Medicare Assignment of Benefit Consent Changes for July 2026

The Regulatory Shift: Verbal Consent Is Ending

From 1 July 2026, the temporary arrangements allowing verbal Assignment of Benefit (AoB) consent for Medicare bulk-billed services will officially end. Under the updated Health Insurance Regulations, every bulk-billed consult, visit, or procedure must be backed by a written or electronic signature. Verbal agreements will no longer be compliant, leaving practices vulnerable to audits, recoupments, and compliance actions from Services Australia.

Why the Change?

Under Section 20A of the Health Insurance Act 1973, when a practitioner bulk bills, the patient assigns their right to a Medicare benefit to the practitioner as full payment for the service. Historically, this assignment required the patient to sign a physical DB4 form. During the pandemic, Services Australia relaxed these rules, allowing verbal consent to be documented. However, the Department of Health is tightening compliance to reduce billing disputes and audit failures. The 1 July 2026 rules return to the strict requirement of an explicit, trackable signature.

Key Implications for GPs and Practices

• No more verbal approvals: Simply typing "verbal consent obtained" in your clinical notes will not protect you in an audit.
• Mandatory data capture: Under Regulation 65C(4), the consent record must capture the exact Medicare number, patient details, provider number, MBS items claimed, schedule fees, and date of service.
• Two-year retention rule: The signed consent must be stored and be retrievable for at least two years after the date of service.
• Setting-specific rules: Capturing consent in places like Residential Aged Care Facilities (RACFs), transition care units, and home visits presents unique logistical challenges.

Important Audit Risk: If Services Australia conducts a random review of your bulk-billed claims and you cannot produce a signed Assignment of Benefit consent form for each service within the retention period, the claim is deemed invalid, and the practice may be forced to repay the Medicare benefit.

Preparing Your Practice

Practices must transition away from legacy paper forms and verbal processes. Setting up a dedicated compliance system like GPConsent ensures that signatures are captured electronically, validated against MBS guidelines, and stored securely in a compliant vault.