Lifetime Health Cover (LHC) loading was introduced by the Australian Government to encourage more people to take out private hospital insurance at a younger age and to maintain it over time.
Once you turn 31, you’ve got until the following 1 July to buy private hospital cover and avoid paying the loading.
For every year you delay, you may have to pay an additional 2% (up to a maximum of 70%) on top of the cost of your The good news is the loading doesn’t last forever. Once you’ve had hospital cover for 10 continuous years, it will be removed.
The Lifetime Health Cover loading applies if you didn’t have private hospital cover on 1 July 2000, or by 1 July following your 31st birthday—whichever is later.
There are some exceptions. For example, if you recently migrated to Australia, or were overseas on 1 July following your 31st birthday, you might not need to pay. Call Australian Unity on 13 29 39 or visit the Australian Government’s Private Health website to find out more.
If you and your partner have been without cover for different lengths of time, your loading will be calculated by averaging out the two.
For example, if you’re paying a 4% loading, and your partner has a 10% loading, that will be averaged out to 7% on a couple or family policy.
The old fund will provide Australian Unity with a transfer certificate. This certificate has information about your previous cover, including your Lifetime Health Cover loading and any waiting periods you’ve already served.
That means your Lifetime Health Cover loading moves with you.