March 2011 - Australian Optometry article
Understanding the Common Form of Undertaking
Medicare Australia pays benefits for services provided by optometrists who have signed a Common Form of Undertaking: Participating Optometrists. However there are circumstances in which patients can still claim Medicare benefits for a service by an optometrist who has not personally entered into an undertaking.
This commonly occurs when an optometrist is an employee rather than a business owner. Medicare benefits are still payable for services by an employee optometrist provided that the employer has signed a Common Form of Undertaking and the employee has completed a Schedule of optometrists on whose behalf optometrical services are provided by a non participating optometrist application form. Relevant forms are available online at
www.medicareaustralia.gov.au then For health professionals > Forms, publications and statistics >Medicare Forms > Optometrists
Note: an optometrist intending to work as an employee rather than as a business owner can still choose to sign a Common Form of Undertaking: Participating Optometrists document instead of the Schedule of optometrists on whose behalf optometrical services are provided by a non participating optometrist document.
As part of each undertaking, the optometrist agrees to “take all reasonable steps to ensure that all items are billed in accordance with this undertaking and the appropriate Medicare items” (Health Insurance Act 1973). Incorrect claiming, fraud or inappropriate practice may result in compliance interventions, including a possible request to the Director of the Professional Services Review (PSR). Both the employer optometrist and the employee optometrist may have their provision of services reviewed by the Director of PSR. If recovery of Medicare benefits is sought, the employer optometrist will be responsible for the repayment.
Medicare Australia reminds optometrists of their responsibilities under their undertaking to take reasonable steps to make sure items are billed appropriately, and employers to oversee the billing procedures within their practice.
For more information call Medicare Australia on 132 150*.
* Call charges apply.
Last updated: 7 July, 2011