Lifetime Health Cover
- What is Lifetime Health Cover (LHC)?
- What MBF hospital cover options qualify me for LHC?
- Do I qualify for LHC if I only take out MBF Extras cover?
- What if my hospital cover lapses?
- Can I suspend my membership to avoid LHC loading?
- Is anyone exempt from the LHC loading?
What is Lifetime Health Cover (LHC)?
Lifetime Health Cover (LHC) is a Federal Government initiative that came into effect on 1 July 2000 to encourage Australians to take out private hospital cover. To avoid the LHC loading, you need to take out hospital cover by 30 June following your 31st birthday. Otherwise, your membership fees will increase by 2% each year you delay joining to a maximum of 70%.
Take out hospital cover as soon as possible to stop the loading from increasing. It will be frozen at the rate that matches your age on the 1 July prior to the date you join (known as the Certified Age at Entry (CAE)). As long as you maintain your hospital cover, your loading won't increase each year.
Examples:
- Paul turned 31 on 7 June 2004. He purchased hospital cover for the first time on 20 June 2004. On 1 July 2003, Paul's CAE was 30, so he does not pay a loading on his premium.
- Kate turned 39 on 6 March 2004. She purchased hospital cover for the first time on 10 June 2004. On 1 July 2003, Kate's CAE was 38. Her loading will be 16%, which is a 2% loading for each year she is aged over 30 before she purchased hospital cover.
What MBF hospital cover options qualify me for LHC?
All MBF hospital cover options, except Overseas Visitors' Cover and Corporate Overseas Visitors' Cover, will qualify you for LHC.
Do I qualify for LHC if I only take out MBF Extras cover?
No. You must have hospital cover.
What if my hospital cover lapses?
If you have locked in your certified age of entry, you can have 1,094 cumulative days (less than three years) without hospital cover before the loading will be applied or increased.
Days without hospital cover that don't count towards your 1,094 days include when you:
- Validly suspended your membership in accordance with Fund rules; or
- Are overseas (including Norfolk Island) for a continuous period of more than one year and have not returned to Australia for a period of more than 90 days.
Can I suspend my membership to avoid LHC loading?
Yes. Under certain circumstances you can suspend your membership before travelling overseas without affecting your LHC loading. Call MBF on 131 137 to check your situation.
Is anyone exempt from the LHC loading?
Yes. Anyone born on or before 1 July 1934 has no LHC loading, except where their partner is born after 1 July 1934.
Other people may have different rules. When you join MBF, please let us know if you consider one of the following provisions applies to you:
- Some refugees
- People who hold or have held a Veterans Gold Card after 30/6/99
- Australian citizens and/or holders of permanent visas who were overseas for the whole of the period between 1/1/00 and 1/7/00 inclusive
- Australian citizens and holders of permanent visas who were overseas on 1/7/00, or were residents of another country on and after 1/7/00, and have not been back to Australia for a period of more than 90 days
- Australian citizens and holders of permanent visas who are absent from Australian on the day they turn 31 (provided this is after 1/1/00) and have not since returned to Australia for a period of 90 days or more
- Members of the Australian Defence Force (including their dependants) on continuous full-time service whose health services are provided by the Defence Force
- A person for whom health services are provided by the Australian Antarctic Division of the Department of Environment and Heritage
- Migrants who became eligible for Medicare benefits on or after 23/4/04
- Migrants who became eligible for Medicare benefits after 30/9/99
- New Zealand citizens who became eligible for Medicare on or after 23/4/04
- New Zealand citizens who became eligible for Medicare benefits after 30/9/99
For further details, visit the Australian Government Department of Health and Ageing.