lifetime health cover australia
Lifetime Health Cover (LHC) is a financial loading that can be payable in addition to the base rate premium for your private health insurance hospital cover. LHC was introduced into legislation on 1 July 2000 and is designed to encourage people to take out hospital insurance earlier in life, and to maintain their cover over their lifetime.
In most cases, your Lifetime Health Cover base day is the later of 1 July 2000 or the 1st of July following your 31st birthday. For example, if you take out hospital cover at age 40 you will pay 20% more than someone who first took out hospital cover at age 30. The maximum loading is 70%.
Lifetime Health Cover. The Lifetime Health Cover initiative is a way of encouraging young Australians to take up private healthcare. Fundamentally, if you take out private healthcare at a young age you benefit more as you get older. If you don’t take out Private Hospital Cover by your 31st birthday, you will be forced to pay a 2% loading
Lifetime health cover. To avoid incurring an LHC loading, residents of Australia must ensure they hold an appropriate level of private patient hospital cover before they reach their LHC ‘base day’. For many people, LHC base day is 1 July following their 31st birthday, but …
Gaps in hospital cover. To cover small gaps in private hospital cover, such as switching from one fund to another, you are able to be without private hospital cover for up to 1094 days (one day less than three years) during your lifetime, without affecting your loading.
As with the Medicare Levy Surcharge and the Private Health Insurance Rebate, Lifetime Health Cover (LHC) is an initiative designed to encourage young people to take out health insurance and, in doing so, reduce the burden on the public health system.
However if you are subsequently overseas on your Lifetime Health Cover base day and if you registered with Medicare on or after 1 July 2009, then you will not have to pay a Lifetime Health Cover loading if you purchase hospital cover within 12 months of your return to Australia.