What is Lifetime Health Cover (LHC) loading?

LHC is a Government initiative designed to encourage young adults to take out hospital cover earlier in life and maintain their cover. For each year from 1st July after your 31st birthday that you do not have hospital cover, you will pay a 2% loading each year. For example, at 40 you will have a loading of 20% payable on top of your premiums compared to someone who took out hospital cover at 31.

How does this affect me?

If you take out hospital cover by 1st July after your 31st birthday and maintain that cover, you will not have to pay LHC. However if you take out hospital cover at a later date, you’ll pay 2% more on top of your premiums and continue to pay LHC for 10 continuous years (to a maximum of 70%) and then it will be removed. LHC only applies to hospital cover, even if you already have extras cover you’ll still need to take out hospital cover by 1st July following your 31st birthday to avoid the loading.

Switching from another health insurer

Once you have had private health insurance over the age of 31 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
• if you are a member of the Australian Defence Forces (ADF).

ADF personnel

If you are a member of the Australian Defence Forces (ADF) your medical services are provided by the ADF, so you are considered to have hospital cover. Therefore current ADF personnel do not incur a loading whilst serving.

What will I need to do?

You’ll need to add hospital cover onto your membership by 1st July following your 31st birthday. To add hospital cover to your membership, log into Online Member Services to update your cover or call Navy Health on 1300 306 289.