The Lifetime Health Cover loading (LHC loading) is an extra cost applied to the price of hospital insurance, which makes it more expensive. … It’s designed to encourage people to buy hospital insurance earlier in life and stay covered.

How does LHC loading work?

Once you turn 31, a 2% loading is added to your hospital cover premium for every year you’re without hospital cover. This is called the Lifetime Health Cover (LHC) loading. To avoid this loading, you can take out hospital cover by July 1st following your 31st birthday, which is called your base day.

How much is the LHC loading?

The LHC loading caps out after 35 years, at a maximum of 70% of annual premiums. For example, a person who did not take out hospital cover until they reached 40 years of age would potentially pay a premium loading of 20% (10 years multiplied by 2%) each year.