Will Medicare cover a session I do from home?
For many mental health and allied health services, a rebate may be available. If you have the right referral and care plan, a Medicare card and a secure video connection, your telehealth sessions can attract a rebate on the same basis as an in-person session, where the MBS item requirements are met. That is the short version. The longer version involves a few structural rules that trip people up, so this guide walks through each of them plainly.
If you want the full Mental Health Treatment Plan (MHTP) walkthrough, that detail is in our Medicare rebates for mental health guide. This article focuses on how telehealth rebates are structured: the video versus phone distinction, the existing relationship rule, interstate access and which disciplines at CareDirect may attract rebates.
How telehealth went from temporary to permanent
Before 2020, Medicare telehealth items were mostly limited to rural and remote patients. COVID-19 changed that overnight, and the expanded access was made permanent in 2022 as a standing feature of the Medicare Benefits Schedule. Telehealth is not a workaround or a concession anymore. It is part of how the system is designed to work.
The existing relationship rule and why it matters less for mental health than you might think
Here is where most people get confused, and understandably so.
For GP telehealth consultations, Medicare generally requires that the patient has seen that GP or someone at the same practice in person at least once in the previous 12 months. This is the “existing relationship” requirement. Exceptions apply for patients in rural and remote areas, children under 12, people who are homeless, patients in COVID-19 isolation and people attending their first appointment after a GP has formally accepted them as a new patient.
What most people do not realise is that this rule applies to your GP’s telehealth consultation, not to the allied health sessions that follow from a referral. Once your GP has prepared an MHTP and referred you to a psychologist or social worker, that clinician does not need to have seen you in person first. They can deliver all of their rebated sessions via telehealth from the outset.
So the practical question is usually just this: can your GP consult you via telehealth to prepare the referral? If you have seen them in person in the past 12 months, almost certainly yes. If you are new to the practice and do not meet one of the exceptions, you may need one in-person visit first. The CareDirect nurse-led intake is a good place to map this out before you commit to anything.
Video versus phone: what the difference actually means for your rebate
Not all telehealth is treated equally under the MBS. The delivery mode affects which item numbers are available and, in some cases, what you receive back.
Video consultations
Video has the broadest set of telehealth item numbers across mental health allied health. A secure video session with an eligible psychologist, social worker, occupational therapist or dietitian under a current referral and care plan may attract a rebate equivalent to the in-person item, where the MBS item requirements are met. CareDirect sessions are delivered via encrypted video as standard.
Phone consultations
Phone (audio only) has its own item numbers. For mental health allied health sessions delivered under an MHTP, the video items generally attract higher rebates than the equivalent phone items for the same session length. Phone items exist for patients who genuinely cannot access video, but the rebate structure reflects the difference. All CareDirect clinical sessions default to video, which means you are accessing the higher-value item numbers unless there is a specific reason to use phone.
Which disciplines attract telehealth Medicare rebates
A rebate may be available for each eligible discipline below only where the practitioner type, referral, care plan and MBS item requirements are met.
| Discipline | Telehealth rebate pathway (where eligible) | Referral or plan required |
|---|---|---|
| Psychology | Better Access (MHTP), up to 10 sessions per year | GP, via MHTP |
| Social worker counselling | Better Access (MHTP) | GP, via MHTP |
| Occupational therapy | Better Access (MHTP) for mental-health OT, or CDM | GP, via MHTP or CDM |
| Dietetics | Chronic Disease Management (CDM) or Eating Disorder Plan | GP, via CDM or EDP |
| Mental health nursing | Private or specific funded arrangements only | Not applicable |
| Nurse-led intake | Free, not billed to Medicare | Not required |
Mental health nursing does not attract a standard Better Access rebate via the MBS. It is offered as a private or specifically funded service. It still sits at the centre of care coordination and the intake process. The nurse-led intake itself is free and is the starting point for every CareDirect care journey.
Does it matter where in Australia you are?
No. Medicare is a national programme and AHPRA registration is national. A CareDirect psychologist based in Melbourne can deliver a telehealth session to a patient in Broome. Where the patient is eligible, the rebate is the same as it would be if they were in the same suburb. State borders do not change your rebate eligibility.
The registering bodies for each discipline (AHPRA for psychologists, occupational therapists and nurses; AASW for social workers; APD for dietitians) all issue national credentials. State borders are not a factor. For a fuller comparison of how location and access play out in practice, see our guide to telehealth vs in-person care.
What telehealth does not change
Telehealth does not give you a larger rebate or a more generous entitlement than in-person care. The item numbers mirror their in-person equivalents. What you gain is the ability to claim any rebate you are eligible for without travel, without waiting rooms and without limiting your clinician choices to whoever happens to be nearby. The financial structure stays the same.
This means your out-of-pocket cost is broadly comparable to in-person care. The exact rebate depends on the current MBS rate for the relevant item and your eligibility, so it is worth confirming the current amount. Your nurse-led intake will confirm current fees and your eligibility before your first clinical session.
How CareDirect handles the claiming process
CareDirect submits eligible Medicare claims on your behalf using Medicare Online at the time of payment. You do not need to lodge the claim yourself.
To be eligible for a rebate, you generally need: the right current care plan for the discipline (an MHTP for Better Access services, or a CDM or Eating Disorder Plan for dietetics), a service that meets the relevant MBS item requirements, your Medicare card number on file with CareDirect and your bank account registered with Medicare for electronic payments. Any rebate typically arrives within one to two business days of the session. Your nurse confirms these items during the nurse-led intake so there are no delays when your first session ends.
Frequently asked questions
Do I need to have seen my GP in person before getting a telehealth referral?
Possibly. The existing relationship rule means most GPs require patients to have attended the practice in person at least once in the past 12 months before consulting by telehealth. If you have that history with your GP, they can prepare your MHTP and referral remotely. If you are new to the practice, one in-person visit may be required first unless you meet one of the exceptions (rural or remote location, under 12, homeless, or first appointment as a formally accepted new patient). Your CareDirect nurse can work through this with you during intake.
Is the rebate smaller for phone sessions than video?
In some cases, yes. The MBS has separate item numbers for phone and video, and for mental health allied health under an MHTP, the video items generally attract higher rebates than the equivalent phone items for the same session length. All CareDirect clinical sessions are delivered via secure video as standard. Phone is available as a fallback, but the rebate may be lower.
Can I see a CareDirect psychologist if they are based in a different state?
Yes. A Medicare rebate may apply to telehealth consultations between an eligible patient and a qualified practitioner regardless of location, where the referral, care plan and MBS item requirements are met. Your state and their state make no difference to your rebate eligibility. CareDirect’s team includes AHPRA-registered psychologists, occupational therapists and dietitians, AASW-accredited mental health social workers, credentialled mental health nurses, and qualified counsellors.
Is the nurse-led intake covered by Medicare?
No. The nurse-led intake is free and sits outside the MBS rebate framework entirely. It is not billed to Medicare and requires no referral. If your intake results in a referral and care plan, subsequent sessions with eligible clinicians may then attract rebates through the pathways described in this guide, where the MBS item requirements are met.
Ready to work out what applies to you?
Medicare’s rules are genuinely complicated, and there is no shame in finding them confusing. CareDirect’s nurse-led intake takes around 30 minutes, costs nothing and maps out which rebates you may be eligible for, what referrals you need and which clinicians suit your situation.
Book your intake to get started. No referral needed, no cost to begin.
Individual results vary based on your unique circumstances. Assessment findings do not guarantee a particular outcome.
