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Guides / Lifetime Health Cover Loading

Lifetime Health Cover Loading Explained

Updated March 2026 · 7 min read

Lifetime Health Cover (LHC) loading is a government initiative that encourages Australians to take out private hospital cover earlier in life. If you do not take out hospital cover by the relevant deadline, you pay a loading (surcharge) on top of your hospital insurance premiums for every year you delay.

How LHC Loading Works

Your LHC base day is the later of 1 July 2000, or the 1 July following your 31st birthday. If you do not hold hospital cover by your base day, you accumulate 2% loading for each year you are without cover.

The maximum loading is 70%. This means if you are 66 years old and have never held hospital cover (35 years past your base day), you would pay 70% more on your hospital premiums compared to someone the same age without loading.

Quick example

If your base day was 1 July 2015 and you first take out hospital cover on 1 July 2025, that is 10 years without cover. Your LHC loading would be 10 x 2% = 20%. On a $150/month hospital policy, you would pay an additional $30/month ($180/month total).

LHC Loading by Years Delayed

Years without cover after base dayLHC LoadingExtra on $150/mo policy
00%$0
510%$15/mo
1020%$30/mo
1530%$45/mo
2040%$60/mo
2550%$75/mo
3570% (max)$105/mo

How to Remove LHC Loading

LHC loading is removed after you have held hospital cover continuously for 10 years. The 10-year clock starts from the date you first take out an eligible hospital insurance policy. After 10 continuous years, your loading drops to 0% and you pay the standard premium.

During those 10 years, you must maintain hospital cover without a break of more than 1,094 consecutive days (approximately 3 years). A gap longer than 1,094 days will reset your loading calculation. Shorter gaps are permitted and will not reset the clock.

LHC Exemptions

New migrants

If you are a new migrant to Australia, you have 12 months from the date you first register for Medicare or become eligible for full Medicare benefits to take out hospital cover without incurring LHC loading. This applies regardless of your age when you arrive in Australia.

Australian Defence Force

Current and former members of the Australian Defence Force may be exempt from LHC loading for periods of service. Specific rules apply depending on the period and type of service.

Under 31

If you are under 31, LHC loading does not apply to you yet. You have until the 1 July following your 31st birthday to take out hospital cover without any loading. Taking out cover before your base day means you will never accumulate loading (as long as you maintain continuous cover).

Frequently Asked Questions

When does my LHC base day start?
Your LHC base day is the later of 1 July 2000 or the 1 July following your 31st birthday. For example, if you turned 31 on 15 March 2020, your base day is 1 July 2020. If you do not take out hospital cover by that date, LHC loading begins to accumulate.
Does LHC loading apply to extras-only cover?
No. LHC loading applies only to the hospital component of your private health insurance. If you hold extras-only cover without hospital cover, loading will still accumulate. You need to hold hospital cover (or combined cover that includes hospital) to stop loading from increasing.
Can I switch health funds without resetting my LHC loading removal period?
Yes, as long as you maintain continuous hospital cover. You can switch between funds without restarting the 10-year removal clock. However, if you have a gap of more than 1,094 consecutive days (approximately 3 years) without hospital cover, your loading is recalculated based on the new period without cover.
I am a new migrant. Do I get an exemption from LHC loading?
Yes. If you are a new migrant to Australia, you have 12 months from the date you first register for Medicare (or become eligible for full Medicare benefits) to take out hospital cover without incurring LHC loading. This applies regardless of your age at arrival.
Is LHC loading applied before or after the PHI rebate?
LHC loading is applied to the base premium first, then the government rebate is calculated on the loaded premium. This means the rebate partially offsets the loading, but you still pay more than someone without loading on the same policy.

Compare hospital cover

See premiums from 34 health funds, including policies with low excess to minimise your total cost with LHC loading.

Compare hospital cover

General information only. This is not financial advice. LHC rules are set by the Australian Government and may change. For personalised information about your LHC loading status, contact your health fund or visit the Private Health website (privatehealth.gov.au).