The Medicare framework

A high-level overview of the Medicare service and claiming process, designed to illustrate how funded services progress through delivery, claiming, payment and compliance activities.

About this resource

Publication date:
Publication type:
Infographic
Language:
English

MBS = Medicare Benefits Schedule

PBS = Pharmaceutical Benefits Scheme

CDBS = Child Dental Benefits Schedule

Medicare system and purpose

  • Universal, publicly funded patient benefits system
  • Subsidises eligible health services
  • Delivered through connected programs (MBS, PBS, CDBS)

Sets system scope and intent

Funded services (MBS)

  • Lists services eligible for Medicare benefits
  • Each service has an item number, descriptor, schedule fee and benefit rate
  • Items are grouped into categories (e.g. attendances, procedures, imaging, pathology)

Specifies eligible services

Rules and requirements

  • Clinical relevance of the service
  • Item-specific requirements
  • Patient eligibility for Medicare
  • Practitioner eligibility and participation requirements
  • Services excluded or funded under other arrangements

Determines if a benefit is payable

Health service delivered

  • Service provided to the patient
  • Matches the relevant MBS item
  • All requirements are met (including time, attendance and referral rules where applicable)

Enables claiming

Medicare claiming

  • Claims can be made by patients or providers
  • Bulk billing is where the provider accepts the assignment of the patient’s benefit as full payment for the service
  • Claims are submitted through approved claiming channels

Triggers payment

Medicare payment 

  • Benefits are outlined in the MBS
  • Different rates apply depending on service type and setting
  • Safety Nets provide higher benefits after out-of-pocket thresholds are reached

Payment made

Integrity and compliance

  • Record-keeping requirements support correct claiming
  • Incorrect payments may be reviewed and recovered
  • Compliance programs promote appropriate use of Medicare
  • Protects public funding and system integrity

Protects system sustainability and trust

Compliance data and activities inform updates and changes to the Medicare system

Guidance, information and support

Have some feedback?

Contact the Provider Support and Engagement team at Provider.Support@health.gov.au

Document reference: BID26.PSES.Framework.10.28

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