Member Guide - RACT

Lifetime health cover loadingThe Federal Government introduced thelifetime health cover (LHC) initiative on the1 July 2000.From this date, anyone who joins ahospital cover of a registered health fundwill be given a certified age at entry (CAE)status - which represents their age whenthey first joined a hospital cover after1 July 2000.If you’re over the age of 30, the sooner you take outhospital cover, the less you’ll pay later. In summary,the Health Cover LHC loading applies if you wereaged 31 or over on the 1 July just passed and aretaking out hospital cover for the first time. Under theLHC, in addition to the rates listed in our rate charts,a 2% loading is applied for each year you are agedover 30 when you join. The Federal Government 30%Rebates apply to your total premiums, including anyLHC loading. Lifetime health cover applies to hospitalcover and does not apply to extras.Your age on1 July before taking outhospital coverLifetime health coverloading %Your age on1 July before taking outhospital coverLifetime health coverloading %30 0% 48 36%31 2% 49 38%32 4% 50 40%33 6% 51 42%34 8% 52 44%THINGS you should knowIf you joined a hospital cover before this date you areassigned a CAE of 30 and you’ll pay the base rate (thelowest premium) for your hospital cover (thepremiums listed in our rate charts are quoted at baserates). If you joined after this date and therefore havea CAE of over 30, you’ll pay a 2% loading for eachyear your CAE is above 30 to a maximum loading of70% at age 65. Where you have had to pay a LHCloading, and have done so for a continuous period of10 years, the loading will no longer apply on the dayafter the last day of the 10-year period. People born onor prior to 1 July 1934 are exempt from the CAErequirement.To use the LHC table on the opposite page,follow these steps.Step 1. Determine your age as at the 1 Julyjust passed.Step 2. Find that age on the table to findyour lifetime health cover loading.Step 3. Add this percentage increase to thehospital rates quoted in the RACT HealthInsurance rate charts. If your hospital coverhas two adults aged over 30, just add 1% foreach year you are both over 30 to the basehospital rates quoted in this member guide.If you need help, please call our customerservice centre on 13 27 22.35 10% 53 46%36 12% 54 48%37 14% 55 50%38 16% 56 52%39 18% 57 54%40 20% 58 56%41 22% 59 58%42 24% 60 60%43 26% 61 62%44 28% 62 64%45 30% 63 66%46 32% 64 68%47 34% 65 and over Capped at 70%If your situation changesPeriods of absenceAs members may need to discontinue their hospitalcover membership for brief periods, lifetime healthcover allows a period or periods of absence through amember’s lifetime without affecting their CAE. Lifetimehealth cover rules provide members of private healthinsurance who need to drop their membership, forwhatever reason, a cumulative period of 1,094 daysabsence through their lifetime without affecting theirCAE. Members will need to re-serve waiting periodswhen they return to the fund.Membership suspensionApproved periods of suspension, which will not affecta member’s CAE, are explained on page 56.THINGS you should know44 45