Assignment of Medicare benefits changes from 1 July 2026

From 1 July 2026, updated requirements apply for assigning Medicare benefits when a service is bulk billed.

Assignment of benefit is the process where a patient agrees for their Medicare benefit to be paid directly to the provider as full payment for the service, meaning the patient has no out-of-pocket cost for that service. 

There is a 12-month transition period where patients can provide a verbal assignment, providing practices time to update workflows, train staff and confirm software arrangements without needing to make every change immediately on 1 July 2026. 

General practices should review their billing and administrative workflows to ensure patients are provided with clear information about the bulk billed service and are able to agree to assign their Medicare benefit before a claim is submitted. 

Key points for practices

• Verbal assignment transition period. Practices can use the 12-month transition period to put in place necessary assignment processes, documentation and train staff. During this time, practices should also review and strengthen how verbal assignment is recorded.
• Enduring assignment may reduce repeated consent steps. Enduring assignment allows a patient to agree in advance to assign their Medicare benefits for eligible future bulk billed services with the practice. 
• Patient agreement is required. Patients must be given enough information to understand what they are agreeing to when assigning their Medicare benefit for a bulk billed service.
• Assignment can occur before or after the service. Practices should ensure the service description and assignment request remain accurate if the service provided changes.
• Electronic and digital processes are supported. The changes are intended to modernise assignment of benefits and support safer, more transparent Medicare claiming.
• Records must be retained. Practices should keep appropriate records of assignment in line with Medicare requirements and their usual record keeping processes (2 years minimum).

If a patient does not agree to assign their Medicare benefit, the service cannot be claimed as bulk billed. Practices will need to discuss alternative billing arrangements with the patient before submitting a claim.

Which patients are eligible for an enduring assignment of benefits?

From 1 July 2026, patients registered with MyMedicare, residents of aged care homes, and patients of Aboriginal Community Controlled Health Organisations (ACCHOs) or Aboriginal Medical Services (AMSs) will be able to make an enduring assignment of benefit for ongoing GP bulk billed services, either directly or through a person acting on their behalf.

• A patient registered with MyMedicare will be able to make one enduring agreement to receive services from all general practitioners at their MyMedicare practice, if offered.
• A patient of an ACCHO or AMS will be able to make an enduring agreement with the ACCHO or AMS, and they will be able to have multiple agreements with multiple ACCHs or AMS.
• A patient living in a residential aged care home will be able to make multiple enduring agreements with different practitioners.

How can practices prepare for Assignment of Benefits changes? 

Practices can prepare by:

• checking that reception, clinical and billing teams understand verbal, pre-service, post-service and enduring assignment requirements
• confirming their practice management software supports the required assignment workflow
• reviewing processes for telehealth, pathology and any circumstances where the service changes from what was originally booked
• ensuring staff know where to find the Department’s FAQs and seek support if they are unsure.

The Australian Government Department of Health, Disability and Ageing has published frequently asked questions to help medical practitioners, administrative staff in medical practices and hospitals, and software vendors understand and meet their obligations when claiming bulk billing under Medicare. 

RACGP is also hosting a webinar, New assignment of benefit (AoB) processes commence for Medicare bulk billed services, on 14 July 2026 from 7:00 pm to 8:00 pm AEST for general practices.

Services Australia has published templates for episodic and enduring Assignment of Benefits.

For more information, see the Department’s Assignment of Medicare Benefits for Bulk Billing – Frequently Asked Questions.

Please contact more information about the Assignment of Benefit (AoB) project.

AssignmentofBenefit@health.gov.au

OR

Practice Support at practicesupport@cesphn.com.au

Digital Health Team at digitalhealth@cesphn.com.au