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.

Recording Verbal Consent During the Transition Period

Since 1 July 2026, verbal consent has been accepted for Assignment of Benefit. However, the legislative requirement to retain a completed Assignment of Benefit agreement for two years, and provide a copy to the patient upon request, still applies.

MediRecords does not yet have a dedicated verbal consent workflow. Until it's released, the recommended approach is to print the standard Assignment of Benefit form (formerly the DB4), complete the required details (including whether the assignor is the patient), and record "Verbally consented" in the signature field, along with the date consent was obtained. The completed form can then be uploaded and stored in the patient's Consent tab.

A note in the clinical record alone, or relying on undocumented verbal consent or staff recollection, may not be sufficient to demonstrate compliance. It may also leave you unable to provide the patient with a copy of the completed Assignment of Benefit agreement if requested.

During this transition period, maintaining a completed Assignment of Benefit form is the simplest way to help ensure you're meeting your legislative obligations until the MediRecords verbal consent workflow is available.

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)