What Is Lifetime Loading On Private Health Insurance?

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   Marlin McKelvy

   President, Consumer Directed Benefit Solutions, Memphis, Tennessee

   G'day mate, you nearly had me stumped with this question. Lifetime loading is a feature of the Australian health insurance system and not a part of health insurance plans sold in the United States. Down under, if a person over age 30 does not purchase private health insurance they will become subject to a premium penalty (or loading) of 2% for each year they have delayed in purchasing private health insurance. For example, Mr. Dundee waits until he is 35 to buy private health insurance. He has waited 4 years past being age 30 and his monthly premium as a 35 year old will be inflated by 8% (2% x 4 years) above what the premium would have been for someone who has had coverage since they age 30. This legal approach is designed to incentivize Australians to purchase private health insurance.

   Answered on October 5, 2014

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