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Health Insurance Legislation Amendment (Assignment of Medicare Benefits)

Current status

This bill became law on Jul 9th, 2024.

Policy area

Health, care & disability

What does this bill do?

Once Schedule 1 commences, patients will be able to agree to assign their MedicareAustralia's public health insurance scheme; on this page, the bill changes how patients can hand over their Medicare benefit to help pay a doctor or hospital bill. benefit before treatment or after treatment, making bulk billingA billing method where the provider accepts the Medicare benefit as full payment, so the patient usually does not pay upfront. easier to handle without old paper forms.

Why was it introduced?

Old mid-2000s MedicareAustralia's public health insurance scheme; on this page, the bill changes how patients can hand over their Medicare benefit to help pay a doctor or hospital bill. assignment rules left bulk billingA billing method where the provider accepts the Medicare benefit as full payment, so the patient usually does not pay upfront. and simplified billingA set of rules for some hospital and private health insurance claims that lets Medicare benefits be directed through insurers or billing agents with less paperwork. tied to paper forms and, after COVIDThe pandemic period that triggered emergency telehealth changes, which the page says exposed weaknesses in the old billing rules. emergency telehealth changes, exposed compliance and payment-integrity risks. The bill was designed to let patients assign benefits before or after treatment, support digital claiming, and require clearer notices and records once Schedule 1 commences.

Broader context

MedicareAustralia's public health insurance scheme; on this page, the bill changes how patients can hand over their Medicare benefit to help pay a doctor or hospital bill.’s assignment-of-benefit rules for bulk billingA billing method where the provider accepts the Medicare benefit as full payment, so the patient usually does not pay upfront. and simplified billingA set of rules for some hospital and private health insurance claims that lets Medicare benefits be directed through insurers or billing agents with less paperwork. had been tied to hard-copy paperwork and handwritten signatures, even as telehealth and other modern claiming practices became routine. In 2024 the government responded with a bill to modernise those rules, but the substantive Schedule 1 reforms still depend on proclamation before they operate.

Key criticism

The main criticism was that this bill is only a small administrative fix and does not address the bigger problem of worsening access to affordable GPA family doctor or local doctor; the page uses this as the main example of the access and bulk-billing issues critics say the bill does not solve. care and declining bulk billingA billing method where the provider accepts the Medicare benefit as full payment, so the patient usually does not pay upfront.. That argument was raised mainly by Coalition speakers who still supported the bill, while only limited practical caution was voiced about working through the new forms and systems with practitioners.

Who supported it?

Ged Kearney MPAn elected parliamentarian; on this page, MPs are the people speaking in the House and debating the bill. introduced this bill. It passed on the voices.

Introduced in House 29 May 2024
Passed House 05 June 2024
Passed Senate 02 July 2024
Became law 09 July 2024

Did it become law?

Yes

Became law 09 July 2024

Final passage

Passed without a counted vote

Members called out ‘aye’ or ‘no’ — no individual votes were recorded.

Passage speed

41 days

From introduction to the latest recorded parliamentary step

Official record

View on APH

Parliament of Australia bill page

Meaning

What does this bill do?

  1. Once Schedule 1 commences, patients will be able to agree to assign their MedicareAustralia's public health insurance scheme; on this page, the bill changes how patients can hand over their Medicare benefit to help pay a doctor or hospital bill. benefit before treatment or after treatment, making bulk billingA billing method where the provider accepts the Medicare benefit as full payment, so the patient usually does not pay upfront. easier to handle without old paper forms.

  2. Once Schedule 1 commences, privately insured patients getting hospital or hospital-in-the-home treatmentHospital-level care delivered at home, which on this page can still be covered by the new simplified billing pathways. will be able to have MedicareAustralia's public health insurance scheme; on this page, the bill changes how patients can hand over their Medicare benefit to help pay a doctor or hospital bill. benefits directed through three new simplified billingA set of rules for some hospital and private health insurance claims that lets Medicare benefits be directed through insurers or billing agents with less paperwork. pathways.

  3. Once Schedule 1 commences, MedicareAustralia's public health insurance scheme; on this page, the bill changes how patients can hand over their Medicare benefit to help pay a doctor or hospital bill. claims will need to follow rules set by regulationsDetailed rules made under the Act that fill in the practical requirements for claims, notices, requests and record keeping. and a format approved by the Chief Executive MedicareThe Medicare official who can approve the required form and manner of claims under the new rules., supporting digital as well as paper claims.

  4. Once Schedule 1 commences, doctors, insurers and approved billing agents may face penalties if they do not give patients required notices about assigned MedicareAustralia's public health insurance scheme; on this page, the bill changes how patients can hand over their Medicare benefit to help pay a doctor or hospital bill. benefits, including payment notices within 6 months.

  5. Once Schedule 1 commences, doctors, insurers, billing agents, hospitals and relevant organisations will need to keep records about assigned MedicareAustralia's public health insurance scheme; on this page, the bill changes how patients can hand over their Medicare benefit to help pay a doctor or hospital bill. benefits to support checks and audits.

Show source excerpts
  1. enabling assignment to be agreed to before (known as pre-assignment), or after, the professional service has been provided, with effect from the latter; and
    Health Insurance Legislation Amendment (Assignment of Medicare Benefits) explanatory memorandum
  2. This item under section 20AAA outlines three new methods for simplified billing by which assignment of benefit for a service, provided as part of hospital treatment or hospital-substitute treatment, could be taken to have occurred under section 20A(2).
    Health Insurance Legislation Amendment (Assignment of Medicare Benefits) explanatory memorandum
  3. (1) A claim for a medicare benefit in respect of a professional service must be made to the Chief Executive Medicare:
    Health Insurance Legislation Amendment (Assignment of Medicare Benefits) Act 2024 final Act text
  4. (3) A person contravenes this subsection if:
    Health Insurance Legislation Amendment (Assignment of Medicare Benefits) Act 2024 final Act text
  5. (1) A professional mentioned in subsection 20A(1), an insurer or an approved billing agent (a relevant person) must keep all records of a kind specified by the regulations that are relevant to the following:
    Health Insurance Legislation Amendment (Assignment of Medicare Benefits) Act 2024 final Act text

Context

Broader context for this bill

MedicareAustralia's public health insurance scheme; on this page, the bill changes how patients can hand over their Medicare benefit to help pay a doctor or hospital bill.’s assignment-of-benefit rules for bulk billingA billing method where the provider accepts the Medicare benefit as full payment, so the patient usually does not pay upfront. and simplified billingA set of rules for some hospital and private health insurance claims that lets Medicare benefits be directed through insurers or billing agents with less paperwork. had been tied to hard-copy paperwork and handwritten signatures, even as telehealth and other modern claiming practices became routine. In 2024 the government responded with a bill to modernise those rules, but the substantive Schedule 1 reforms still depend on proclamation before they operate.

  1. 01 Feb 2024

    MedicareAustralia's public health insurance scheme; on this page, the bill changes how patients can hand over their Medicare benefit to help pay a doctor or hospital bill. turns 40 while assignment rules remain paper-based

    Speakers marked MedicareAustralia's public health insurance scheme; on this page, the bill changes how patients can hand over their Medicare benefit to help pay a doctor or hospital bill.’s 40th anniversary while arguing that the assignment-of-benefit process still relied on outdated hard-copy forms and handwritten signatures.

    Hansard ↗
  2. 29 May 2024

    Government introduces a bill to modernise MedicareAustralia's public health insurance scheme; on this page, the bill changes how patients can hand over their Medicare benefit to help pay a doctor or hospital bill. benefit assignment

    The minister said the bill would make bulk billingA billing method where the provider accepts the Medicare benefit as full payment, so the patient usually does not pay upfront. and simplified billingA set of rules for some hospital and private health insurance claims that lets Medicare benefits be directed through insurers or billing agents with less paperwork. easier, bring the process into the 21st century and better safeguard MedicareAustralia's public health insurance scheme; on this page, the bill changes how patients can hand over their Medicare benefit to help pay a doctor or hospital bill. from fraud.

    Hansard ↗
  3. 05 June 2024

    House passes the bill

    During debate MPs said the existing paperwork had not kept up with technology and that the changes would streamline claims, particularly for telehealth consults.

    Parliamentary timeline ↗
  4. 02 July 2024

    Parliament passes the bill

    Both houses agreed to the same bill, clearing the way for new rules on digital claiming, patient notices and record-keeping for assigned MedicareAustralia's public health insurance scheme; on this page, the bill changes how patients can hand over their Medicare benefit to help pay a doctor or hospital bill. benefits.

    Parliamentary timeline ↗
  5. 09 July 2024

    Royal AssentThe final formal step that turns a passed bill into an Act of Parliament. creates the Act, with Schedule 1 still to commence

    Royal AssentThe final formal step that turns a passed bill into an Act of Parliament. made the bill an Act, but the substantive Schedule 1 reforms require a proclamation before they operate.

    Parliamentary timeline ↗

Legislative route

How did it move through Parliament?

House Senate
Introduced 29 May 2024

The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.

Introduced and read a first time

Second reading opened 29 May 2024

A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.

Second reading moved

Second reading debate 04 June 2024

The bill reached this recorded parliamentary step.

Second reading debate 05 June 2024

The bill reached this recorded parliamentary step.

House second reading agreed 05 June 2024

The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.

Second reading agreed to

House third reading agreed 05 June 2024

The chamber agreed to the bill at third reading, which completed passage through that chamber.

Third reading agreed to

Introduced 24 June 2024

The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.

Introduced and read a first time

Second reading opened 24 June 2024

A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.

Second reading moved

Second reading debate 02 July 2024

The bill reached this recorded parliamentary step.

Senate second reading agreed 02 July 2024

The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.

Second reading agreed to

Senate third reading agreed 02 July 2024

The chamber agreed to the bill at third reading, which completed passage through that chamber.

Third reading agreed to

Passed both houses 02 July 2024

Both houses passed the bill in the same form, completing parliamentary passage.

Finally passed both Houses

Assent 09 July 2024

The Governor-General gave Royal AssentThe final formal step that turns a passed bill into an Act of Parliament., turning the bill into an Act.

Key criticism

The main case against this bill

The main criticism was that this bill is only a small administrative fix and does not address the bigger problem of worsening access to affordable GPA family doctor or local doctor; the page uses this as the main example of the access and bulk-billing issues critics say the bill does not solve. care and declining bulk billingA billing method where the provider accepts the Medicare benefit as full payment, so the patient usually does not pay upfront.. That argument was raised mainly by Coalition speakers who still supported the bill, while only limited practical caution was voiced about working through the new forms and systems with practitioners.

No party represented in the debate opposed the bill itself.

Does not fix broader Medicare access problems

Critics argued the bill streamlines paperwork but does not tackle the larger issues patients face, including falling bulk-billing rates, GPA family doctor or local doctor; the page uses this as the main example of the access and bulk-billing issues critics say the bill does not solve. shortages and the rising cost of seeing a doctor. The concern was that the reform could be presented as strengthening MedicareAustralia's public health insurance scheme; on this page, the bill changes how patients can hand over their Medicare benefit to help pay a doctor or hospital bill. when it mostly changes billing administration.

Raised by Coalition speakers including Sussan Ley, Michael McCormack and Anne Ruston Source ↗

New processes still need careful rollout

A narrower reservation was that the new digital forms, consent processes and billing systems would need to be worked through carefully with practitioners so the administrative changes operate smoothly in practice.

Raised by Anne Stanley Source ↗

Further sources

parlinfo.aph.gov.au ↗ parlinfo.aph.gov.au ↗

Votes

Recorded votes

How the bill itself passed

The bill passed both chambers on the voices, so there is no list of individual Aye and No votes for final passage.

Passed

House passed the bill

House agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.

05 June 2024

Passed on the voices

In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.

Passed

Senate passed the bill

Senate agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.

02 July 2024

Passed on the voices

In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.

Amendments at a glance

Amendments grouped by chamber. These cards include amendment outcomes recorded without a counted division.

Senate

Defeated

Note declining bulk billingA billing method where the provider accepts the Medicare benefit as full payment, so the patient usually does not pay upfront. rates

Senator Ruston's second-reading proposal would add a Senate note saying bulk billingA billing method where the provider accepts the Medicare benefit as full payment, so the patient usually does not pay upfront. has declined and it has become harder and more expensive to see a GPA family doctor or local doctor; the page uses this as the main example of the access and bulk-billing issues critics say the bill does not solve.; it was decided on voices.

Defeated on voices

The chamber decided this amendment without a counted division, so there is no list of individual Aye and No votes.

Hansard record ↗

Parliamentary debate

Who spoke, and what they said

Start here — lead voices

Sponsor speech Supports

Ged Kearney

Australian Labor Party • MP 29 May 2024

Ged Kearney supports the bill, saying it modernises and simplifies the MedicareAustralia's public health insurance scheme; on this page, the bill changes how patients can hand over their Medicare benefit to help pay a doctor or hospital bill. assignment-of-benefits process to make bulk billingA billing method where the provider accepts the Medicare benefit as full payment, so the patient usually does not pay upfront. easier, protect payment integrity, and reduce red tape for patients and providers.

Read in Hansard ↗
Lead supporting voice Supports

Michael McCormack

National Party • MP 05 June 2024

McCormack says the opposition supports the bill because it will streamline MedicareAustralia's public health insurance scheme; on this page, the bill changes how patients can hand over their Medicare benefit to help pay a doctor or hospital bill. billing and reduce paperwork, but argues it is only a modest improvement while bulk-billing and regional access to doctors are getting worse under Labor.

Read in Hansard ↗
Lead voice Supports

Mike Freelander

Australian Labor Party • MP 05 June 2024

Freelander strongly supports the bill, saying it will reduce paperwork, let MedicareAustralia's public health insurance scheme; on this page, the bill changes how patients can hand over their Medicare benefit to help pay a doctor or hospital bill. benefits be assigned more smoothly, improve tracking and compliance, and prevent patients facing large upfront costs for complex care.

Read in Hansard ↗
Lead voice Supports

Anne Ruston

Liberal Party • Senator 02 July 2024

Ruston says the coalition supports the bill because it cuts red tape and streamlines MedicareAustralia's public health insurance scheme; on this page, the bill changes how patients can hand over their Medicare benefit to help pay a doctor or hospital bill. claims, but argues it does not amount to real progress on strengthening MedicareAustralia's public health insurance scheme; on this page, the bill changes how patients can hand over their Medicare benefit to help pay a doctor or hospital bill..

Read in Hansard ↗

All speeches by bloc

Labor

4 speakers · 5 contributions · 4 support

  1. Mike Freelander ★ Freelander strongly supports the bill, saying it will reduce paperwork, let MedicareAustralia's public health insurance scheme; on this page, the bill changes how patients can hand over their Medicare benefit to help pay a doctor or hospital bill. benefits be assigned more smoothly, improve tracking and compliance, and prevent patients facing large upfront costs for complex care.
    “I commend the bill to the House, and I look forward to better health outcomes for all Australians.”

    Australian Labor Party • MP • 05 June 2024

    Read the full speech in Hansard ↗
  2. Ged Kearney ★ Ged Kearney supports the bill, saying it modernises and simplifies the MedicareAustralia's public health insurance scheme; on this page, the bill changes how patients can hand over their Medicare benefit to help pay a doctor or hospital bill. assignment-of-benefits process to make bulk billingA billing method where the provider accepts the Medicare benefit as full payment, so the patient usually does not pay upfront. easier, protect payment integrity, and reduce red tape for patients and providers.
    “To conclude, this bill supports the Medicare Benefits Schedule and modernises and simplifies the assignment-of-benefits process to provide patients' continued access to timely and subsidised care. Amendments will improve Medicare payment integrity and benefits both patients and providers, ultimately resulting in better healthcare outcomes for Australians.”

    Australian Labor Party • MP • 29 May 2024

    Read the full speech in Hansard ↗
  3. Graham Perrett 2 contributions Graham Perrett says Labor supports the bill, which modernises MedicareAustralia's public health insurance scheme; on this page, the bill changes how patients can hand over their Medicare benefit to help pay a doctor or hospital bill. benefit assignment so bulk-billing is easier for patients and providers.

    Hansard records 2 separate contributions by Graham Perrett on this bill. They are grouped here so the speaker is listed once.

    Second reading speech Australian Labor Party • MP • 05 June 2024

    Graham Perrett says Labor supports the bill, which modernises MedicareAustralia's public health insurance scheme; on this page, the bill changes how patients can hand over their Medicare benefit to help pay a doctor or hospital bill. benefit assignment so bulk-billing is easier for patients and providers. He argues it will cut red tape, improve efficiency, and help strengthen bulk-billing after Labor's recent investment.

    “This bill amends the Health Insurance Act 1973 to modernise the assignment of the Medicare benefits for bulk-billed and simplified billing services. Labor wants to take all possible measures to make it easier for Australians to be bulk-billed and easier for Australians to access the health services they need.”
    Read this contribution in Hansard ↗

    Second reading speech Australian Labor Party • MP • 05 June 2024

    Perrett supports the bill and says it will modernise MedicareAustralia's public health insurance scheme; on this page, the bill changes how patients can hand over their Medicare benefit to help pay a doctor or hospital bill. by replacing paper-based assignment-of-benefits paperwork with digital signatures, clearer patient consent and better recordkeeping. He argues the changes will reduce admin for providers and make billing more efficient and futureproof.

    “The reforms in this bill are an important part of strengthening Medicare and making it efficient and modern for both practitioners and patients. The Albanese Labor government believes in Medicare and continues to drive measures that make it easier and cheaper for Australians to access high-quality and affordable healthcare. I commend the bill to the House.”
    Read this contribution in Hansard ↗
  4. Anne Stanley Stanley supports the bill and says it will modernise bulk-billing by allowing electronic and digital ways to assign MedicareAustralia's public health insurance scheme; on this page, the bill changes how patients can hand over their Medicare benefit to help pay a doctor or hospital bill. benefits, making the process simpler for patients and practitioners.
    “The proposed amendments before us will enable electronic and digital solutions to be used when seeking agreements to assign benefits for Medicare services. The end result will be a simpler process for both patients and practitioners and a stronger Medicare.”

    Australian Labor Party • MP • 05 June 2024

    Read the full speech in Hansard ↗

Coalition

4 speakers · 4 support

  1. Michael McCormack ★ McCormack says the opposition supports the bill because it will streamline MedicareAustralia's public health insurance scheme; on this page, the bill changes how patients can hand over their Medicare benefit to help pay a doctor or hospital bill. billing and reduce paperwork, but argues it is only a modest improvement while bulk-billing and regional access to doctors are getting worse under Labor.
    “We support these sensible amendments; they'll streamline processes for healthcare providers and private health insurers. But it is so hard. I have a situation in the north of my electorate, at Parkes, where the mayor, Neil Westcott, tells me they haven't had a birth in the town in five years. I appreciate that this isn't just a federal responsibility and that state public hospital issues come into play. But Parkes is a town of 12,000 people, and Parkes deserves better. I've certainly written to the health minister. I've written to the Assistant Minister for Rural and Regional Health, Emma McBride, whom I also have a great amount of respect for. She comes to this place as a pharmacist. What we want to see is better and more health services for our regional communities, certainly in a town the size of Parkes. When a town the size of Parkes, which has 12,000 people, doesn't have obstetrics and maternity services, there's something really wrong. I commend the bill to the House.”

    National Party • MP • 05 June 2024

    Read the full speech in Hansard ↗
  2. Anne Ruston ★ Ruston says the coalition supports the bill because it cuts red tape and streamlines MedicareAustralia's public health insurance scheme; on this page, the bill changes how patients can hand over their Medicare benefit to help pay a doctor or hospital bill. claims, but argues it does not amount to real progress on strengthening MedicareAustralia's public health insurance scheme; on this page, the bill changes how patients can hand over their Medicare benefit to help pay a doctor or hospital bill..
    “So, once again, the coalition supports this legislation and the fact that it removes red tape and streamlines processes for healthcare providers and private health insurers. However we put on the record that the data clearly shows that the Albanese Labor government are weakening Australia's access to affordable health care; they are not strengthening it. To that effect, I move the second reading amendment circulated in my name:”

    Liberal Party • Senator • 02 July 2024

    Read the full speech in Hansard ↗
  3. James Stevens James Stevens says the opposition will support the bill and back its passage because it should improve how MedicareAustralia's public health insurance scheme; on this page, the bill changes how patients can hand over their Medicare benefit to help pay a doctor or hospital bill. benefits are processed through the private system.
    “I rise to speak in favour of the second reading on this bill, the Health Insurance Legislation Amendment (Assignment of Medicare Benefits) Bill 2024. As the lead speaker for the opposition has indicated, we support the passage of the bill. Clearly, any opportunity to improve the way in which the private health insurers, the private hospitals et cetera and, most importantly, the consumers are interacting with the Medicare system is a very good thing. But it is also an opportunity to speak about some broader issues around Medicare and private health.”

    Liberal Party • MP • 05 June 2024

    Read the full speech in Hansard ↗
  4. Sussan Ley Ley says the coalition supports the bill because it will reduce red tape and streamline MedicareAustralia's public health insurance scheme; on this page, the bill changes how patients can hand over their Medicare benefit to help pay a doctor or hospital bill. billing, especially for bulk-billed and telehealth services.
    “We support these sensible amendments which will streamline processes for healthcare providers and private health insurers.”

    Liberal Party • MP • 04 June 2024

    Read the full speech in Hansard ↗

Record

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