Why this matters for your practice
Assignment of benefit is the mechanism that turns a consultation into a bulk-billed service, and it is a genuine compliance requirement, not a formality. To bulk bill, a practice must obtain the patient's agreement to assign their Medicare benefit to the provider, and keep evidence of it. Historically this meant a signed paper form (the DB4 or equivalent), which is awkward for phone and telehealth consultations. Since 1 July 2026 the rules allow an electronic signature, and a transitional instrument allows verbal agreement until 30 June 2027.
Because bulk billing volumes are rising under the BBPIP, getting assignment of benefit right at scale matters more than ever.
What changed on 1 July 2026
- Electronic agreement allowed: the assignor's signature can be electronic (a tablet signature, a typed name, an "I accept" action) provided it complies with the Electronic Transactions Act 1999, not only on paper.
- Timing flexibility: the agreement can be made before or after the service, as long as it is in place before the claim is lodged.
- Record-keeping: the practice must retain the completed agreement for two years and give the patient a copy on request.
- Verbal agreement, until 30 June 2027: the Health Insurance Amendment (Assignment of Medicare Benefits) Regulations 2026 (F2026L01041), made on 6 August 2026 and back-dated to 1 July 2026, allow an episodic or enduring agreement entered into between 1 July 2026 and 30 June 2027 to be made on the assignor's verbal agreement. The record must say that verbal agreement was given and the date it was given, and an enduring agreement made verbally ceases at the start of 1 July 2027.
What you still must do
- Obtain the patient's genuine agreement to assign the benefit for that service.
- Keep an auditable record of the consent.
- Make sure the patient is not charged a gap for a bulk-billed service, because assignment of benefit means the Medicare benefit is accepted as full payment.
How it connects to bulk billing incentives
A correctly assigned, bulk-billed service is what attracts the bulk billing incentive items and, for participating practices, the BBPIP loading. Weak or missing assignment records undermine the integrity of those claims.
Common mistakes
- Treating consent as optional for routine bulk billing.
- No retained evidence, leaving claims unsupported at audit.
- Charging a gap on a service that was bulk billed.
- Assuming paper is still required now that the electronic option is available.
- Recording only "verbal" in the signature field, without the date the verbal agreement was given.
Frequently Asked Questions
What is assignment of benefit in Medicare?
Assignment of benefit is when a patient agrees to assign their Medicare benefit to the provider, which is what makes a service bulk billed. The provider accepts the Medicare benefit as full payment for the service, and the practice must keep a record of the patient's agreement.
Can bulk billing consent be digital?
Yes. Since 1 July 2026 the assignor's signature can be electronic as well as physical, provided it reliably identifies them and indicates their agreement. The agreement can be made before or after the service, and the completed record must be kept for two years. Verbal agreement is also available until 30 June 2027.
How long do I have to keep assignment of benefit records?
Since 1 July 2026, practices must retain the completed assignment of benefit agreement for two years and provide a copy to the patient on request. Using verbal agreement does not change that: the finished agreement is still a written record that has to be stored and produced if it is reviewed.
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