From 1 July 2026, changes are being introduced to the Assignment of Benefit process for Medicare bulk billing and Simplified billing.

For a general overview of the Assignment of Benefit changes, please refer to the Department of Health: Improving the Assignment of Benefit Process

Important Update – June 2026

The Australian Government has announced updated transition arrangements for the Medicare Assignment of Benefit changes commencing on 1 July 2026.

Regulatory amendments are being progressed to introduce a 12-month transition period. This includes allowing verbal assignment of benefit for all bulk-billed patients in all healthcare settings.

The Department will also use this period to consider further options to reduce the administrative burden on healthcare providers and patients while maintaining the integrity of Medicare.

Medicare Bulk Billing

From 1 July 2026:

• Assignment of Benefit can be completed before the service as a Pre-Assignment, or after the service as a Post-Assignment. FYDO will support Post-Assignment.
• Consent must be obtained before the Medicare claim is submitted.
• The patient or assignor can provide consent on paper, electronically or verbally (during the transition period).
• Providers will no longer need to sign the agreement.
• Evidence of consent must be retained for two years.
• Prior approved DB4E and DB020 forms will no longer meet the requirements for a valid Assignment of Benefit (AoB) agreement.
• Enduring Assignment of Benefit option will also be available for eligible MyMedicare patients, residential aged care residents and patients of Aboriginal Community Controlled Health Organisations (ACCHOs).

For further information, please refer to the Department’s Assignment of Medicare Benefits for Bulk Billing – Frequently Asked Questions that is regularly being updated.

Simplified Billing

The 12-month transition arrangements do not change the new Simplified Billing requirements commencing on 1 July 2026.

Key changes include:

• Simplified billing claims will use either Implied Assignment or Requested Assignment.
• Implied Assignment may apply where an insurer arrangement is in place for the service, such as Gap Cover Agreements or MPPAs.
• Requested Assignment may apply where an insurer arrangement does not apply. In these cases, the patient or assignor needs to agree to assign the Medicare benefit.
• Simplified billing claims will need to indicate whether Implied Assignment or Requested Assignment applies, for both electronic and manual claims.

For more information, please refer to the Department of Health resources below:

Assignment of Benefit – Simplified Billing Legislation Changes

Assignment of Medicare Benefits for Simplified Billing – Frequently Asked Questions

FYDO Updates

FYDO has already started releasing updates in preparation for the 1 July 2026 Assignment of Benefit changes.

• 25/06/26 – FYDO is preparing a software update to support the new Medicare Assignment of Benefit requirements, with release currently expected in August 2026.
  
  Further information about this update will be provided closer to the release date, including details of a webinar to help support clients through these changes.
  
  
• 15/06/26 – An Assignment Type field was added to the Clinical Billing screen. The field was also added to the Edit Invoice pop-up, accessed via Claiming Medical > View Batch Details > Action > Edit Invoice, in preparation for the Simplified Billing changes commencing on 1 July 2026.
  
  
• 23/04/2026 – Default Assignment Type for Simplified Billing Claims to Implied or Requested within Doctor Setup. Steps on how to update this field can be found here: FYDO Clinic Update – 23/04/2026

Further Information & Support

We recommend clients review the Department of Health information linked above to understand how the Assignment of Benefit changes may apply to their clinic.

For any questions regarding the Assignment of Benefit changes, the Department of Health can be contacted at: AssignmentofBenefit@health.gov.au

For any questions relating to FYDO, please contact our Support Team at support@alturahealth.com.au or phone (02) 9632 0026 – option 6 for FYDO Clinic.

FYDO will provide additional updates as they become available.