Lifetime Health Cover Loading (LHC)

What it is, why it matters, and how to avoid paying more than you need to.

What is Lifetime Health Cover loading?

Lifetime Health Cover (LHC) loading is an Australian Government initiative that encourages people to take out private hospital cover earlier in life. If you take out hospital cover after 1 July following your 31st birthday, you may need to pay more for your premiums – up to an additional 70%.
 
The aim? A healthier private system and a more sustainable public one.

How does the Lifetime Health Cover (LHC) loading works?

When you turn 31, the LHC clock starts.
  • Miss the deadline? You’ll pay 2% extra every year you’re over 30 when you take out hospital cover
  • Join at 40, and that’s a 20% loading
  • Join at 45, and that’s a 30% loading
  • The loading caps at 70%
The silver lining? Once you hold cover continuously for 10 years, the loading is removed.

How much you could be paying with the Lifetime Health Cover (LHC) loading

Using an example base premium of $170 per month, we’ve illustrated below how the LHC loading could impact how much you end up paying for the same cover.
Age when you first take out cover Base premium (before loading is applied) LHC loading What you end up paying
30 or under $170 0% $170
31 $170 2% $173
35 $170 10% $187
40 $170 20% $204
45 $170 30% $221
50 $170 40% $238
55 $170 50% $255
60 $170 60% $272
65+ $170 70% (maximum LHC loading) $289
Please note, the above table is for illustrative purposes only.

Who does the Lifetime Health Cover (LHC) apply to?

LHC applies to most Australian residents and citizens who are eligible for Medicare, but there are some exceptions.
 
You won’t pay loading if:
 
  • You are 31 or younger
  • You hold hospital cover before 1 July after your 31st birthday
  • You migrated to Australia recently, are over 31, and take out hospital cover within 12 months of receiving full Medicare eligibility
  • You were born on or before 1 July 1934
Extras and ambulance only cover doesn’t count
 
LHC loading only applies to hospital cover – not extras or ambulance only cover. So even if you hold an extras or ambulance policy, this won’t protect you from the LHC loading if you decide to get hospital cover later down the track.

How to avoid the Lifetime Health Cover (LHC) loading?

1. Take out hospital cover before you turn 31
This is the simplest way to avoid paying LHC loading.
 
2. Start with a basic policy
You don’t need comprehensive cover – even basic hospital cover locks in your base rate. You can always upgrade later.
 
3. If you’re already over 31, take action now
Getting cover today:
 
  • Stops your loading from increasing further
  • Starts the 10-year countdown to removing it entirely

Get cover and avoid LHC loading today

LHC loading can be easy to overlook, but the cost of delaying hospital cover is very real — and completely avoidable.
 
Whether you’re approaching 30 or revisiting your options later in life, taking out cover now puts you in control of your future costs.
 
Explore your cover options with AIA Health. Get a quote today

Frequently asked questions

No. You don’t need to stay with the same insurer to avoid the Lifetime Health Cover (LHC) loading.
 
If you already held eligible hospital cover before 1 July after your 31st birthday, you’ve already avoided LHC loading – and you can switch insurers at any time without affecting that.
 
If you did not hold eligible hospital cover before that date, LHC loading may apply when you take out hospital cover for the first time. Switching insurers later won’t reset or remove the loading – it will simply carry over to your new fund.

If you get eligible hospital cover before 1 July after your 31st birthday, you can still avoid paying the Lifetime Health Cover (LHC) loading.
 
If you get eligible cover after that date, you will need to hold eligible hospital cover continuously for 10 years before the LHC loading can be removed completely. 

Lifetime Health Cover (LHC) loading is an extra cost added to your private hospital insurance premium if you take out hospital cover after 1 July following your 31st birthday.
 
The Medicare Levy Surcharge (MLS) is an extra tax you pay if you earn above the income threshold and don’t have eligible private hospital cover.
 
Both are designed to encourage people to take up private hospital insurance and reduce pressure on the public system – but LHC affects your premium, while MLS affects your tax.

As a new permanent resident, your LHC Base Day is the later of:
 
  • 1 July after your 31st birthday, or
  • 12 months after you first registered for full (green) or interim (blue) Medicare benefits.
If you take out eligible private hospital cover within that 12‑month window, you won’t pay LHC loading. If you take it out later, you may pay a 2% loading for every year you’re over 30, capped at 70%.

You have 1,094 days (a little under 3 years) you can be without hospital cover in your lifetime before your LHC loading goes up.
 
If you suspend your cover:
 
  • It won’t use up any of your 1,094 days, and your LHC loading stays the same.
If you cancel your cover, and:
 
  • Go overseas for at least 1 continuous year, those days don’t count toward your 1,094‑day limit.
  • Stay in Australia, every day without cover counts toward the 1,094 days. If you exceed that limit, your LHC loading may increase when you rejoin.

For more information about the Lifetime Health Cover (LHC) loading, please visit the Private Health Insurance Ombudsman website.
 
You can also calculate your LHC loading using their Lifetime Health Cover calculators.