What is Lifetime Health Cover loading?

Lifetime Health Cover (LHC) loading is an additional percentage added to your private hospital insurance premium if you don't take out hospital cover by 1 July after your 31st birthday. The loading is 2% for each year you are aged over 30 without hospital cover. For example, if you first take out hospital cover at age 40, you will pay a 20% loading on top of your base premium (2% x 10 years). The loading is designed to encourage Australians to take out hospital cover earlier in life.

How much is the LHC loading?

The LHC loading is 2% of your hospital insurance premium for each year you are aged over 30 without hospital cover, up to a maximum of 70%. For example: if you're 35 and have never had hospital cover, your loading is 10% (5 years x 2%). If you're 45, it's 30% (15 years x 2%). If you're 65 or older, the maximum loading is 70% (35 years x 2%). The loading applies only to the hospital component of your premium, not extras cover.

How long does the loading last?

Once you take out hospital cover and start paying the LHC loading, you must maintain continuous hospital cover for 10 consecutive years before the loading is removed. If you drop your hospital cover during that 10-year period, the loading will reset and may increase further based on any additional years without cover. After the 10-year continuous cover period, the loading is removed entirely and your premium drops to the base rate.

Can I avoid the LHC loading?

Yes. You can avoid the LHC loading entirely by taking out private hospital insurance before 1 July following your 31st birthday. If you're an overseas migrant, you have 12 months from your Medicare registration date to take out hospital cover without incurring a loading, regardless of your age. If you already have a loading, the only way to remove it is to maintain continuous hospital cover for 10 years. There is no way to pay a lump sum or otherwise reduce the loading period.

Lifetime Health Cover Loading Calculator

Calculate your Lifetime Health Cover (LHC) loading based on your age. See the 2% per year penalty for delaying hospital cover after 30 and the total extra cost over 10 years.

Last verified: 5 May 2026

How much does Lifetime Health Cover loading cost?

If you don't hold private hospital cover by 1 July after your 31st birthday, a 2% loading is added per year you delay, up to a maximum of 70% (35 years over 30). Loadings apply to the hospital portion of the premium only — not extras. Once you start paying, you must keep continuous hospital cover for 10 years before the loading is removed; dropping out mid-period restarts the clock and can increase the loading further. Migrants get 12 months from Medicare enrolment loading-free. Source: privatehealth.gov.au.

Worked example. First taking hospital cover at age 40 → 20% loading (10 years × 2%). On a $1,800/yr hospital policy that's an extra $360/yr ≈ $3,600 over the 10-year loading period. Age 50 sign-up → 40% → $720/yr extra → $7,200 over 10 years. Age 65+ first sign-up → 70% (capped) → $1,260/yr extra → $12,600 over 10 years. After 10 years of continuous cover, the loading drops to 0%. The cheapest way to avoid it: take out a basic hospital-only policy with a $750 excess the year before you turn 31.

General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.

Lifetime Health Cover Loading Calculator

How much does Lifetime Health Cover loading cost?

Related reading

Related Tools