Lifetime Health Cover

What is Lifetime Health Cover?

Lifetime Health Cover is a Federal Government initiative that started on 1 July 2000.  It is designed to reward people for taking out hospital cover at an early age and maintaining that cover throughout their lifetime.

How does it apply to me?

If you don’t have private hospital cover by 1 July following your 31st birthday, you will pay an additional 2% loading on your health insurance contributions each year you delay taking out hospital cover after the age of 30.

The maximum loading a person can be required is 70%, payable by people who first take out hospital cover for the very first time at age 65 or older.

Provisions and Exemptions

There are a number of provisions that could apply to you to avoid or delay the application of the Lifetime Health Cover loading, such as:

  • If you were born on or before 1 July 1934 you are exempt from Lifetime Health Cover and are able to join at any time without having to pay a loading on your premium.
  • Australian Citizens and permanent residents currently living overseas or who have lived overseas at anytime between 1 January 2000 to 1 July 2000 inclusive or on July 2000.
  • Recent migrants who have become eligible for Medicare Benefits (including migrants from New Zealand), as long as they take out private health insurance within the first 12 months of gaining Medicare eligibility
  • Members of the Australian Defence Force

You are able to drop your hospital cover for a cumulative period of 1093 days during your lifetime without affecting your loading.  For every 365 days without cover after that, your loading will increase by 2%.

For more information on Lifetime Health Cover and the provisions that apply, please visit the Lifetime Health Cover section of the Australian Department of Health and Ageing website.