The following FAQ’s cover what radiology practices need to know about the assignment of benefit changes taking effect from 1 July 2026.
What is an Assignment of Benefit?
Assignment of benefit is the process by which a patient formally agrees to transfer their Medicare benefit to their healthcare provider as full payment for a bulk-billed service. It is a legal requirement for every bulk-billed Medicare claim.
What is changing on 1 July 2026?
Verbal assignment of benefit will no longer be accepted. Every bulk-billed service will require a written or electronic patient signature on a compliant assignment of benefit agreement. The existing DB4e and DB020 approved forms will be retired. Practices can use any form that captures the required ‘data set’, and the signature of the patient or authorised person.
Does the practitioner need to sign the agreement?
No. Under the new rules, only the patient or an authorised person is required to sign. Practitioners no longer need to countersign.
Can assignment be captured before the examination?
Yes. Pre-service episodic assignment allows the patient to sign before the examination takes place. The form can reference a basic service description rather than a specific MBS item number. This is expected to be the most common approach for radiology practices, as it fits naturally into the check-in workflow.
Can assignment be captured after the examination?
Yes. Post-service episodic assignment allows the patient to sign after the examination is complete, provided the agreement is in place before the Medicare claim is lodged. Post-service agreements must reference the specific MBS item numbers for the services rendered.
What counts as a valid electronic signature?
An electronic signature must meet the requirements of the Electronic Transactions Act 1999. It must reliably identify the person, indicate their consent through a deliberate action, and be auditable. A touchscreen signature at check-in, a checkbox in a patient portal, or a typed name in a digital form are all likely to qualify. A staff member verbally noting consent in the record does not.
Who can sign if the patient cannot sign for themselves?
A parent, carer, partner, relative, friend, or someone holding Power of Attorney can act as the authorised assignor. Practice staff cannot act as the assignor due to conflict of interest, unless they are also the patient’s parent or carer in a non-professional capacity.
How long do practices need to retain completed agreements?
Every completed assignment of benefit agreement must be retained for two years from the date the Medicare claim is made. Practices must be able to produce a copy for the patient on request and make agreements available to Services Australia in the event of a compliance audit.
Is there a transition period for imaging practices?
No. Unlike pathology, which has a 12-month transition period for old referral forms, there is no transition period for imaging services. From 1 July 2026, all bulk-billed imaging services require a compliant agreement, including resubmissions and adjustments for services rendered before that date.
Does Karisma support the new assignment of benefit requirements?
Yes. Kestral is delivering the required changes across the K3 and K4, with all work scheduled to be completed before 1 July 2026. Practices using Karisma will not need to make separate arrangements to remain compliant.
Where can I find more information about the assignment of benefit changes?
The Department of Health, Disability and Ageing has published a frequently asked questions document covering the regulatory changes in full. The full regulatory detail is in the Health Insurance Amendment (Assignment of Medicare Benefits and Other Measures) Regulations 2025. Services Australia will publish example agreement templates on its website before 1 July 2026. For direct enquiries, contact the Department at AssignmentofBenefit@health.gov.au.