Assignment of Benefit Changes: What Changed on 1 July 2026

From 1 July 2026, updated government legislation changed how Assignment of Benefit (AoB) is handled for Medicare (Bulk Bill) and Inpatient Medical Claims (IMC, Agreement or Scheme). This article summarises what changed and why. For the current step-by-step process, see Assignment of Benefit: Workflow, and for common questions see Assignment of Benefit: Frequently Asked Questions (FAQs).

Contents:

1. What is Assignment of Benefit?
2. What's Changing?
3. Recording Verbal Consent During the Transition Period
4. Where to Go for Day-to-Day Guidance

What is Assignment of Benefit?

Assignment of Benefit is the process by which a patient formally assigns their Medicare or insurance benefit to your organisation, allowing you to receive payment directly from Medicare (for Bulk Bill) or the relevant funder (for inpatient claims).

It is a legal requirement, and patient consent must be properly obtained and recorded before a claim can be submitted.

What's Changing?

The updated legislation introduced a digital signature component to post-assignment models for Bulk Bill Medicare claims, and the requirement to keep a signed copy of consent for two years.

In practice, this means the way consent is captured, recorded, and tied to invoice submission became more structured, with clearer requirements around when and how Assignment of Benefit must be confirmed before a claim can proceed.

Following feedback from the profession, the government also announced a 12-month transition period beginning 1 July 2026. During this period, compliance activity focuses on prevention and education rather than enforcement, with the government committed to working with the profession to further reduce administrative burden while maintaining the integrity of Medicare.

Since this article was first published, MediRecords has released a native Verbal Consent option, along with upgrades to the SMS consent method. Both are practice-level settings and are covered below. 

Verbal Consent

Verbal Consent is now a built-in AoB consent method in MediRecords, alongside the existing printed/manual signature and SMS digital signature methods.

Staff will see a new “Verbal” option when choosing how AoB consent is being given on an invoice. To use it:

•  Select Verbal as the consent method on the invoice.

•  Confirm whether the assignor is the patient, or enter the assignor's name.

•  Save, the invoice can then be claimed straight away, with no printing or waiting on an SMS reply.

A consent record is kept on file for verbal consent in the same way it already is for SMS and printed consent, and the AoB status shown on the invoice and the invoice list will reflect a new “Verbal” state. Staff can also change a patient's consent method later, for example, switching between SMS and Verbal, if needed.

SMS Consent

Staff can now choose and verify which phone number the AoB SMS is sent to at the point of sending, rather than it only going to the number already on file. The SMS can be sent to the Patient, Next of Kin, Head of Family, or another nominated recipient for a one-off send.

The legislative requirement to retain a completed Assignment of Benefit record for two years, and provide a copy to the patient upon request, continues to apply and is met automatically through the consent record kept for verbal consent.

Where to Go for Day-to-Day Guidance

For the full step-by-step process for both Bulk Bill and Inpatient claims, including how to handle common issues, see Assignment of Benefit: Workflow. For answers to specific questions, see Assignment of Benefit: Frequently Asked Questions (FAQs).

If you have any other questions, please reach out to our support team.

Further Reading

• Assignment of Benefit Changes: What it Means for Practices
• Assignment of Benefit: Workflow
• Assignment of Benefit: Frequently Asked Questions (FAQs)