Private Health Insurance
Lifetime Health Cover
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?
|•||if you were born on or before 1 July 1934|
|•||You are a member of the ADF your medical services are provided by the ADF, so you are considered to have hospital cover. If you discharge from the ADF after the 1st of July following your 31st birthday, you have 1094 days to join a health insurer and still pay the base rate. If you discharge from the ADF before the 1st of July following your 31st birthday, then the normal rules apply|
|•||If you hold a Department of Veteran Affairs Gold Card you are considered to have hospital cover from the date it was issued|
|•||You are overseas on the 1st of July following your 31st birthday, you will not pay LHC if you purchase hospital cover upon your return to Australia|
For more information
|•||Visit the Department of Health website|
|•||Visit the PrivateHealth.gov website|
|•||Call Navy Health on 1300 306 289|
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