 July following your 31st birthday to take out hospital cover. After this time, a 2% loading is added to your hospital cover premium for every year you didn't have cover.
LHC loading is removed after 10 years of continuous hospital cover.
How is the LHC loading calculated?
LHC is based on your age when you first took out hospital cover. If you were to take out hospital cover after 1 July following your 31st birthday, the following LHC loading would be applicable based on your age.
|
AGE |
LHC loading |
|---|---|
| < 31 years old | No loading applies |
| 31 years old after 1 July | 2% |
| 32 years old | 4% |
| 33 years old | 6% |
| 34 years old | 8% |
| 35 years old | 10% |
| 36 years old | 12% |
| 37 years old | 14% |
| 38 years old | 16% |
| 39 - 65 years old |
Continues to increase by 2% for each year. Loading is capped at 70% |
To see what your individual loading might be, use the Lifetime Health Cover calculator.
FAQs about Lifetime Health Cover (LHC) loading
LHC doesn’t apply to extras cover, but if you have combined hospital and extras, LHC will only be applied to the hospital portion of your premium if applicable.
Your LHC loading moves with you if you switch health funds.
When you leave a health fund, they're required to give you a Transfer Certificate. It’s a record of your private health insurance history, including any LHC applicable, waiting periods served, previous claims and continuity of cover.
No. They are both Australian Government initiatives, but quite different.
LHC is based on your age when first purchasing hospital insurance whereas the Medicare Levy Surcharge (MLS) is an additional levy based on your income reaching certain thresholds. Learn more about the Medicare Levy Surcharge.
There are some circumstances where people may not have to pay LHC. Learn more about LHC exemption special circumstances.
If you're over 31 and hold hospital cover, you're able to access 'permitted days without hospital cover'. This means that you can be without hospital cover for a total of 1094 days during your lifetime without affecting your LHC loading.
Permitted days without hospital cover only relate to LHC loading, so it’s always best to check with us to make sure you won’t have to re-serve any waiting periods if you have a break in your cover.
If you suspend your membership (instead of cancelling it), you won’t pay any additional LHC loading on your hospital cover when you reactivate. The 10 years of continuous cover end date (when loading is removed) will be extended for the length of the suspension period. It’s worth noting that MLS may apply if you’re a higher income earner and do not have active hospital cover. Learn more about the Medicare Levy Surcharge.
Heading overseas?
If GMHBA has approved your cover suspension, overseas travel will not impact your LHC loading, as you're still considered to be maintaining your fund membership. This approved suspension period won't count towards your 1094 permitted days of absence from hospital cover.
If you suspend your cover to head overseas (up to a maximum of 3 years with GMHBA) you won’t need to use any of your permitted days of absence.
As with all things health insurance, suspension rules apply. Have a read through the GMHBA Important Information Guide to see if you’re eligible to suspend your cover. Or even easier, have a chat with our customer service team so you can jet off without any worries.
Your LHC loading will be automatically removed by your health fund after ten years of continuous hospital cover. GMHBA will advise you when this happens and of your revised premium without LHC loading.
Your LHC base day is usually the later of 1 July 2000 (when LHC was first introduced) or 1 July following your 31st birthday.
For a couple or family policy, the amount added to your premium is the average of both your individual loadings. For example, if you're on a couple policy and one adult has a loading of 16% and the other has no loading, the total LHC applied to the policy would be 8%.
When you take out private health hospital cover for the first time, you're given a ‘certified age of entry’ (CAE). This is used throughout your lifetime to calculate any applicable LHC loading when you hold hospital cover.