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The service provider receives only 85% of the scheduled fee but avoids the costs and risks of billing and debt collection.
The health service provider, usually a Doctor is paid 85% of the scheduled fee directly by the government by billing the patient via their Medicare card.
Where the government pays the large subsidy, the patient pays the remainder out of pocket, unless the provider of the service chooses to use bulk billing, charging only the scheduled fee, leaving the patient with no extra costs.
In order to claim the Medicare rebate, the patient then has to visit a Medicare office, fill out a claim form (for unpaid claims and claims where cash is not being refunded) and claim 75% of the scheduled fee from the government (100% for general practitioner services).