The Age-Based Discount is a government initiative that allows eligible younger Australians to receive a discount on the cost of their private hospital cover premiums.
The discount is available to people who take out eligible hospital cover between the ages of 18 and 29.
This article explains how the Age-Based Discount works, who can receive it and how long it lasts.
Key Points
- The Age-Based Discount is available to eligible Australians aged 18 to 29.
- The discount only applies to your hospital cover premiums.
- The maximum discount is 10%.
- The discount gradually reduces over time and eventually expires.
What is the Age-Based Discount?
The Age-Based Discount is a discount that reduces the cost of private hospital cover for younger Australians.
The discount was introduced by the Australian Government on 1 April 2019 to encourage people to take out hospital cover earlier in life.
People aged 18 to 29 receive a 2% discount for each year below age 30 when they first take out eligible hospital cover.
Who can receive the discount?
The Age-Based Discount is available to Australians who take out eligible hospital cover between the ages of 18 and 29.
The discount applies to hospital cover only and does not apply to extras cover.
To receive the discount, the policy needs to include an eligible hospital product.
How much discount can you receive?
The discount increases by 2% for every year a person is aged below 30 when they first take out eligible hospital cover.
The maximum discount available is 10%.
| Age when hospital cover starts | Discount |
|---|---|
| 18-25 | 10% |
| 26 | 8% |
| 27 | 6% |
| 28 | 4% |
| 29 | 2% |
On couples and family policies, the discount applied is based on the average discount of the adults covered by the policy.
For example, if one person has a 10% discount and the other has a 4% discount, the average discount applied to the hospital premium would be 7%.
How long does the discount last?
The Age-Based Discount is applied to hospital cover premiums until a person turns 41.
After age 41, the discount gradually reduces by 2% each year.
Once the discount reduces to 0%, standard hospital cover premiums apply.
For example, if you take out hospital cover at age 25, you’ll receive a 10% discount until age 40. When you turn 41, the discount reduces to 8% and continues reducing by 2% each year until it reaches 0%.
What happens if you change health funds?
The Age-Based Discount is transferable between health funds.
If you move to another health fund and continue to hold eligible hospital cover, your existing discount level can move with you.
The discount only applies while you continue to hold eligible hospital cover.
Is the Age-Based Discount the same as Lifetime Health Cover Loading?
No. The Age-Based Discount and Lifetime Health Cover Loading (LHC) are different government initiatives.
The Age-Based Discount rewards younger Australians who take out hospital cover earlier in life by reducing the cost of their premiums.
Lifetime Health Cover Loading increases the cost of hospital cover for people who do not take out hospital cover before 1 July following their 31st birthday.
Both initiatives are designed to encourage Australians to take out and maintain private hospital cover earlier in life.
