This post explains the intent of the Medicare Safety Net and how it is calculated.
Medicare keeps a running total of all your expenses claimed and your resulting out-of-pocket gap. This total resets to zero on the 1st of January each year.
During the year, once your out-of-pocket costs reach a certain threshold, Medicare will begin to pay 80% of the gap, in addition to the usual rebate. This Safety Net is intended to protect those members of the community who have multiple health issues and need more regular care.
At the time of writing this post, the threshold for individuals and families is $2,249.80 per year of out-of-pocket costs or $717.90 per year for Concession Card Holders and Family Tax Benefit Part A. To check the current rebates please follow this link.