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Lifetime Community Rating

What Is Lifetime Community Rating?

Lifetime Community Rating (LCR) is an initiative to encourage younger people to take out health insurance earlier thereby helping to keep the costs of health insurance affordable for all.

It is a change to how health insurance plans are priced and it came into effect on 1st May 2015. It means that anyone who joins the health insurance market after this date who is 34 or over, will have pay a loading on their health insurance costs.

What is a loading?

A ‘loading’ is an additional charge you will have to pay on the cost of your health insurance due to LCR. You will have to pay an extra 2% a year for every year you are over 34 when you first join.

For example, if you are 38 and don’t have health insurance, you will have to pay an extra 8% on the cost of your health cover each year, for the rest of your life.

What is a credit?

A ‘credit’ is given if you previously had health insurance but have had a break in cover. For example, if you had health insurance for 2 years in your 30’s, you will receive 2 years of credits (4%). This credit of 4% is subtracted from your loading to calculate the % loading to be added to the cost of your health insurance each year.

How will LCR affect me?

If you are under or over the age of 34 and currently have health insurance, LCR will not impact you in any way. If you don’t currently have health insurance and you are 34 or over you will have to pay a loading when you take out health insurance.

What happens if you switch insurance?

Switching insurers is still an option for you. Any loadings that may apply will be carried over from one insurer to another. Each insurer is required to supply each other with proof of an individual’s prior cover. As all loadings are mandatory they cannot be waived by any insurer.

Watch Our Lifetime Community Rating Video 

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