How long do you have to pay Lifetime Health Cover loading?

If you bought private hospital insurance after your base day, you'll need to hold cover for 10 continuous years before the fee is removed. For example, if you first took out hospital cover when you were 40 years old, you'd be paying a loading of 20%. If you held your cover continuously until you turned 50, the loading would then be removed.

Does the LHC apply to extras cover?

No, the LHC does not affect the cost of extras cover. You'll only pay the LHC loading on hospital health insurance products.

What if I need a break in cover?

Once you take out a policy, you're allowed a certain number of days cover-free without affecting your LHC. These are known as "days of absence" and you're allowed a total of 1,094 days (almost three years) across 10 years. Here are some of the permitted reasons for these days of absence: Temporary gaps in cover. If you're switching from one health fund to another, any uncovered period counts towards your days of absence. Temporarily suspending membership. If your fund approves a suspension for overseas travel, that period is not deducted from your days of absence. Going overseas for an extended period. If you cancel your cover to travel overseas for a year or more, no days of absence are deducted. You can even travel back to Australia and still be considered overseas, providing your stay doesn't exceed 90 days.

How does LHC loading work for couples?

The Lifetime Health Cover loading for couples is worked out based on an average of each person's rate. For example, if one of you has to pay a 10% loading and the other is on 5%, a couples or family policy will come with a 7.5% loading.

Lifetime Health Cover Loading Explained

Lifetime Health Cover loading is a penalty that applies to anyone who takes out private health insurance after their 31st birthday.
The loading increases your premium by 2% for every year you don't have private health insurance over the age of 30.
Good news is it's avoidable – just take out a hospital policy before you turn 31.

What is Lifetime Health Cover loading?

The Lifetime Health Cover (LHC) loading adds a 2% fee for every year you don't have hospital cover over the age of 30. It's a government initiative designed to encourage Aussies to buy private health insurance sooner rather than later. Basically, it means you're charged a penalty if you only buy health insurance when you're older.

The LHC loading kicks in shortly after your 31st birthday. So if you wait until you're 40, you'll be charged an extra 20% on top of your premium; if you wait until you're 50, it'll be 40% extra, and so on. The maximum penalty anyone can be charged is an additional 70% on top of their premium. That penalty stays in place until you've held private health insurance for 10 continuous years.

If you never get private health insurance, you'll never have to pay LHC loading. But remember, almost half of all Australians have health insurance and many of them only decide to buy it later in life, so you might end up changing your mind further down the line.

How to avoid Lifetime Health Cover loading

Avoiding the Lifetime Health Cover loading is pretty straightforward – you just need to take out hospital cover by 1 July following your 31st birthday.

Getting close to 30?

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Will the LHC actually save me money in the long run?

The LHC may seem like a big additional expense but Australian Medical Association (AMA) data suggests Australians who take it out earlier in life don't actually save money in the long run. You're still better off taking it out until later in life.

Expert insight

"If you're considering private health insurance, it's important to know how it impacts your taxes. The Medicare Levy Surcharge (MLS) is an additional tax for higher-income earners without private health cover. If you get insurance part way through the year, the MLS is only charged for the days you were without coverage. For example, if you're uninsured for half the year, you'll pay only half the MLS. This apportioning can significantly reduce your surcharge, making it a smart move to get covered sooner rather than later."

Nicole Kelly

CEO & founder, TaxTank

Lifetime Health Cover loading deadline

For most people, the Lifetime Health Cover loading deadline is 1 July, immediately following your 31st birthday. This is known as your "base day". However, your base day may be different if you were overseas on this day, you were born before 1 July 1934 or if you're a recent migrant to Australia.

If you are a new migrant and are over the age of 31, you will have to get hospital cover within 12 months of being registered for full Medicare benefits in order to avoid LHC loading.

How much does Lifetime Health Cover loading cost?

The cost of Lifetime Health Cover loading depends on how long you've gone without private health insurance and what level of cover you choose.

The table below uses some of the lowest prices for each tier from major Australian health funds. Without taking annual price hikes into account, it shows how much your premiums could increase if you wait to buy health insurance.

	Bought at 30	Bought at 40	Bought at 50	Bought at 60
Basic	$78	$93.60	$109.20	$124.80
Bronze	$90	$108.00	$126.00	$144.00
Silver	$113	$135.60	$158.20	$180.80
Gold	$242	$290.40	$338.80	$387.20

Exemptions for the Lifetime Health Cover loading

Exemptions for the LHC loading include:

If you were born before 1 July 1934
If you are overseas on 1 July following your 31st birthday
If you are over 30 and were overseas on 1 July 2000
If you are a member of the Australian Defence Force
If you are a Department of Veterans' Affairs (DVA) Gold Card holder

Lifetime Health Cover loading calculator

You can use the Australian government's Lifetime Health Cover loading calculator to work out how much you'll pay. It also has a Ten Year Continuous Cover calculator if you want to work out when you'll stop paying the charge.

How much does health insurance cost?

We ask hundreds of Australians what they're paying for health insurance every month. Here's what their bill looked like in May 2025.

Extras only: $102
Basic: $121
Bronze: $148
Silver: $205
Gold: $249

Price based on 500+ responses for single hospital or extras insurance.

Frequently asked questions

If you bought private hospital insurance after your base day, you'll need to hold cover for 10 continuous years before the fee is removed. For example, if you first took out hospital cover when you were 40 years old, you'd be paying a loading of 20%. If you held your cover continuously until you turned 50, the loading would then be removed.
Once you take out a policy, you're allowed a certain number of days cover-free without affecting your LHC. These are known as "days of absence" and you're allowed a total of 1,094 days (almost three years) across 10 years. Here are some of the permitted reasons for these days of absence:
- Temporary gaps in cover. If you're switching from one health fund to another, any uncovered period counts towards your days of absence.
- Temporarily suspending membership. If your fund approves a suspension for overseas travel, that period is not deducted from your days of absence.
- Going overseas for an extended period. If you cancel your cover to travel overseas for a year or more, no days of absence are deducted. You can even travel back to Australia and still be considered overseas, providing your stay doesn't exceed 90 days.

Thank you for your feedback!

To make sure you get accurate and helpful information, this guide has been edited by Tim Bennett as part of our fact-checking process.

Written by

Gary Ross Hunter

Journalist

Gary Ross Hunter has over 6 years of expertise writing about insurance, including life, health, home, and car insurance. Having reviewed hundreds of product disclosure statements and published over 800 articles, he loves simplifying complex insurance topics for everyday readers. Gary has contributed to major outlets like Yahoo Finance, The Sydney Morning Herald, and news.com.au, and holds a Bachelor of Arts (Honours) in English Literature from the University of Glasgow, along with a Tier 2 General Advice certification, ensuring his work adheres to ASIC’s RG146 standards. See full bio

Gary Ross's expertise

Gary Ross has written 594 Finder guides across topics including:

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Co-written by

Nicola Middlemiss

Journalist

Nicola Middlemiss is a journalist with nearly a decade of experience in personal finance and insurance. She has contributed to Domain, Yahoo Finance, Money Magazine and Insurance Business Australia, offering in-depth insights into commercial insurance in the Australian market. Nicola holds a Bachelor’s degree in English from the University of Leeds and a Tier 1 General Insurance (General Advice) certification, which complies with ASIC standards. See full bio

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Nicola has written 250 Finder guides across topics including:

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Personal insurance, including car, health, home, life, pet and travel insurance
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2 Responses

HelenJune 6, 2023

I ceased my health insuance in 2009 when I was 61 after having had it all my adult life. I wish to rejoin now 13 years later . Do I pay a percentage of the Lifetime Health Cover loading?
If so what would that cost me per year?

Finder

JamesJune 6, 2023Finder

Hi Helen,

Thank you for your message.

Under the government’s rules – which you can read more about on the PrivateHealth.gov.au website – it is likely you’ll have to pay a LHC loading when you take out hospital cover. Your break in cover is quite a bit longer than 3 years, which means you won’t be within a “Days of Absence” allowance. This can exempt policyholders from loading increases for up to 1094 days (which is 3 years, minus one day).

Here is some further information from PrivateHealth.gov.au: “If … you have a total gap period of 1095 or more days – you will pay a LHC loading on rejoining hospital cover. The loading is an additional 2% on top of any previous loading, and will increase by 2% for every year after the 1094 days without cover.”

I hope this helps.

Best,

James

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Lifetime Health Cover Loading

The Lifetime Health Cover loading kicks in after you turn 31, but it’s avoidable with an $20 per week hospital policy.