What is Lifetime Health Cover (LHC) loading?

The Lifetime Health Cover (LHC) loading is a Government loading on your private hospital cover premiums. It was introduced on July 1, 2000 to encourage people to take out private hospital cover earlier and to maintain their cover.

Do I have to pay LHC loading?

If you take out hospital cover for the first time before July 1 after your 31st birthday, you won’t have to pay any LHC loading.

How does LHC work?

LHC is a 2% loading for every year you don't have hospital cover after you turn 30.

If you join a hospital cover now and you’re 35 years old, your LHC loading will be an extra 10% of your premium (2% x 5 years).

From the date it was introduced, anyone who joins a hospital cover of a registered health fund will be given a Certified Age at Entry (CAE) status. This CAE represents the age when you first took out hospital cover after 1 July, 2000.

If you joined a hospital cover before this date you were assigned a CAE of 30 and will pay the base rate (the lowest premium) for your hospital cover. If you joined after this date with a CAE of over 30, you will pay a 2% loading for each year your CAE is above 30 to a maximum loading of 70% at age 65.

Do you have to pay LHC forever?

LHC loading lasts for ten years. If you’ve paid LHC loading for ten consecutive years it will no longer apply from the first day after the last day of the ten year period.

What happens if I have to discontinue my insurance for a period?

We get that you might need to discontinue your membership for brief periods. LHC loading allows for a total of 1094 days absence before your CAE is affected. For any absences beyond the allowed period your CAE will increase by one year for every full year of absence. 

What if I suspend my membership?

Approved periods of suspension will not affect your CAE. If you need to suspend your Frank membership, contact us to discuss your options.

Does the loading apply to extras cover?

No, the LHC loading only applies to hospital cover.

Where can I get more information?

For more information on Lifetime Health Cover loading, visit the Government's LHC information page.

The detailed Lifetime Health Cover calculator can help you work out whether you’ll need to pay LHC based on your specific situation.