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Medicare Updates

Proposed Assignment of Benefit Workflow

A proposed Medical Wizard workflow for handling Assignment of Benefit steps more cleanly inside Medicare-connected claiming processes.

Medical Wizard Team22 June 20264 min read

Effective from 1 July 2026

The Australian Government has introduced changes to the Assignment of Benefit (AoB) process for Medicare bulk-billed services. From 1 July 2026, verbal consent will no longer be sufficient. Patients must provide a written or electronic agreement before a Medicare claim is submitted. (Health and Ageing Australia)

Medical Wizard proposes the following workflows to support compliance while minimising disruption to practice operations.

Option 1 – Pre-Service Assignment (Recommended)

This workflow allows the patient to assign their Medicare benefit before attending the appointment.

Workflow

  1. Appointment is booked.

  2. Medical Wizard generates a compliant AoB form containing the required Medicare dataset.

  3. The practice can:

    • Print the form and provide it to the patient, or

    • Email the form directly from Medical Wizard.

  4. The patient:

    • Signs the form and brings it to the appointment, or

    • Signs and returns it electronically.

  5. The signed form is stored against the patient record.

  6. Consultation occurs.

  7. Invoice is created.

  8. Claim is submitted to Medicare.

Benefits

  • No delay to billing after consultation.

  • Consent already obtained before the service.

  • Suitable for planned appointments and procedures.

Note: Under the new legislation, pre-service assignment is permitted, provided the required information is supplied to the patient and the agreement is obtained before the claim is lodged. (Health and Ageing Australia)

Option 2 – SMS-Based Pre-Service Assignment

Workflow

  1. Appointment is booked.

  2. Medical Wizard sends an SMS containing:

    • Practice name

    • Practitioner name

    • Appointment date

    • Basic service description

    • Secure confirmation link

  3. Patient reviews the information.

  4. Patient confirms electronically.

  5. Consent record is stored within Medical Wizard.

  6. Consultation occurs.

  7. Invoice is created.

  8. Claim is submitted.

Benefits

  • Eliminates paper handling.

  • Suitable for high-volume practices.

  • Provides an electronic audit trail.

Note: The legislation requires an identifiable and auditable electronic agreement. A simple SMS reply of "Y" may not be sufficient on its own. A secure confirmation process with audit history is recommended. (Health and Ageing Australia)

Option 3 – Post-Service Assignment

This workflow may be preferred where the final MBS item numbers are not known until after the consultation.

Workflow

  1. Consultation completed.

  2. Invoice created.

  3. MBS item numbers are known.

  4. Medical Wizard sends:

    • SMS link, or

    • Email link, or

    • Printed AoB form.

  5. Patient reviews service details and provides consent.

  6. Consent is stored against the invoice.

  7. Claim is submitted to Medicare.

Benefits

  • Exact MBS item numbers can be displayed.

  • No assumptions required regarding final services rendered.

  • Aligns with the workflow being adopted by several practice management systems. (Healthengine Help Centre)

If the Patient Does Not Provide Consent

If the patient declines to assign their Medicare benefit:

  1. The bulk-bill claim cannot be submitted.

  2. The patient must be privately billed.

  3. The patient can then claim the Medicare rebate directly from Services Australia. (Healthengine Help Centre)

Record Retention Requirements

From 1 July 2026:

  • Practices must retain the completed Assignment of Benefit agreement for a minimum of two years.

  • Agreements may be paper or electronic.

  • The agreement must be available if requested by Medicare or the patient. (Health and Ageing Australia)

Medical Wizard Recommendation

Medical Wizard recommends supporting both:

Pre-Service Consent

Suitable for:

  • Specialist practices

  • Day hospitals

  • Planned procedures

  • Follow-up appointments

Post-Service Consent

Suitable for:

  • General practice

  • Variable consultation types

  • Situations where final MBS items are not known until the consultation is completed

This gives practices flexibility while remaining compliant with the new Medicare Assignment of Benefit requirements effective from 1 July 2026.

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