What are Medical Gap Agreements

When you are admitted to hospital as a private patient, your specialist’s bills will be covered up to the Medicare Benefits Schedule (MBS) fee. Medicare will cover 75% of the MBS fee, while we will cover the remaining 25%. However, you may still incur an out-of-pocket cost if there’s a difference between your specialist’s fees and the combined benefit provided from Medicare and HBF.

That’s where Medical Gap Agreements come in. Our Medical Gap Agreements can help reduce these out-of-pocket costs for you.

Medicare Benefits Schedule (MBS) fee
Medical Gap

Full Cover

Provider Choice Opt-in

Provider Choice Opt-out

Direct Billing

  1. Medicare pays

  2. HBF pays (MBS fee)

  3. HBF pays (Additional benefit)

  4. Member pays (Gap)

Please contact your medical specialist and request an Informed Financial Consent (IFC). The IFC will confirm the MBS items and charges associated with your treatment. Once you have this information, contact us on 133 423 for a medical benefit quote.

Before receiving treatment, your doctor, health provider and/or hospital should provide you with a quote which sets out any out-of-pocket costs that you will be required to pay. If they do not provide this upfront, you are entitled to request this quote.

Understanding this information and knowing all the estimated costs of your procedure will allow you to provide informed financial consent for the costs of your treatment.

More information on providing Informed Financial Content can be found on the Australian Medical Association's (AMA) website.

The MBS is a list of fees for medical services set by the Australian Government for eligible hospital treatment as a private patient. For in-hospital medical services, Medicare pays 75% of the MBS fee and HBF pays the other 25%.
Provider Choice arrangement includes a schedule of maximum fees that apply when they opt-in. Unless they opt-out a Provider Choice specialist must charge you no more than what is listed in the Provider Choice fee schedule and you will have no out-of-pocket costs from their inpatient treatment.

HBF offers a choice of Medical Gap Agreements, and the specialist elects which agreement they wish to register for. If they choose to be a Full Cover specialist, they must provide all HBF members with a no-gap experience.

However, if they choose the Provider Choice agreement, they have the flexibility to opt-in or opt-out of the agreement on a case-by-case basis. This means that the out-of-pocket cost may vary from surgery to surgery or member to member.

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