Medicare Cheques to End by 2028, But GPs Raise Concerns About New Payment Plan
10 Mar 2026
Medicare rebate cheques will be phased out by July 2028, but the RACGP says parts of the Federal Government’s replacement plan could cause problems for general practices.
The Government announced plans last year to remove cheque payments from the Pay Doctor Via Claimant (PDVC) system. This system lets patients pay only the difference between the Medicare rebate and the doctor’s full fee, often called “gap-only” billing.
While the RACGP supports moving away from cheque payments, it has criticised the proposal to keep a payment delay of up to 90 days under the new electronic system. The college says this delay makes the model financially difficult for general practices.
In the past financial year, around 870,000 Medicare cheques were issued through the PDVC system, which the RACGP describes as outdated.
Under the current process, a patient pays the gap fee and receives a cheque from Services Australia made out to the doctor. If the cheque is not given to the doctor within 90 days, the payment is then transferred electronically.
The RACGP says the new system should instead allow real-time or near real-time electronic payments, similar to bulk billing. At the very least, it believes payments should be made within 30 days.
Government analysis suggests reducing or removing the 90-day delay could lead to higher prices and discourage bulk billing. But the RACGP says keeping the delay is a major weakness in the proposal.
Health officials also considered removing the PDVC system completely. However, the Department of Health, Disability and Ageing believes keeping a modernised version of gap-only billing will provide the greatest benefit for patients.
The RACGP warned that if the system does not work properly, patients may delay or avoid medical care because of costs.
According to government data, about 1.3 million services were provided through the PDVC system, with 37% used by concession card holders.
The Government is also considering limiting gap-only billing to services with fees above $697, but the RACGP says this could leave out common GP services such as long consultations that still involve significant costs for patients.
https://www1.racgp.org.au/
Source: newsGP