What happens if I don't get health insurance before 31?
If you first take out hospital cover after the 1 July following your 31st birthday, you pay a Lifetime Health Cover loading. It is 2% for each year you are over 30, based on your age at the 1 July before you join, up to a maximum of 70%. The loading comes off after 10 continuous years of cover.
Your base day
Your base day is the 1 July following your 31st birthday. Hold hospital cover by then and you carry no loading, ever. Start later and the loading is set by how far over 30 you are.
How the loading is removed
The loading is not permanent. After 10 continuous years of holding hospital cover, it drops to zero. You can also be without cover for up to 1,094 days across your life without losing your status.
A worked example
Someone who first takes out hospital cover at age 40 pays a 20% loading, because they are 10 years over 30. On a hospital premium of $1,400 a year, that is about $280 extra a year until the loading clears.
The numbers, with sources
- Loading is 2% per year over 30, capped at 70%.privatehealth.gov.au
- Removed after 10 continuous years of cover.privatehealth.gov.au
- Lifetime days of absence allowance: 1,094.privatehealth.gov.au
General information only, not personal or financial advice. Full method on the methodology page.