Youth Discount

The Youth Discount is an age-based discount designed to encourage people to join hospital cover early in life and to then maintain their cover throughout their lifetime.

To receive the discount a person must be aged 18-29 inclusive and join an eligible level of hospital cover. Eligible hospital covers are our Five Star Gold suite of products, with or without an excess.

A person can transfer between eligible covers and still retain their discount. If transferring from another health fund that offers age-based discounts, the discount will be retained when joining an eligible cover with MHF.

The discount amount starts at 10%, for persons aged 18 to 25 inclusive and will reduce by 2% for each year you put off joining hospital cover after you turn 25 until you reach age 30.

For example, if you join a Five Star Gold cover at age 28, you will be entitled to a 4% discount. 28 will become your age at assessment date.

As long as you remain on an eligible hospital cover, you will continue to receive your full discount entitlement until you turn 41.

At the age of 41, your discount will start to reduce by 2% every year until it reaches zero.

Lifetime Health Cover

Lifetime Health Cover (LHC) is a government initiative designed to encourage people to take out private hospital cover earlier in life and maintain this cover throughout their lifetime.

If you join private hospital cover before July 1 immediately following your 31st birthday and keep it, you will not incur an extra cost for LHC loading.

If you decide to take out cover later in your life, you will pay an extra 2% more for cover every year that you are over the age of 30. This is called Lifetime Health Cover loading. LHC loading applies to the hospital portion of your cover only. The Australian Government Rebate is not payable on any LHC loading amount that may apply to your cover.


The maximum loading you will ever pay is 70%.

If you were born before 1 July 1934 you are exempt from the loading.

You can drop your hospital cover for up to 1,094 days throughout your lifetime without incurring penalty loading when re-joining. Waiting periods will apply when you re-join.

You can vary your level of hospital cover without affecting your LHC loading.

LHC loading remain on your membership for 10 years. After 10 straight years the loading will be removed. However, the loading may be reapplied if you cease your hospital cover and then take it up again at a later date.

Government Rebate

The Private Health Insurance Rebate is the amount the Government contributes towards the cost of eligible Australians health insurance premiums.

Your eligibility to receive the rebate is based on your income and the age of the oldest person on your membership. See the table above to help work out your rebate tier.

The rebate only applies to the standard (base) amount of your premium before any discount or Lifetime Health Cover (LHC) amount is applied.

If you select the wrong rebate tier, any difference will be reconciled when you lodge your tax return.

You don’t have to claim your rebate as a reduced premium, you can pay the full premium cost and claim the rebate back at tax time.

Calculation of the rebate percentage is based on a complex formula and the Consumer Price Index (CPI). The rebate percentage is reduced each year.

Financial Year
Base Tier SINGLE UP TO $90,000
FAMILY* UP TO $180,000
24.608% 28.710% 32.812% 0%
Tier 1 SINGLE $90,001 TO $105,000
FAMILY* $180,001 TO $210,000
16.405% 20.507% 24.608% 1%
Tier 2 SINGLE $105,001 TO $140,000
FAMILY* $210,001 TO $280,000
8.202% 12.303% 16.405% 1.25%
Tier 3 SINGLE $140,001 AND ABOVE
0% 0% 0% 1.5%

*If you are a family with children, the threshold increase by $1,500 for each child after your first. A family includes couples and single parent families. Further information can be found at Income threshold is subject to change and is valid until 30 June 2021.

Medicare Levy Surcharge

The Medicare Levy Surcharge (MLS) is levied on Australian taxpayers who are high income earners and who do not hold hospital cover.

The surcharge aims to encourage individuals to take out private hospital cover, and where possible, to use the private hospital system to reduce demand on the public Medicare system.

The surcharge is between 1% and 1.5% (depending on your household income) and is in addition to the 2% Medicare Levy paid by most Australian taxpayers.

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