Lifetime Health Cover (LHC) is a Government initiative designed to encourage people to take out hospital insurance earlier in life and to maintain their cover. If you are 30 or over, do not currently hold PHI and have not or are no longer a permanent member of the ADF you may be impacted by Lifetime Health Cover (LHC).
You need to take out a private health insurance hospital policy by the 1st of July following your 31st birthday, to avoid paying LHC loading. For every year you delay, you will pay 2% more for your premium, up to a maximum of 70%. 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.
To cover small gaps, such as switching from one insurer to another, you are able to be without private cover for periods totalling 1094 days (i.e. three years less one day) during your lifetime, without affecting your loading.
Who is exempt from LHC?
Special Circumstances
For more information
