How to avoid Lifetime Health Cover Loading

bananapeel · August 2013

This post is for new migrants who are over 30 years old.

Lifetime Health Cover (LHC) is a Government initiative designed to encourage people to take out hospital insurance earlier in life and to maintain their cover.

If you take out private insurance after 30 years old, then you will pay the Lifetime Health Cover loading on top of the premium of any hospital cover you may later purchase.

If you do not have hospital cover with an Australian registered health fund on the 1st of July following your 31st birthday and then decide to take out hospital cover later in life, you will pay a 2% loading on top of your premium for every year you are aged over 30.

For example, if you take out hospital cover at age 40 you will pay 20% more than someone who first took out hospital cover at age 30. The maximum loading is 70%.

Once you have paid a LHC loading on your private hospital insurance for 10 continuous years, the loading is removed as long as you retain your hospital cover.

If you are a new migrant to Australia aged over 31, then you have one year from the date you were registered for Medicare benefits to purchase private hospital cover without incurring a loading. You can check with Medicare to confirm what date you registered for LHC purposes.

If you know you have medical conditions that may require medical attention later, get a private health insurance as early as possible.

I'd like to share my personal experience. We arrived Sep 2010. I got my private health insurance from Medibank 12 Jan 2011. I had no signs nor symptoms but back in the Phils I had an irregular ECG result. I saw a cardio in Jul 2011. I passed the stress test with flying colours. My ECG results were good. The cardio was happy with the results until I told him of my strong family history of heart problems. He became a "healthy" paranoid. He booked me for a CT coronary angiogram. He was not happy with the results so he booked me for the conventional angiogram. All these were covered by Medicare. After the angiogram, a NSW health worker talked to me as I was lying in the recovery room. She told me I had 3 blocked arteries and I need a bypass. Coming from a family whose history in heart problem was very strong, my only question was "is it covered?". The reason was when my brother had his bypass in Manila many years ago, he had to sell his house and lot. I was told Medicare covers for the expense. But because I have Medibank, I went to a private hospital, chose my own surgeon (one of the best in Australia as recommended by my cardio), chose my own schedule (because my condition was not an emergency situation) and I only paid for $275 when I got admitted to the hospital. $250 as my share per my Medibank plan and $25 for Foxtel. All else was paid for by Medicare and Medibank. No gap. I had a triple heart bypass in Jan 2012. If I were in the Philippines, I would not have undergone the surgery because of the cost. Btw, my surgery was a week after the 1 year waiting period since I got the insurance. Who would have thought I would need it that soon? You'll never know.

If I had no private health, I would still be able to get the surgery at no cost. The only disadvantage is, I would have been in a public hospital, i cannot choose my surgeon and I will have to wait until I can get a schedule.

Hope you learn something from my experience. Thanks for reading.

lock_code2004 · August 2013

@bananapeel - thanks for sharing this info..
im sure you are back on track now...

bananapeel · August 2013

thanks @lock_code2004. i am. i was only away from work for 12 weeks, all paid leave. this was one of the blessings of Australia to me. cheers.

corleone · August 2013

Awesome

bananapeel · August 2013

@corleone, ang haba ng post ko one word lang ang comment mo? hehe

)

GoToWaOZ · August 2013

@bananapeel -Thanks for sharing po! Very helpful po sa amin ang topic na ito at ang experience ninyo since over 30 & 40 na po kami when we move to Oz next year. Definitely need to count these costs dahil priority po namin palagi ang private health insurance. It really pays to be prepared :-bd

bluemist · September 2013

@bananapeel thanks po sa mga shinare ninyo mga experiences niyo.. malaking tulong po ito sa mga papunta at mga nagsisimula po diyan sa Australia.

lock_code2004 · September 2013

thanks @lock_code2004. i am. i was only away from work for 12 weeks, all paid leave. this was one of the blessings of Australia to me. cheers.

awesome.. if you dont mind.. anu pong private insurance company ang mai-suggest nyo?
thanks.

bananapeel · September 2013

no worries @bluemist. paying it forward, dami ko din natutunan before sa old forum.

@lock_code24, i recall before ako nag signup, sa iselect.com.au ako nagcompare ng rates. and finally chose Medibank kase me tie up ang company namin with them kaya me discount. have a look at iselect website and compare mo kung anong requirements mo. i heard HCF is good as well.

ozzie · September 2013

guys share ko lng,

this is applicable to my case na mag iinitial entry palang. i was thinking of not registering with Medicare muna because of the 12-month period na klangan na makakuha ng private insurance pra di magkaroon ng LHC

excerpt from their website : http://www.privatehealth.gov.au/healthinsurance/incentivessurcharges/lifetimehealthcover.htm

New migrants to Australia - as a new migrant to Australia, if you are aged 31 or over, you will not have to pay a Lifetime Health Cover loading if you take out private hospital insurance within 12 months of being registered for Medicare. However if you are subsequently overseas on the day 12 months after your Medicare registration, and if you registered with Medicare on or after 1 July 2009, then you will not have to pay a Lifetime Health Cover loading if you purchase hospital cover within 12 months of your return to Australia.
After this time you will have to pay 2% more for each year you are aged over 30 when you take out private health insurance.

heyits7me_mags · July 2014

@bananapeel, pano po noong na grant kayo Ng visa did DIBP required you to have private insurance? Kasi po meron din po akong heart blockage. Last month po na angiogram npo ako. Nkita po Ng doctor 50-60% blockage on my right arteries. Hindi po malagyan ng stent Kasi insignificant pa raw po sabi ng cardiologist ko. Ang pwede raw lagyan ay Yung 70-100% blocked. I am just wondering kung i-grant pa rin kmi ng visa bec. of this and if yes, will the immigration require private health insurance? Thanks for sharing po pala, bka po nasagot nyo ang questions ko.

heyits7me_mags · July 2014

Pano po payment Ng private insurance dyan usually ang magkano total coverage. Just give me po Ng estimate, thanks!

kremitz · September 2014

My husband will be turning 31 this month. Dapat napo ba sya kumuha ng private insurance before ng bday nya to avoid yung lifetime health cover loading? Or pwede pa before july 1 next year? Then kahit anong private health insurance n plan po ba kunin ok lang?

cholle · September 2014

Salamat @bananapeel for starting this thread! Relevant din ito sa akin since I am arriving immediately after I turn 31 this year (sayang!). We've always had personal insurance in Singapore and we're definitely getting one when we move to Australia too.

Sa mga recent migrants, baka may pwedeng mag-share ng related experiences nila rito.

TasBurrfoot · September 2014

Salamat @bananapeel for starting this thread! Relevant din ito sa akin since I am arriving immediately after I turn 31 this year (sayang!). We've always had personal insurance in Singapore and we're definitely getting one when we move to Australia too.

Sa mga recent migrants, baka may pwedeng mag-share ng related experiences nila rito.

Eto @cholle,

If you are a new migrant to Australia aged over 31, then you have one year from the date you were registered for Medicare benefits to purchase private hospital cover without incurring a loading. You can check with Medicare to confirm what date you registered for LHC purposes.

kremitz · September 2014

@tasburrfoot how about sa case ng hubby ko. Mag 31 plng sya this month. When sya dapat kumuha ng private insurance?

cholle · September 2014

@TasBurrfoot Thanks! Got that too from the link posted by @ozzie. Will defo look up private health cover options for when we move

TasBurrfoot · September 2014

@tasburrfoot how about sa case ng hubby ko. Mag 31 plng sya this month. When sya dapat kumuha ng private insurance?

i dunno... as i don't know your situation (i.e when kayo dumating, etc); to reiterate:

If you are a new migrant to Australia aged over 31, then you have one year from the date you were registered for Medicare benefits to purchase private hospital cover without incurring a loading. You can check with Medicare to confirm what date you registered for LHC purposes.

hope this helps!

kremitz · September 2014

Ok thanks @tasburrfoot

dakz · February 2015

hi po, question what if yong kinuha mo na private health insurance ay extras lang ang cover at walang hospital cover, magbabayad pa rin ba kami ang LHC penalty? Iniisip kasi namin eh covered naman ng medicare ang hospital so yong mga extras (dental, glasses, ambulance, etc) nlng ang kinuha namin.