Guide to Understanding the Medicare Safety Net

The Federal Government introduced the Medicare Plus safety net in February 2004 with strong support from the AMA. The safety net provides that the difference between the doctor's charge and the Medicare rebate counts towards the $300 eligibility threshold for concession card holders and Family Tax Benefit A recipients and the $700 threshold for the remainder. Once the thresholds are met the safety net covers 80% of the difference between the doctor's charge and the Medicare rebate. Eligibility for the threshold lapses on 31 December each year and must be re-established from January 1 each year.