What is an assignment of benefit?
An assignment of Medicare benefit, or AoB, allows a person’s Medicare benefit to be paid to another party.
Why is it used?
An AoB is required when someone other than the patient receives the Medicare benefit, such as a healthcare provider, private health insurer or approved billing agent. It supports both bulk billing and simplified billing.
Bulk billing
- The Medicare benefit is paid directly to the healthcare provider
- The provider accepts it as full payment
- Patients have no out‑of‑pocket costs
Simplified billing
- The benefit is paid to a private health insurer or approved billing agent
- Reduces the number of bills received by privately insured patients
- Helps minimise or remove upfront costs for hospital services
What’s changing?
This process is being modernised to strengthen Medicare, reduce administrative burden, and streamline billing.
What are the changes for bulk billing services?
Since 1 July 2026, healthcare providers have more ways to obtain agreement to assign a Medicare benefit.
The agreement can be given by the patient or the person paying for the service (the assignor), either before or after the service. It must clearly relate to the specific Medicare service being claimed and allows the provider to bill Medicare and be paid directly.
These changes:
- make it easier for patients to assign their Medicare benefits
- support digital workflows and software integration
- allow agreements to be completed before or after services are provided
- give patients clearer information about assigning their Medicare benefit.
What are the changes for simplified billing services?
On 1 July 2026, simplified billing assignment of Medicare benefits were updated for medical practitioners, hospitals, private health insurers and approved billing agents.
In some cases, assignment of benefit happens automatically where there is a qualifying arrangement with a private health insurer. This means no patient signature is required.
In other cases, the patient, or the person paying for the service, must agree in writing. This can be done electronically or on paper, before or after the service. A single written assignment can also cover all medical services within a hospital admission.
Healthcare providers, hospitals, private health insurers, and approved billing agents must keep records of assignment of benefit arrangements.
Private health insurers or approved billing agents must also notify patients in writing within 6 months of receiving the Medicare benefit.
More information
More details about the assignment of benefits changes can be found on the Improving the assignment of benefit process webpage.
For information about Medicare billing, claiming, payments, or obtaining a provider number, go to the Health Professionals page on the Services Australia website or contact Services Australia on the Provider Enquiry Line: 13 21 50.
Contact
