The aim of the Federal Government's Lifetime Health Cover (LHC) initiative is to encourage people to take out private health insurance hospital cover early in life. If you join earlier in life and continue private hospital cover, you will be rewarded with lower contributions than those who join later in life. HCI is required by the Federal Government to set hospital contribution rates based on the age a person first takes out hospital cover.
Certified age at entry
Each adult is assigned a "certified age at entry" for contribution rate setting purposes. People who do not have hospital cover on the 1st of July following their 31st birthday must pay a 2% loading on top of the "base rate" contribution for the hospital cover they wish to purchase. The "base rate" is the lowest contribution rate for the hospital cover chosen. For example, John turns 31 on 1st April 2005. If he purchases hospital cover by 1st July 2005, he will pay the base contribution rate. If he purchases hospital cover on 2nd July 2005, he will pay a 2% loading. If he further delays purchasing hospital cover, he will pay an extra 2% for each year he delays. The contributions for couples and families with two adult partners will be a combined rate which reflects the certified age at entry of each of the partners. The maximum loading is 70%. The loading applies only to hospital cover and not to extras. People born before 1st July 1934 are exempt from the provisions of LHC and can take out hospital cover at any time and only pay the "base rate" contribution level.
Permitted days without hospital cover
You are able to drop your hospital cover for a cumulative period of 24 months in your lifetime without affecting your certified age at entry. However, after the 24 months aggregated absence, your certified age at entry will be increased by one year for each additional 365 days of absence.
Periods of suspension
You may suspend your hospital cover in accordance with HCI's Rules. Periods of suspension do not count towards the 24 months period of absence that is allowed before your certified age at entry is affected. Call our friendly staff for a personal quote - Freecall 1800 804 950
