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Lifetime health cover

LHC is a loading added to your hospital premium if you didn't have private hospital cover from the year you turn 31.

Last updated 29 June 2023

Lifetime health cover loading

Lifetime Health Cover (LHC) is a government initiative that encourages you to purchase and maintain private patient hospital cover earlier in life.

If you have not taken out and maintained private patient hospital cover from the year you turn 31 and then you decide to take it out later in life, you will pay a 2% LHC loading on top of your premium for every year you are aged over 30.

For example, if you take out private patient hospital cover when you are 40 years old, you could pay an extra 20% on the cost of this cover per year for 10 years. If you wait until you are 50 years old, you could pay 40% more per year for 10 years.

The maximum LHC loading that can be applied is 70%. Once you have paid LHC loading for 10 years of continuous cover, you will no longer have to pay this loading.

If you cancel your private patient hospital cover after paying for the LHC loading for 10 continuous years, you may become liable to pay the LHC loading again if you take out another private patient hospital cover later.

When you don't have to pay the LHC loading

You don't have to pay the LHC loading if any of the following apply to you:

• you are aged under 31 years old
• you hold an appropriate level of private patient hospital cover before you reach your LHC 'base day' – for many people, LHC base day is 1 July following their 31st birthday, but this can change depending on personal circumstances such as if you are overseas on this day
• you are a new migrant to Australia, and are aged 31 or over, and you had hospital cover within 12 months of being registered for full Medicare benefits
• you were born on or before 1 July 1934.

LHC loadings apply only to private patient hospital cover – they don't apply to general treatment cover (also known as ancillary or extras cover).

LHC and the private health insurance rebate

The government does not pay the private health insurance rebate on LHC loading component of a policy.

Example: No private health insurance rebate on LHC loading

On 1 July 2022, Rebecca pays a premium of $220 for two months of her private patient hospital cover. Due to Rebecca’s circumstances, her premium includes LHC loading of 10%. The premium eligible for the private health insurance rebate is $200 only, because the LHC loading of $20 does not qualify for this rebate.

Rebecca's income is $59,000 and she is eligible for the 24.608% rebate. She receives a rebate of $49, which is 24.608% of the $200 premium eligible for the rebate. Rebecca does not receive any rebate on the LHC loading of $20.

See Lifetime health cover External Link and Lifetime health cover calculator External Link for more information and to calculate your LHC.

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Private health insurance and Medicare

Private health insurance may help to cover some health care costs that we don’t.

on this page

What insurance covers, what insurance doesn’t cover, how to save money with private health insurance, how to claim medicare when you have private health insurance.

There are 2 types of private health insurance:

• hospital cover for things like accommodation and theatre fees
• general treatment cover for services like dental and physio.

Many insurers offer combined hospital and general cover. Most private health insurance lets you:

• choose your own surgeon or other specialist
• have treatment in a private hospital or as a private patient in a public hospital.

Insurers can tell you what they’ll pay for and how much they’ll pay. This will help you choose a level of cover that suits your needs and budget.

You can read more about:

• what private health insurance is on the Department of Health and Aged Care website
• what insurance covers on the PrivateHealth.gov.au website.

You can still use our services even when you have private health insurance. For instance, you can choose to go to a public hospital as a public patient.

Read more about health care and Medicare .

Private health insurance doesn’t cover:

• some specialist visits
• visits to a public or private hospital emergency department.

Unless you’re a patient in hospital, it also doesn’t cover:

• any x-rays or other scans
• any blood tests or other pathology tests.

Medicare normally covers these things. Read more about what Medicare covers .

Private health insurance rebate

You may be able to get a rebate on what you pay for private health insurance if you:

• earn less than the income threshold
• have a high enough level of hospital cover.

Your income must be within the threshold to get the rebate. It can either:

• reduce your insurance premium
• be a tax offset on your income tax return.

Read more about the Australian Government rebate on private health insurance .

Use the private health insurance rebate calculator to work out your rebate amount on the Australian Taxation Office website.

Private health insurance and tax

You may also have to pay an extra charge on top of the normal Medicare levy if you:

• don’t have private hospital insurance
• earn over the income threshold.

You pay this Medicare levy surcharge as part of your income tax.

Read more about Medicare and tax .

Lifetime health cover

Australia’s lifetime health cover system can save you money if you:

• get private hospital insurance before you turn 31
• keep this private cover for the rest of your life.

If you get private hospital insurance before you turn 31, you’ll qualify for lifetime health cover. This means you only pay the base rate for your insurance.

If you first get private hospital insurance after you turn 31, you’ll:

• pay an extra 2% for every year older than 31 you are when your cover starts
• keep paying this higher rate for at least 10 years after that.

James and Max are twins aged 41. James has had private hospital insurance since he was 29. Max got it for the first time this year. Although he chose the same insurer and the same level of cover as James, he pays more for it. This is because James qualifies for a lifetime health cover rebate and Max doesn’t. Max now pays 2% more each year because he waited 10 years after turning 31 to get private cover.

Find out more about lifetime health cover on the PrivateHealth.gov.au website.

If you have private health insurance, you can still use Medicare services.

There are times when you can claim Medicare benefits and use your private health insurance at the same time. For example, if you go to a public hospital as a private patient, you may be able to claim:

• from us for the costs we cover
• from your insurer for some or all of the rest.

This means you’ll need to claim from 2 places for the same bills. You’ll need to submit a Medicare claim form and a Medicare Two-way claim form .

If you submit your forms to us, we’ll pass on your insurer’s share to them. If you submit your forms to your insurer, they’ll pass on our share to us.

Learn more about how to submit a claim using Medicare Two-way .

You can also use Medicare Two-way to claim for a treatment that we don’t cover, like physio, dental and optical.

Not all insurers offer Medicare Two-way. You’ll need to check with yours. If yours doesn’t, you’ll need to make claims with us and with your insurer.

Makes submitting health claims easier, if you have private health insurance.

This information was printed 21 May 2024 from https://www.servicesaustralia.gov.au/private-health-insurance-and-medicare . It may not include all of the relevant information on this topic. Please consider any relevant site notices at https://www.servicesaustralia.gov.au/site-notices when using this material.

Printed link references

What is the Lifetime Health Cover loading?

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% on top of the cost of your private hospital cover.

How does Lifetime Health Cover loading work?

The Lifetime Health Cover loading was introduced by the Australian Government in July 2000 to encourage people to take out private hospital insurance at a younger age and 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 private hospital cover . The good news is that the loading doesn’t last a lifetime. Once you have held private hospital cover for 10 continuous years, the loading will be removed.

Does everyone have to pay?

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

How does Lifetime Health Cover loading affect couples and families?

If you and your partner have been without cover for different lengths of time, your Lifetime Health Cover 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.

What happens when you switch to a new health fund?

The old fund will provide your new health fund with a transfer certificate. This certificate has information about your previous cover including your Lifetime Health Cover loading plus details about any waiting periods you’ve already completed, so that these can be applied to your new cover.

That means that your Lifetime Health Cover loading moves with you.

Switch to Australian Unity

Can you have gaps in hospital cover?

Can you suspend your private hospital cover, i'm going overseas for 1 year or more, how will this affect my lifetime health cover loading, for example, if your private hospital cover costs $1,000 per year, buy cover at age 31.

• 0% Lifetime Health Cover loading Once you turn 31, you’ve got until the following 1 July to buy private hospital cover
• $0 extra Lifetime Health Cover loading a year As long as you maintain your private hospital cover, you’ll avoid paying any Lifetime Health Cover loading
• $0 extra Lifetime Health Cover loading over 10 years Enjoy the benefits of private hospital cover without having to pay extra loading

Wait until you turn 50

• Up to 40% Lifetime Health Cover loading For every year you delay, you may have to pay an extra 2% for your private hospital cover
• About $400 extra Lifetime Health Cover loading a year The longer you delay, the more it can cost—up to a maximum of 70% loading
• About $4,000 over 10 years You can get the same level of cover, it can just cost you more for the first 10 years

Get a quick quote now

Still got questions.

Find the answers to your questions below, or to find out more about how the Lifetime Health Cover loading affects your health insurance premium or if you’d like us to request a transfer certificate from your previous health fund, call us on 13 29 39. You can also visit the Private Health website or ATO website . If you have specific tax-related questions, contact your registered tax agent.

We're here for you

Australian Government Department of Health and Aged Care

Lifetime Health Cover Calculators

Use these calculators to help you work out the lifetime health cover (LHC) loading payable on your private hospital cover.

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Lifetime health cover for migrants

You'll pay a price if you take out health insurance too late..

Fact-checked

Checked for accuracy by our qualified fact-checkers and verifiers. Find out more about fact-checking at CHOICE .

Figuring out whether or not you need private health insurance if you're an Australian living in Australia is tricky enough.

If you're a migrant or an Australian returning from overseas it gets even trickier. You may end up paying a lot more than you otherwise would if you don't understand the rules.

On this page:

Lifetime Health Cover for migrants

How it works, lhc for overseas residents and citizens, how does the lhc affect migrants to australia, who's responsible for making migrants aware of lhc loading, how to appeal, how to lodge an lhc-related complaint, the lifetime health cover loading.

The first thing to understand is that the Australian government really wants you to take out private health insurance to ease the burden on the public healthcare system, and that's fair enough.

It's why the government imposes a penalty on Australian citizens or permanent residents who don't take out private health insurance by the start of the financial year following their 31st birthday.

The penalty is called Lifetime Health Cover (LHC) loading , and it adds a two percent surcharge on top of your premium for every year you don't have private health insurance starting on 1 July after you turn 31.

LHC only applies to hospital cover; you're not required to take out extras cover (for things like dentistry and physio) to avoid LHC loading.

If and when you do get hospital private health insurance, the loading continues for 10 years.

The surcharge has a 70% cap, so if you delay getting private health insurance until age 66, for instance, almost half of your premium will be an LHC surcharge. As an example:

• For couples taking out cover in their mid-sixties and facing an annual premium of $3400, the total once you add in LHC loading would balloon out to $5780 a year. (Though you're exempt from LHC loading if you were born before 1 July 1934.)

Well before your mature years, however, an LHC surcharge can cost you many thousands of dollars in premiums you wouldn't have had to pay if you'd bought a private health insurance policy when the government wanted you to.

With the cost of private health insurance continuing to rise significantly even without LHC loading, such a financial penalty appears to have proven a pretty effective deterrent to people putting off private health insurance for too long if they plan to take it out at all.

The LHC protocol is pretty straightforward for Australian citizens, but what about migrants who arrived in Australia well after age 31 and didn't get the message about the costs of LHC loading and the deadline that applies to migrants?

Is it fair to charge LHC loading for years that a migrant did not yet live in Australia and therefore were not a burden on the Australian healthcare system? Whether it's fair or not, that's how it works.

We asked the Department of Health about this discrepancy, but a spokesperson simply reiterated the policy, saying "for migrants, the LHC loading of 2% for each year is applied regardless of whether or not they lived in Australia when they were aged 30 or over". 

It seems even less fair when you consider the migrant may well have had private health insurance in the country they came from.

LHC for migrants

• Migrants to Australia who are over 31 when they arrive have 365 days from Medicare registration to take out private health insurance and avoid LHC loading. If you miss the 365-day deadline, your 'base day' – when the 2% loading would begin – will be 1 July after your 31st birthday, regardless of where you were living at the time.
• If you migrate and turn 31 while living in Australia as a permanent resident or citizen, you have until 1 July following your 31st birthday or one year after Medicare registration to take out private health insurance and avoid LHC loading, whichever event comes second. In this case, your 'base day' is whichever of these dates applies to your situation.
• If you're a migrant who is overseas on 1 July following your 31st birthday and you registered with Medicare on or after 1 July 2009, you have 365 days after returning to Australia to take out private health insurance and avoid LHC loading.
• Australian citizens and permanent residents who were overseas on 1 July following a 31st birthday in Australia that fell after 1 July 2000 have 365 days after returning to Australia to take out private health insurance and avoid LHC loading. You can be in Australia for up to 90 days per visit before the 365-day countdown begins, though the 90 days will count toward that limit if you stay longer.
• Australian citizens and permanent residents who were overseas and over the age of 31 on 1 July 2000 have 1094 days to take out private health insurance once they return to Australia without incurring the LHC loading. The 1094 is a lifetime limit. You can return to Australia while living overseas for up to 90 days at a time without affecting the limit, but anything over 90 days counts against the 1094 total.

But bear in mind that health funds can make mistakes, either through incompetence or negligence. One Australian woman who was living overseas when LHC loading was first introduced in July 2000 recently contacted CHOICE about her LHC loading issue and ending up getting a $6200 refund from her insurer due to an incorrectly applied loading. 

If you migrate from one of the 11 countries that has reciprocal healthcare agreements with Australia, your 365-day countdown to take out private health insurance and avoid LHC loading after age 31 starts when you're granted full Medicare eligibility.

There are other ins and outs and exemptions to LHC loading. Go to the Private Health Insurance Ombudsman website to find out more.

Consider this real-life case study

• Our case study moved to Australia at age 45 and took out private health insurance (PHI) with HCF two weeks past the 365-day deadline to avoid LHC loading. He had not heard of the LHC levy, nor had his Australian wife. It was a coincidence that he was so close to the deadline. LHC information is communicated to migrants by the Department of Health and the Department of Human Services, but it's easy to miss the memo in the barrage of other migrant paperwork.
• Because our case study missed the deadline, HCF applied a 32% LHC loading. It meant that a 2% surcharge was added for every year after age 31 that this person did not have Australian private health insurance. The kicker is that this person did not migrate to Australia until age 45, so in effect he was penalised for accessing the Australian healthcare system without private health insurance for the 14 years between ages 31 and 45 – years when he did not live in Australia and could not have accessed the Australian healthcare system. Then another 2% loading was added for each year he was a resident of Australia without private health insurance, even though he was only about two weeks into his second year. During the years between ages 31 and 45 he had PHI in his own country.
• Our case study appealed to HCF regarding his situation to no avail, though his Australian wife (who had 1094 days, not 365, to take out private health insurance upon returning to Australia without incurring an LHC loading) was reimbursed $2188.55 after providing an International Movement Record .  

How much has our case study paid in LHC loading to date? Had he not caught wind of the LHC issue and requested the rebate from HCF, it would have been $5422.50 as of January 2017.

Factoring in his wife's rebate and $121.45 in LHC loading on his latest monthly premium payment, he has paid $3355.40 so far. His 10-year LHC period ends in July 2017.

According to the Department of Health spokesperson, the Department of Human Services sends migrants information about private health insurance and LHC loading along with their Medicare cards, and the Department of Health sends new migrants info about LHC in May each year.

A spokeswoman for the Department of Immigration told us "new migrants have access to a range of information about health and social services in Australia via links on the Department's website ," adding that "questions about how the Lifetime Health Cover loading is applied should be directed to the Department of Health".

Though the insurer made no such enquiries with our case study, the Private Health Insurance Ombudsman told CHOICE that health insurers should ask new customers about their immigration and citizenship status and how it might apply to LHC loading.

"It would be expected that health insurers should make appropriate enquiries at the time of joining to ensure the correct LHC loading is applied," a spokesperson said. "Where the incorrect loading has been applied, the insurer may be obliged to retrospectively correct this."

It's worth pointing out that the revenue generated by LHC loading stays with the private health funds instead of going to the health department to help offset the burden placed on the healthcare system by people without private health insurance, which would seem to make sense. 

against an LHC loading

If you're a migrant or returning citizen and think LHC loading has been inaccurately applied to your private health insurance premium, you'll need two documents to make your case.

• International Movement Record – Indicates when you first arrived in Australia as a permanent resident or returning citizen. You will need to request this from the Department of Immigration and Border Protection. Our case study received his in a few days.
• Medicare Eligibility Letter – Indicates when you first became eligible for Medicare benefits and, for migrants, is used to establish your "base day", or the day when the 365-day countdown to obtain private health insurance and avoid an LHC loading begins. Our case study had to visit a Centrelink/Medicare office to obtain this letter.

The Private Health Insurance Ombudsman requires you to try to resolve any dispute through the health insurance provider's complaints process first.

If that doesn't work out – or you think the insurer is taking too long to deal with the complaint – contact the PHIO on 1300 362 072, 9am-5pm Mon-Fri (AEST), or email [email protected].

Stock images:  Getty, unless otherwise stated.

Join the conversation

To share your thoughts or ask a question, visit the CHOICE Community forum.

Did you receive a letter regarding Lifetime Health Cover?

The federal government has sent out a word of warning to uninsured Australians. On May 4, the Department of Health posted a letter and fact sheet regarding lifetime health cover (LHC), with the aim of providing Australians with more information with which to make a decision on their private health insurance needs .

It is typically the way that people often require medical assistance to a greater extent later in life, and the cost of health insurance varies depending on a policyholder's age. Planning ahead can help ensure that any private hospital treatment is covered by health insurance benefits.

However, LHC can prove a complex issue. Not everyone understands what the term means, and it's easy to believe with the foresight of youth that medical treatment will not be necessary at any point.

With around half of all Australians covered by private health insurance, many understand the risks of going without, and there is a real reason to consider it earlier in life.

What is Lifetime Health Cover?

Lifetime Health Cover  is an initiative to encourage those over the age of 30 to use the private health insurance model and avoid premium loadings.

A 2 per cent annual loading applies for any person purchasing private health insurance after July 1 following their 31st birthday, up to a maximum 70 per cent.

This soon adds up, and a person taking out health insurance for the first time at the age of 65 could see their coverage costing 70 per cent more than the same policy bought by a 30 year old.

LHC is not a part of general treatment (extras) cover, overseas visitors' cover, overseas students' cover or international health cover, so it should not be presumed that any of these policyholders will avoid the loading.

This is why, with almost 200,000 uninsured Australians approaching the 31-year milestone, the Department of Health has taken measures to help people better understand the risks by posting out a reminder.

Have you recently turned 31?

As explained above, LHC applies on July 1 after a person has reached 31. If your 31st birthday has been during the 2014/2015 financial year and you are currently uninsured, you may wish to purchase private health cover before June 30, or the first 2 per cent loading will be activated.

This is not a cost that is immediately felt; however, if you hold off until your 40th birthday before deciding that you can benefit from private health benefits, you will be paying significantly more for the same policy than you would by taking it out today.

If you have recently turned 31 and already have a health insurance policy, you will be exempt from the LHC loadings and there is no need to worry about this added cost.

Are you a migrant?

As an overseas national working in Australia on either a permanent or a  457 working visa , you will also need to consider LHC. The government also sent its mailer to 64,000 migrants who could fall into this category.

If you are over the age of 30 and have in this financial year registered for either a blue (interim) or green (full) card to receive Medicare benefits, you have until the first anniversary of your card's registration before the same LHC premium loading begins to apply.

By becoming a private health insurance policyholder, you will be covered against this 2 per cent loading being applied.

What to do next

So, if you fall into either of these two categories, have received a letter from the Department of Health, or if you simply want to become a private health insurance policyholder for any other reason, what's the next step?

Ideally, you'll want to find a policy that meets your budget – health funds tend to charge different rates, even for identical policies. You'll also need a policy that is tailored for your needs as an individual to make sure it is one of quality.

Comparing Australia's 34 health insurance providers will help you fill both of these requirements and find a suitable level of cover.

HICA is able to offer free and extensive assistance for anyone worried about their LHC loadings or looking to purchase private health insurance. Contact us today on 1300 44 22 11 for impartial and professional advice.

Related Posts

What are the downsides of not having health insurance?

What are the benefits of private health insurance?

All Australians should understand Lifetime Health Cover

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• Health Cover
• Lifetime Health Cover loading

What is the Lifetime Health Cover loading?

Find out how the Lifetime Health Cover loading works and how it might affect you.

Already a member? See tax questions  

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What is lifetime health cover loading.

Lifetime Health Cover loading (LHC loading) is an extra cost applied to the price of hospital cover.

This extra cost is applied by the government, to encourage Australians to get hospital cover earlier in life.

Related Compare affordable hospital cover options

How does Lifetime Health Cover loading work?

If you don’t have hospital cover by 1 July following your 31st birthday, you’ll pay an extra 2% for each year you wait.

The loading is capped at a maximum of 70%.

If you’re over 31 and have never had hospital cover, you’ll most likely pay the extra cost. But you can avoid paying even more if you get hospital cover now.

There are special circumstances where you’d be exempt from LHC. Head to the Private Health Insurance Ombudsman to find out more.

Related Compare affordable hospital cover options See frequently asked questions about LHC

Video: Lifetime Health Cover loading explained

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Frequently asked questions

My 31st birthday falls in the first half of the year. what date do i need to purchase hospital insurance by to avoid the lifetime health cover loading, my birthday falls in the second half of the year. what date do i need to purchase hospital insurance by to avoid the lifetime health cover loading, i’m over 31 and the lifetime health cover loading has already been applied to me. do i need to purchase hospital insurance.

If you’re 31 or older and don’t have hospital insurance, it’s still a good idea to buy it as soon as possible. This is because the lifetime health cover loading (LHC) goes up by 2% every year that you don’t have hospital cover, up to a maximum of 70%. For example, if you get hospital insurance at 41, you’ll pay an extra 22% on top of the base cost of your premium, so long as you maintain your cover.

The good news is that the LHC loading doesn’t last forever – once you’ve held hospital insurance for a continuous 10 years, the loading is removed.

Just remember, the LHC loading only applies to hospital cover; it does not apply to extras, urgent ambulance or overseas visitors’ insurance. For example, if you buy hospital insurance in addition to extras or urgent ambulance insurance, you’ll only pay the LHC loading on the hospital insurance portion of your premium.

If the lifetime health cover loading applies to me, will the loading affect other people on my couple’s or family policy?

For couples  and families , the lifetime health cover loading is calculated as an average between the two adults. For example, if one person has a 40% loading and the other person has a 10% loading, the loading applied to the couple’s policy is 25%.

Am I still eligible for the Australian Government rebate on private health insurance if the lifetime health cover loading applies to me?

If you pay the lifetime health cover (LHC) loading, you’re still eligible for the rebate. However, you’ll only get a rebate on the base premium of your hospital insurance and not the LHC loading component.

Will the lifetime health cover loading still apply if I switch health funds?

Yes, your lifetime health cover loading status stays the same even when you switch health funds.

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• What is the lifetime health cover loading in Australia?

Chris Stanley

What Is The Lifetime Health Cover Loading In Australia?

Lifetime Health Cover loading applies to anyone who doesn't get hospital cover on or before the 1st July following their 31st birthday but then takes out eligible hospital insurance later in life.

You'll get a 2% LHC loading surcharge for every year you don't take out eligible hospital insurance once you turn 31.

LCH loading applies to hospital cover only -- it doesn't apply to extras or ambulance cover.

Lifetime Health Cover (LHC) is a government initiative that encourages people to take out health insurance earlier in life and maintain it.

If you don't take out hospital cover before you're 31, you'll pay a 2% Lifetime Health Cover 'loading' (basically, a fee).

Another 2% will be added for each year you go without hospital cover.

Getting eligible hospital insurance before you're 31 can save you money in the long run.

And if you're over 31, taking out hospital cover now will minimise the financial impact of LHC.

Why do I have to pay Lifetime Health Cover loading?

Lifetime Health Cover (LHC) loading is a 2% surcharge that exists to encourage people to take out hospital cover from a younger age.

The idea is that it will help reduce the burden on the public health system.

The Australian Government launched the LHC initiative in 2000.

How much will Lifetime Health Cover loading cost if I'm over 31?

If you don't have hospital cover by the 1st of July following your 31st birthday (also known as your 'LHC base day'), the lifetime loading fee will apply when you eventually take out eligible hospital insurance.

You'll get an extra surcharge on top of your premium for every year you don't take out hospital cover after your 31st birthday. Once you take out hospital cover, the applicable LHC loading is payable for 10 years.

Here's what percentage you'll have to pay on your premiums based on how old you are when first take out hospital cover:

The maximum LHC loading that anyone can pay is 70%, and the loading stops after 10 years of continuous hospital cover.

Are there any exceptions to Lifetime Health Cover loading?

You don't have to pay the Lifetime Health Cover loading if any of the following apply to you:

You're under 31.

You took out hospital cover within 12 months of registering for Medicare after moving to Australia.

You were born on or before 1 July 1934

You are a member of the Australian Defence Force and considered to have hospital cover (unless you're discharged from the ADF before you turn 31).

You hold a Department of Veterans' Affairs Gold Card.

The government also allows you 'Days of Absence'.

This is if you've previously held hospital cover but then stop for whatever reason.

An example of this would be if you decide to switch health insurers but only hold an extras policy with the new insurer.

You're allowed a total of 1094 Days of Absence (just under three years) during your lifetime.

If you use up your Days of Absence then you'll pay the LHC when you take out a new hospital cover policy.

You'll get an additional 2% loading each year on top of any loading you already have.

If you suspend your hospital cover due to a long overseas holiday, for example, or move overseas for a year or more, then this won't count towards your Days of Absence.

How can I prove my Lifetime Health Cover loading cost if I need to?

You'll need to prove what LHC loading you've been paying, if any, when you switch health funds .

You'll need to ask your old health fund for a Clearance Certificate that confirms your LHC loading status.

You then pass the certificate to your new health fund.

If you switch funds via Compare Club, we'll take care of all the paperwork, including your Clearance Certificate.

How does Lifetime Health Cover loading work if I move to a couples or family policy?

If you want to take out a couples or family policy, LHC loading is calculated by adding up your and your partner's individual LHC loading rates and dividing the sum in half (to get the average).

Here's an example:

Does switching health funds affect my Lifetime Health Cover loading?

In short, no. You can take a break from having hospital cover for a total of 1094 days without it having any effect on your LHC loading.

I moved to Australia after I turned 31. Do I need to pay Lifetime Health Cover loading?

Yes, but you won't have to pay immediately.

If you take out hospital cover within 12 months of registering for Medicare, you'll avoid LHC, no matter how old you are.

But if you miss that deadline then you'll have to pay a loading fee of 2% for every year you are aged over 30 and haven't held cover, no matter how old you are.

I'm moving overseas. Will this affect my hospital cover loading fee?

Provided you're living abroad for more than a year, then your LHC won't be affected.

You can also return to Australia for up to 90 days at a time and this won't count towards your Days of Absence.

If you're in Australia for longer than 90 days, then you're no longer considered to be overseas and this will eat into your Days of Absence.

Should I consider private health insurance to avoid Lifetime Health Cover loading?

The short answer is yes, if you think you may want to take out hospital cover at any time during your lifetime.

This will help you avoid high health insurance costs in the future.

The good news is that most health insurers offer lower-tier basic and bronze level hospital cover.

These are designed to be affordable and tax efficient and will also help you avoid the Medicare Levy Surcharge, if you earn over $90,000 or $180,000 as a couple.

What's more, many of these lower tier policies still come with some inclusions -- often for items such as dental surgery -- and you'll probably get emergency ambulance cover included as well.

This can be very helpful if you live in a state like Victoria, where residents have to pay for ambulance services.

But even some Basic and Bronze policies are better than others.

It's why it can be worth speaking to one of our specialists at Compare Club, who can make sure you're getting value for money.

How can I make sure I don't overpay on health insurance?

That's easy -- compare health insurance with us. This way you can get hospital cover that offers all the items you need at a price you can afford.

In the last decade, we've saved Australians, on average, $358.29 on their health insurance.

What's the best health insurance for avoiding the Lifetime Health Cover loading charge?

There is no 'best' health insurance if you're looking to avoid LHC loading, although you'll need to make sure you've taken out hospital cover, rather than just an extras cover policy.

Each fund will offer different levels of cover at a range of prices.

It's worth taking the time to compare your options.

This way, you'll be able to find the right cover for you and your budget.

We can help you find a policy that suits you needs and your bank balance from our panel of trusted insurers.

Lifetime Health Cover loading is relatively straightforward when you understand how it works.

But finding the right policy can still be complicated, which is why it's worth comparing health funds.

And if you think you'll ever need hospital cover, it pays to take out a policy sooner rather than later!

This guide is opinion only and should not be taken as medical or financial advice. Check with a financial professional before making any decisions.

Chris Stanley is the sales & operations manager of health insurance at Compare Club. With extensive experience and expertise, Chris is a trusted leader known for his deep understanding of health insurance markets, policies, and coverage options. As the sales & operations manager of health insurance, Chris leads a team of dedicated professionals committed to helping individuals and families make informed decisions about their health insurance needs.

Meet our health insurance expert, Chris Stanley

Chris's top health insurance tips

Australia’s public health system is world-class, but wait times for public hospitals can be long, inconvenient - and leave you living in constant pain while you wait.

An appropriate private health insurance policy can speed up your surgery, relieving your pain sooner.

Family health cover means your children are covered under the same policy as you.

Many health insurance policies come with a 12-month waiting period for pregnancy-related cover, so it’s a good idea to get a family policy organized well before starting your family. This means your child will be covered from birth until at least their early twenties (depending on which health fund you select).

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