Lifetime Health Cover Loading
The Lifetime Health Cover loading kicks in after you turn 31, but it’s avoidable with an $20 per week hospital policy.
Key takeaways
- Lifetime Health Cover loading is a penalty that applies to anyone who takes out private health insurance after their 31st birthday.
- The loading increases your premium by 2% for every year you don't have private health insurance over the age of 30.
- Good news is it's avoidable – just take out a hospital policy before you turn 31.
What is Lifetime Health Cover loading?
The Lifetime Health Cover (LHC) loading adds a 2% fee for every year you don't have hospital cover over the age of 30. It's a government initiative designed to encourage Aussies to buy private health insurance sooner rather than later. Basically, it means you're charged a penalty if you only buy health insurance when you're older.
The LHC loading kicks in shortly after your 31st birthday. So if you wait until you're 40, you'll be charged an extra 20% on top of your premium; if you wait until you're 50, it'll be 40% extra, and so on. The maximum penalty anyone can be charged is an additional 70% on top of their premium. That penalty stays in place until you've held private health insurance for 10 continuous years.
If you never get private health insurance, you'll never have to pay LHC loading. But remember, almost half of all Australians have health insurance and many of them only decide to buy it later in life, so you might end up changing your mind further down the line.
How to avoid Lifetime Health Cover loading
Avoiding the Lifetime Health Cover loading is pretty straightforward – you just need to take out hospital cover by 1 July following your 31st birthday.
Getting close to 30?
Avoid the LHC by finding a great policy - compare policies from 40+ funds in minutes.
No contact details required
Will the LHC actually save me money in the long run?
The LHC may seem like a big additional expense but Australian Medical Association (AMA) data suggests Australians who take it out earlier in life don't actually save money in the long run. You're still better off taking it out until later in life.
Expert insight
"If you're considering private health insurance, it's important to know how it impacts your taxes. The Medicare Levy Surcharge (MLS) is an additional tax for higher-income earners without private health cover. If you get insurance part way through the year, the MLS is only charged for the days you were without coverage. For example, if you're uninsured for half the year, you'll pay only half the MLS. This apportioning can significantly reduce your surcharge, making it a smart move to get covered sooner rather than later."
Lifetime Health Cover loading deadline
For most people, the Lifetime Health Cover loading deadline is 1 July, immediately following your 31st birthday. This is known as your "base day". However, your base day may be different if you were overseas on this day, you were born before 1 July 1934 or if you're a recent migrant to Australia.
If you are a new migrant and are over the age of 31, you will have to get hospital cover within 12 months of being registered for full Medicare benefits in order to avoid LHC loading.
How much does Lifetime Health Cover loading cost?
The cost of Lifetime Health Cover loading depends on how long you've gone without private health insurance and what level of cover you choose.
The table below uses some of the lowest prices for each tier from major Australian health funds. Without taking annual price hikes into account, it shows how much your premiums could increase if you wait to buy health insurance.
| Bought at 30 | Bought at 40 | Bought at 50 | Bought at 60 | |
|---|---|---|---|---|
Basic | $78 | $93.60 | $109.20 | $124.80 |
Bronze | $90 | $108.00 | $126.00 | $144.00 |
Silver | $113 | $135.60 | $158.20 | $180.80 |
Gold | $242 | $290.40 | $338.80 | $387.20 |
Exemptions for the Lifetime Health Cover loading
Exemptions for the LHC loading include:
- If you were born before 1 July 1934
- If you are overseas on 1 July following your 31st birthday
- If you are over 30 and were overseas on 1 July 2000
- If you are a member of the Australian Defence Force
- If you are a Department of Veterans' Affairs (DVA) Gold Card holder
Lifetime Health Cover loading calculator
You can use the Australian government's Lifetime Health Cover loading calculator to work out how much you'll pay. It also has a Ten Year Continuous Cover calculator if you want to work out when you'll stop paying the charge.
How much does health insurance cost?
We ask hundreds of Australians what they're paying for health insurance every month. Here's what their bill looked like in February 2025.- Extras only: $45
- Basic: $101
- Bronze: $141
- Silver: $188
- Gold: $242
Frequently asked questions
More resources on Finder
Ask a question
2 Responses
More guides on Finder
-
Private health insurance rebate
What is the private health insurance rebate and how has it changed?
-
Tax claim codes and benefit codes
Unsure of how to complete the Medicare Levy Surcharge section of your tax return or claim your rebate? This article can help you.
I ceased my health insuance in 2009 when I was 61 after having had it all my adult life. I wish to rejoin now 13 years later . Do I pay a percentage of the Lifetime Health Cover loading?
If so what would that cost me per year?
Hi Helen,
Thank you for your message.
Under the government’s rules – which you can read more about on the PrivateHealth.gov.au website – it is likely you’ll have to pay a LHC loading when you take out hospital cover. Your break in cover is quite a bit longer than 3 years, which means you won’t be within a “Days of Absence” allowance. This can exempt policyholders from loading increases for up to 1094 days (which is 3 years, minus one day).
Here is some further information from PrivateHealth.gov.au: “If … you have a total gap period of 1095 or more days – you will pay a LHC loading on rejoining hospital cover. The loading is an additional 2% on top of any previous loading, and will increase by 2% for every year after the 1094 days without cover.”
I hope this helps.
Best,
James