• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

SuperGuide

Superannuation and retirement planning information

  • SuperGuide Premium
  • Account
  • Log In
  • SuperGuide Premium
  • Account
  • Log In
  • How super works
    • Super for beginners
    • Super rules
    • Employers guide to super
    • Super contributions
    • Super and tax
    • Accessing super
    • Super news
    • Women and super
    • Super tips and strategies
    • How-to guides
    • Super quizzes
    • Superannuation Q&As
    • Superannuation glossary
  • Super funds
    • Best performing super funds
    • Super fund rankings
    • Best performing pension funds
    • Pension fund rankings
    • Super fund average returns
    • Super investing strategies
    • Comparing super funds
    • Choosing a super fund
    • Choosing an investment option
    • Super fund fees
    • Insurance and super
    • Super fund profiles
  • SMSFs
    • SMSFs for beginners
    • SMSF administration
    • SMSF checklists
    • SMSF compliance
    • SMSF investing
    • SMSF pensions
    • SMSF strategies
    • SMSF Q&As
  • Plan your retirement
    • Retirement planning for beginners
    • When should I retire?
    • How long will I live?
    • How much super do I need?
    • Will I get the Age Pension?
    • How much will I spend in retirement?
    • Financial advice
    • Retiring overseas
    • Preparing for retirement
    • Retirement planning strategies
    • Retirement calculators and reckoners
  • In retirement
    • Income in retirement
    • Super lump sums
    • Super pensions
    • Age Pension
    • Working in retirement
    • Life in retirement
    • Senior concessions and services
    • Aged care
    • Estate planning
    • Super death benefits

Home / In retirement / Senior concessions and services / What is the Medicare Safety Net?

What is the Medicare Safety Net?

February 3, 2021 by SuperGuide Leave a Comment

Reading time: 2 minutes

On this page

  • What are the benefits of the Medicare Safety Net?
  • Who is eligible?
  • How do you apply?

The Medicare Safety Net is a Department of Human Services benefit that provides a higher subsidy for the cost of out-of-hospital doctor’s visits than the standard Medicare rebate. Eligible singles, couples (married or de facto) and families can receive one of two potential Medicare Safety Net benefits once they reach certain medical cost thresholds:

  • The Original Medicare Safety Net (this is available for anyone who is enrolled in Medicare)
  • The Extended Medicare Safety Net (this is an extra benefit payable for singles, couples and families who have high out-of-pocket costs for non-hospital services).

Seniors holding a Pensioner Concession Card or CSHC can access the Extended Medicare Safety Net for Concessional and Family Tax Benefit Part A recipients. For more information, see the Services Australia’s website here.

To understand how the Medicare Safety Net works, it’s important to first understand how the standard Medicare rebate works. Medicare rebates are based on a list of standard fees for medical services that are outlined in the federal government’s Medicare Benefits Schedule (MBS).

However, doctors are free to set their own fees, so they may charge more than the fee listed in the MBS. The government only provides a rebate of 85% of the amount listed in the MBS for out-of-hospital doctor visits, meaning that a patient has to pay any additional amount out of their own pocket (this is known as the gap amount). This cost will be at least 15% of the doctor’s fee if they charge the same rate listed in the MBS, or more if they charge higher rates.

What are the benefits of the Medicare Safety Net?

Types of out-of-pocket, non-hospital medical expenses that can be covered by eligible recipients of the Medicare Safety Net include:

  • GP consultations
  • Blood tests
  • Pap smears
  • CT scans
  • X-rays
  • Ultrasounds
  • Tissue biopsies

Who is eligible?

To be eligible to receive a Medicare Safety Net Benefit, your out-of-pocket medical expenses for non-hospital doctor visits must be higher than the relevant threshold outlined in the table below. These amounts are adjusted each year on 1 January.


Advertisement
SuperGuide Premium is ad-free
Type of Medicare Safety Net rebateThreshold amountBenefit you receive when you reach the threshold
Original$481.20 in total gap amount payments. Note that any premium that your doctor may charge above the MBS rate is not included in this $470 threshold.100% of the MBS fee (instead of 85%)
Extended$2,184.30 in all out-of-pocket costs (or $697.00 if you are a concession cardholder or are eligible for Family Tax Benefit Part A). Note that the threshold amounts for the Extended Medicare Safety Net rebate do include any premium that your doctor may charge above the MBS rate, as well as the gap amount).80% of all remaining out-of-pocket costs (including additional fees that may be charged by your doctor that are above MBS rates).However, there are benefit caps for some types of medical treatments.

The Department of Human Services keeps a record of your Medicare claims and tallies your out-of-pocket non-hospital expenses each year. Once you reach the relevant thresholds outlined in the above table as a single (or a couple/family if you are registered), you’ll automatically be paid the corresponding Medicare Safety Net amount.

How do you apply?

Single people are automatically registered for the Medicare Safety Net.

However, couples and families need to formally register via the Department of Human Services’ website or by phoning them, even if all family members are already listed on the same Medicare card.

Registering as a couple or a family will allow you to reach the out-of-pocket threshold costs (and therefore Medicare Safety Net benefits) sooner. Family registrations can include single or couple parents with dependent children under the age of 16, or with full-time students between the ages of 16 and 25.

Seniors holding a Pensioner Concession Card or CSHC can access the Extended Medicare Safety Net for Concessional and Family Tax Benefit Part A recipients. For more information, see the Services Australia’s website here.

The information contained in this article is general in nature.

Compare super funds

Read more...

Advertisement

Learn more about retiree concessions in the following SuperGuide articles:

What government services are available for older Australians?

September 1, 2020

What concession cards are available for Seniors and Pensioners?

January 15, 2020

Your simple guide to state Seniors Cards: How they can save you money

January 1, 2020

Commonwealth Seniors Health Card: What it is and how to apply

October 15, 2019

Related topics

In retirement Senior concessions and services

IMPORTANT: All information on SuperGuide is general in nature only and does not take into account your personal objectives, financial situation or needs. You should consider whether any information on SuperGuide is appropriate to you before acting on it. If SuperGuide refers to a financial product you should obtain the relevant product disclosure statement (PDS) or seek personal financial advice before making any investment decisions. Comments provided by readers that may include information relating to tax, superannuation or other rules cannot be relied upon as advice. SuperGuide does not verify the information provided within comments from readers. Learn more

© Copyright SuperGuide 2009-21. Copyright for this article belongs to SuperGuide Pty Ltd, and cannot be reproduced without express and specific consent. Learn more

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

How super works
Super for beginners
Super rules
Employers guide to super
Super contributions
Super and tax
Accessing super
Super news
Women and super
Super tips and strategies
How-to guides
Super quizzes
Superannuation Q&As
Superannuation glossary
Super funds
Best performing super funds
Super fund rankings
Best performing pension funds
Pension fund rankings
Super fund average returns
Super investing strategies
Comparing super funds
Choosing a super fund
Choosing an investment option
Super fund fees
Insurance and super
Super fund profiles
SMSFs
SMSFs for beginners
SMSF administration
SMSF checklists
SMSF compliance
SMSF investing
SMSF pensions
SMSF strategies
SMSF Q&As
Plan your retirement
Retirement planning for beginners
When should I retire?
How long will I live?
How much super do I need?
Will I get the Age Pension?
How much will I spend in retirement?
Financial advice
Retiring overseas
Preparing for retirement
Retirement planning strategies
Retirement calculators and reckoners
In retirement
Income in retirement
Super lump sums
Super pensions
Age Pension
Working in retirement
Life in retirement
Senior concessions and services
Aged care
Estate planning
Super death benefits
Advertisement
Compare super funds

Join SuperGuide Premium and give your retirement plans a boost.

Get access to independent expert commentary on the latest super, retirement and SMSF issues, including the top performing super and pension funds, how much super is enough, the latest super rates and thresholds and new super measures and strategies.

You’ll have access to more than 600 articles, how-to super guides, checklists, tips, calculators, reckoners and other tools, as well as a monthly newsletter.

Find out more

Footer

Important: Disclaimer

All information on SuperGuide is general in nature only and does not take into account your personal objectives, financial situation or needs.

You should consider whether any information on SuperGuide is appropriate to you before acting on it.

If SuperGuide refers to a financial product you should obtain the relevant product disclosure statement (PDS) or seek personal financial advice before making any investment decisions.

Learn more

About SuperGuide

SuperGuide is Australia’s leading superannuation and retirement planning website. Learn more

Superguide Pty Ltd ATF Superguide Unit Trust as a Corporate Authorised Representative (CAR) is a Corporate Authorised Representative of Independent Financial Advisers Australia, AFSL 464629

  • Contact us
  • Advertise on SuperGuide
  • Careers

Before using this website

  • New to SuperGuide?
  • Terms and Conditions of Use
  • Financial Services Guide
  • Privacy Policy and Privacy Collection
  • Copyright Policy
  • Editorial Policy and Complaints
  • Disclaimer

  • SuperGuide Premium
  • Subscriber feedback
  • Sitemap