Certified Age of Entry Explained

What does Certified Age of Entry mean? 

Certified Age of Entry (CAE) is the age a health fund assigns a person when first purchasing private Hospital cover. It’s important to note that your CAE is not indicative of your biological age. 

When was Certified Age of Entry introduced?

Australian citizens and residents without private health insurance were given an introductory grace period commencing 1 July 1999 and ending on 15 July 2000 to join a health fund and lock in a certified age at entry of 30 prior to the commencement of Lifetime Health Cover Loading.

How is my Certified Age of Entry assigned? 

If you take out private Hospital cover before 1 July following your 31st birthday, you will have a CAE of 30. This entitles you to the lowest base rate premium for as long as you continue to hold private hospital cover. 

How is Lifetime Health Cover Loading (LHC) calculated? 

Lifetime Health Cover is calculated based on your CAE. For every year over the age of 30 that you don’t have private hospital cover, a 2% loading is applied to the cost of your insurance (and increases each year until it reaches 70%). For example, a single 37 year old would pay 14% LHC loading. For couples and families however, your loading is initially calculated based on your respective dates of birth and then halved. For example, a couple aged 33 and 36 years would have generated a combined loading of 18% initially (6% + 12%), so the final loading that is applied to their joint policy is 9%. 

Can Lifetime Health Cover Loading be removed?

Yes, but only if you've held private hospital cover continuously for a period of ten years.

What if I’m over 31 and haven’t held private hospital cover? 

HIF will adjust your CAE to reflect the correct age. For example, if you take out hospital cover at the age of 50, then your CAE will be adjusted from 30 to 50 and the applicable Lifetime Health Cover loading of 40% will apply. 

What if I’m over 31 and I’ve held hospital cover, but not continuously? 

If you’ve indicated on your original application with HIF that you have; 

  • Held continuous private hospital cover since 1 July 2000 or since my 31st birthday
  • Held private hospital cover on occasion (s) since 1 July 2000 or since my 31st birthday, but not continuously 

HIF will initially assume that you took out private hospital cover prior to the introduction of Lifetime Health Cover Loading therefore your CAE will be locked in at the lowest possible age of 30.

As soon as HIF receives your clearance certificate, your CAE will be reviewed and/or adjusted and a letter to confirm the applicable Certified Age of Entry and Lifetime Health Cover Loading will be sent out to your nominated postal address.  

Still confused?

If you’d like to find out more about Lifetime Health Cover Loading or see how it may effect you, please visit this article. Alternatively, get an online quote now to see how much loading you may (or may not) incur.

Category: Member Information
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