Government Legislation changes to Lifetime Health Cover
From the 1st of July 2013 the Australian Government Private Health Insurance Rebate will no longer be paid on any Life Time Health Cover (LHC) loading applied to the cost of a private health insurance policy.
Please note Life Time Health cover loadings are not paid by everyone. It is only applied as a penalty to individuals who have not taken out and/or maintained private health insurance from the year they turned 31. For more information about LHC loadings click here.
Please see below example (for those affected) – how the removal of the Rebate from LHC loading will be calculated:
Your hospital cover costs $100 per month.
Your Australian Government Private Health Insurance Rebate is 30%
Your LHC loading is 20%
Before 1 July 2013
$100 + 20% (LHC) = $120
$120 – 30% Rebate = $84 (premium payable)
After 1 July 2013
$100 – 30% Rebate = $70
$70+ ($100 original premium x 20% LHC loading= $20) = $90 (premium payable)
The additional cost to you is now $6 per month.
If you are affected by these changes you would have received a letter from ACA Health by now and if you are on Direct Debit we have already adjusted your amount from the 20/07/2013.
If you require further information about these changes or other Life time Health Cover matters please give us a call or call the Life Time Health Cover Hotline on (free call) 1800 307 446