Certified Age of Entry Explained

What does Certified Age of Entry mean?  

Certified Age of Entry (CAE) is the age at which you first took out private hospital cover and it is used to calculate if (and how much) Lifetime Health Cover (LHC) loading you must pay on top of your Hospital cover premium. It’s important to note that your CAE is not indicative of your biological age – it becomes available to “lock in” on the 1 July immediately following your 31st birthday.

When was Certified Age of Entry introduced? 

Australian citizens and residents without a complying private health insurance domestic hospital cover were given an introductory grace period commencing 1 July 1999 and ending on 15 July 2000 to join a health fund and lock in a certified age of entry of 30 prior to the commencement of LHC loading. 

How is my Certified Age of Entry assigned?

If you take out private Hospital cover before 1 July following your 31st birthday (and maintain it), then you will have a CAE of 30. This entitles you to the lowest base rate premium for as long as you continue to hold private hospital cover.

If you have not taken out and maintained private patient hospital cover from the year you turn 31 and then you decide to take it out later in life, then you will need to pay a 2% loading on top of your hospital premium for every year you are aged over 30, based on your age on the 1 July prior to joining. For example, if you turned 34 on 10 July and joined Hospital cover on 20 July the same year, your CAE would be 33; whereas if you turned 34 on 10 June and joined Hospital cover on 20 July the same year, your CAE would be 34.

Related Pages:  

What is Lifetime Health Cover loading? (hif.com.au)