Lifetime Health Cover

What is Lifetime Health Cover?

Why was Lifetime Health Cover introduced?

How does Lifetime Health Cover affect members of the ADF?

How am I affected if posted for overseas employment?

Will I still be able to vary the level of my private hospital insurance cover?

How will Lifetime Health Cover affect me if I wish to switch between funds?

What is Lifetime Health Cover?

Lifetime Health Cover is a Government initiative to encourage you to take out private hospital insurance earlier in life, and to maintain your cover.

The initiative rewards loyalty by offering lower premiums if you take out hospital cover early in life.  You benefit by maintaining these premiums throughout your life.

If you take out hospital cover when you are 31 years old or more, you will pay a 2 per cent loading on top of your premium for every year that you take out hospital cover.

For example, if you join a health fund at 40 you will pay 20 per cent more than someone who joins at the age of 30.  The maximum loading you can be required to pay is 70 per cent, payable by people who first take out hospital cover at age 65 or older.

To obtain an entry age of 30, you must have hospital cover as part of your policy.

Why was Lifetime Health Cover introduced?

The Commonwealth Government initiated Lifetime Health Cover to address the declining number of Australians taking up private health insurance prior to July 2000.

The low percentage of Australians with private hospital cover created unsustainable pressure on the public health system.  This scenario resulted in increased Medicare costs, and an unbalanced health care system that was heavily weighted towards the public system. 

The goal of introducing Lifetime Health Cover was to create a better balance between the private and public sectors.

How does Lifetime Health Cover affect members of the ADF?

Special provisions apply to ADF members because health care is provided as a condition of service.

If you were a member of the ADF prior to the grace period (1 July 1999 to 30 June 2000), at discharge, you will have an Entry Age of 30.  You can hold that Certified Entry Age for up to two years after discharge. 

If you joined the ADF during the grace period, you need to remain in the ADF or obtain hospital cover after discharge until 1 July 2001, to have an Certified Entry Age of 30. 

However, if you joined the ADF after 1 July 2000, you will have an Certified Entry Age equal to the age at which you joined the ADF.

How am I affected if posted for overseas employment?

As a member of the ADF who is posted overseas, you may suspend your membership for a time, with the written agreement of Navy Health.

Periods of suspension do not count towards the 1094 days of cumulative absence that is allowed before a members Certified Entry Age is affected.

Will I still be able to vary the level of my private hospital insurance cover?

People will still be able to upgrade or downgrade their hospital cover under Lifetime Health Cover without affecting their Certified Entry Age.

How will Lifetime Health Cover affect me if I wish to switch between funds?

All health funds are obliged to recognise the Certified Entry Age of any contributor wanting to transfer from another fund.

For example, if your Certified Entry Age is 30 and you wish to transfer to another fund, your Certified Entry Age of 30 must be recognised by the new fund, ensuring that you pay that funds base rate.