What’s in a name? Lifetime Health Cover loading if it’s Matthew or Jessica
Are you likely to need to take out private health insurance to avoid Lifetime Health Cover loading?
Australia’s largest health insurer, Bupa, has taken to naming names for those needing to get private health insurance to avoid Lifetime Health Cover loading – and if your name is Matthew, Jessica, Daniel or Sarah you’re most likely to need to act.
Dr Dwayne Crombie, Bupa Health Insurance Managing Director, says people born in late 1985 and the first half of 1986 were now of the age that Lifetime Health Cover loading would impact them from 1 July this year.
“We know that in Australia at that period there were approximately 245,000 people born and we identified the most common names by looking at Birth, Death and Marriage information.”
“It shows that for men Matthew, Daniel and Michael are most likely to need to sign up for private health insurance this year to avoid Lifetime Health Cover, while for ladies it’s Jessica, Sarah and Rebecca that need to act.”
If you delay taking out private health insurance until you're 31 or older, the Australian Government’s Lifetime Health Cover (LHC) loading means – depending on your age when you join – your premium could increase by at least 2% to a maximum of 70%.
If you pay any loading, it’ll apply for 10 years of continuous cover so you won’t have to pay it forever (as long as you keep continuous cover for the whole 10 year period).
To avoid this loading you need to have taken out hospital cover by 1 July following your 31st birthday.