Did you know... Lifetime Health Cover (LHC) loading is not a tax but rather a financial penalty, enforced by the Federal Government in 2000 and applied to Australian residents aged 31+ who choose to purchase private hospital insurance later in life. It was implemented to encourage Australians to take out hospital cover at a younger age, essentially recognising the length of time you’ve held a private hospital policy and rewarding that loyalty with offering lower premiums. In this clip from Everyday Health TV, HIF member Jamie Scoringe explains how he avoided being hit with Lifetime Health Cover loading by purchasing private hospital insurance before his 31st birthday.
Jamie Scoringe: Hi, I’m Jamie and I’m an Accountant. I have four beautiful children and a busy lifestyle. Well I first took out Extras Cover in the 90’s to cover my optical benefits but when the government decided to introduce the Lifetime Health Cover loading I realised that I needed to increase that to cover Hospital as well. I saw my parents suffer with the public health system and I knew once I got older I was really going to need that cover, so I made sure to take out the Hospital cover before I turn 31. Well I am now 45 and because I took that hospital cover I’m now saving nearly $500 a year, plus I’ve got the peace of mind that my family are fully covered.