If you're considering CO2 laser resurfacing, one of the first questions you may have is:

“Does Medicare or private health insurance cover CO2 laser resurfacing?”

The short answer is: usually not when CO2 laser resurfacing is performed for cosmetic purposes.

However, the situation can be different when laser resurfacing is part of medically necessary treatment, such as certain severe scarring or reconstructive treatment. Australian government health information confirms that Medicare generally does not cover services that are not clinically necessary or procedures performed solely for cosmetic reasons.

There are also specific Medicare Benefits Schedule (MBS) items for some medically necessary CO2 or erbium laser resurfacing procedures. For example, MBS items 45025 and 45026 cover certain non-fractional CO2 or erbium laser resurfacing procedures for severely disfiguring scarring resulting from trauma, burns or acne, subject to the item requirements.

So, if you're researching CO2 laser resurfacing for skin rejuvenation, wrinkles, pigmentation or general cosmetic improvement, you should generally expect to pay privately.

Let's look at how Medicare and private health insurance work.

Quick Answer: Does Medicare Cover CO2 Laser Resurfacing?

Generally, Medicare does not cover cosmetic CO2 laser resurfacing.

Medicare provides benefits for eligible medical services listed under the Medicare Benefits Schedule. It does not generally provide benefits for treatment that is solely cosmetic or not clinically necessary.

For example, if you're having CO2 laser resurfacing primarily to improve:

• Fine lines

• Wrinkles

• General skin texture

• Enlarged pores

• Sun-related skin changes

• Cosmetic pigmentation concerns

• Overall skin rejuvenation

you should not assume that Medicare will provide a rebate.

Cosmetic treatment is generally an out-of-pocket expense.

Can Medicare Ever Cover CO2 Laser Resurfacing?

In specific medically necessary circumstances, potentially yes.

This is where the answer becomes more complicated.

The MBS includes specific items for certain medically necessary laser resurfacing procedures.

For example, the Australian government's private health insurance information lists MBS items 45025 and 45026 for carbon dioxide or erbium laser resurfacing of the face or neck for severely disfiguring scarring resulting from trauma, burns or acne. These items specifically exclude fractional laser therapy and have requirements attached to them.

This is very different from having a cosmetic CO2 laser treatment simply because you want smoother or younger-looking skin.

The key distinction is:

Cosmetic purpose:
Usually not Medicare-covered.

Medically necessary treatment meeting an applicable MBS item:
A Medicare benefit may potentially apply.

Whether a particular procedure qualifies depends on the exact clinical circumstances and the applicable MBS requirements.

What About CO2 Laser for Acne Scars?

This is an area where people should be particularly careful about assuming coverage.

Having acne scars doesn't automatically mean that CO2 laser treatment will be covered by Medicare.

The MBS contains specific criteria for certain resurfacing procedures involving severely disfiguring scarring resulting from acne, but the listed items have particular requirements and are for non-fractional laser resurfacing.

Therefore, you shouldn't assume:

“I have acne scars, so Medicare will pay for my CO2 laser.”

Instead, the relevant question is whether the treatment and your clinical circumstances meet the requirements of an applicable MBS item.

For cosmetic acne-scar treatment at a cosmetic clinic, you should generally expect to pay privately unless your provider confirms otherwise.

Does Private Health Insurance Cover CO2 Laser Resurfacing?

Usually not when the procedure is purely cosmetic.

Private health insurance doesn't automatically cover every treatment performed using medical equipment or every procedure performed by a healthcare professional.

Private hospital insurance generally relates to services covered under applicable hospital policies and MBS arrangements.

PrivateHealth.gov.au explains that services not listed on the MBS, such as elective cosmetic surgery, may only be covered to a limited extent or may not be covered at all, depending on the policy.

Healthdirect also states that cosmetic surgery is not usually covered by Medicare or private health funds.

That means having private health insurance doesn't necessarily make cosmetic CO2 laser resurfacing claimable.

What If You Have Hospital Cover?

Having hospital cover doesn't automatically mean your insurer will pay for CO2 laser resurfacing.

Private hospital policies are structured around particular clinical categories and MBS services.

For example, the government explains that private hospital policies cover different categories of hospital treatment depending on the policy, while some services that Medicare does not pay benefits for may be excluded or restricted.

If your CO2 laser treatment is purely cosmetic, your hospital policy may not provide benefits for it.

If the procedure is medically necessary and associated with an applicable MBS item, the situation may be different.

What If Your CO2 Laser Treatment Is Medically Necessary?

This is where private health insurance may become relevant.

PrivateHealth.gov.au identifies a Skin clinical category covering hospital treatment for the investigation and treatment of skin and skin-related conditions, including medically necessary plastic surgery relating to skin conditions.

The government also lists specific CO2/erbium laser resurfacing MBS items under medically necessary plastic and reconstructive surgery.

However, this doesn't mean every medically motivated CO2 laser treatment is automatically covered.

Your treatment needs to meet the applicable requirements, and your specific insurance policy needs to provide appropriate cover.

Why Does Cosmetic vs Medical Purpose Matter?

The distinction between cosmetic treatment and medically necessary treatment is important because Medicare is designed to subsidise eligible healthcare services, not elective cosmetic procedures.

For example:

Cosmetic CO2 laser resurfacing

You want to improve:

• Wrinkles

• Skin texture

• Fine lines

• Pigmentation

• General skin appearance

• Signs of ageing

Usually: self-funded.

Medically necessary resurfacing

The procedure is being considered for a qualifying medical or reconstructive purpose, such as certain severe disfiguring scars.

Potentially: an applicable Medicare benefit may exist, depending on the specific MBS item and requirements.

The difference is not simply the type of laser being used.

It's also about why the treatment is being performed and whether the treatment meets the relevant eligibility requirements.

Does Having a Medicare Card Mean You Get a Rebate?

No.

Having a Medicare card does not mean every medical or cosmetic treatment is eligible for a Medicare rebate.

Medicare benefits are tied to eligible services, including services listed on the MBS.

This is why it's important to ask about Medicare eligibility before booking treatment, rather than assuming that a rebate will be available.

Does the Medicare Safety Net Cover Cosmetic CO2 Laser?

You shouldn't assume it does.

The Medicare Safety Nets apply to eligible services listed on the Medicare Benefits Schedule. Healthdirect explains that Medicare Safety Nets only cover services listed on the MBS.

Therefore, if your cosmetic CO2 laser treatment isn't an eligible Medicare service, simply having significant medical expenses during the year doesn't automatically make the cosmetic treatment claimable through the Safety Net.

Can Private Health Insurance Pay for Cosmetic CO2 Laser?

Generally, you should not assume it will.

Private health insurance policies vary, and the government recommends checking exactly what your policy covers and what costs you may need to pay yourself.

Private health insurance can cover certain treatments that Medicare doesn't cover, but that doesn't mean every cosmetic treatment is included.

Before relying on your insurance, ask your insurer specifically about:

• CO2 laser resurfacing

• The treatment location

• Whether the treatment is cosmetic or medically necessary

• The relevant MBS item number, if applicable

• Hospital cover requirements

• Waiting periods

• Exclusions

• Restrictions

• Excesses

• Out-of-pocket costs

What If My Insurance Policy Says It Covers Skin Treatment?

This still doesn't necessarily mean your CO2 laser treatment will be covered.

Some private health insurance policies include skin-related hospital treatment, but the exact services and MBS items covered depend on the policy.

PrivateHealth.gov.au explains that policies can have exclusions and restrictions, and restricted benefits can leave patients with significant out-of-pocket expenses.

The safest approach is to ask the insurer about the specific treatment and item number, rather than asking only whether “skin treatments” are covered.

What Questions Should You Ask Your Health Insurer?

Before booking a medically indicated CO2 laser procedure, consider asking:

1. Is this procedure covered under my policy?

2. Is the specific MBS item covered?

3. Does my policy have an exclusion or restriction for this treatment?

4. Is there a waiting period?

5. What hospital costs are covered?

6. What medical fees are covered?

7. Will I have an excess or co-payment?

8. Could there be a gap between the MBS fee and the doctor's fee?

9. Are consumables, medicines or dressings covered?

10. What amount should I expect to pay myself?

PrivateHealth.gov.au provides a policy lookup tool that allows consumers to check their policy using their insurer or Private Health Information Statement.

What About Out-of-Pocket Costs?

Even when a treatment is covered, covered doesn't necessarily mean free.

Private health insurance can involve:

• Excesses

• Co-payments

• Gap fees

• Restricted benefits

• Doctor fees above the MBS fee

• Hospital accommodation costs

• Theatre fees

• Other treatment-related expenses

Healthdirect explains that private patients can have out-of-pocket expenses even when Medicare and private insurance contribute to the costs.

That's why getting a clear cost estimate before treatment is important.

Why You Shouldn't Assume a Cosmetic CO2 Laser Treatment Is Covered

One of the most common misunderstandings is:

“It's a medical laser, so Medicare or my health insurance should cover it.”

That's not how coverage works.

The fact that a treatment uses a medical device, is performed in a clinical environment or is delivered by a healthcare professional does not automatically make it Medicare-rebateable.

The purpose of treatment, applicable MBS item and insurance policy all matter.

For most people considering CO2 laser resurfacing for cosmetic skin improvement, the practical expectation should be that the treatment is self-funded.

What If You Are Considering CO2 Laser for Acne Scarring?

If you're considering treatment specifically for severe acne scarring, ask your doctor or specialist whether your circumstances meet an applicable MBS item.

This is particularly important because the MBS has specific items for certain severely disfiguring scars resulting from acne, but the listed CO2/erbium resurfacing items have specific criteria and exclude fractional laser therapy.

Don't assume that every acne-scar laser treatment qualifies.

Ask your medical provider to explain:

• The diagnosis

• The reason for treatment

• The relevant MBS item, if any

• Whether the treatment is medically necessary

• Whether Medicare benefits apply

• Whether your private insurer provides hospital cover for the procedure

Can a Cosmetic Clinic Tell You Whether Medicare Will Pay?

A clinic can explain its own treatment, pricing and payment arrangements, but Medicare eligibility depends on the applicable rules and circumstances.

If you are considering treatment because of a medical condition or significant scarring, it's sensible to discuss eligibility with the relevant medical practitioner and confirm coverage with Medicare or your health insurer before proceeding.

Your insurer is the appropriate source for confirmation of what your specific policy covers.

What Should You Do Before Booking CO2 Laser?

Before booking, ask the clinic:

About the treatment

• What type of CO2 laser is being used?

• Is the treatment fractional or non-fractional?

• What is the treatment intended to address?

• Is the procedure cosmetic or medically indicated?

• Who will perform the treatment?

About costs

• What is the total treatment cost?

• Are consultations included?

• Are follow-up appointments included?

• Are aftercare products additional?

• Are there any other fees?

About Medicare

• Is there an applicable MBS item?

• Is a Medicare benefit potentially available?

• If so, what requirements apply?

About private health insurance

• Is hospital treatment involved?

• Does the clinic work with private hospital insurance?

• Which MBS item applies?

• Should I contact my insurer before booking?

Getting these answers before treatment can prevent an unexpected bill later.

Does Medicare Cover CO2 Laser for Wrinkles?

Generally, no.

If CO2 laser resurfacing is being performed to reduce wrinkles or improve the appearance of ageing skin, it is generally considered cosmetic rather than medically necessary.

Medicare does not generally cover surgery performed solely for cosmetic reasons.

Therefore, patients seeking CO2 laser resurfacing for cosmetic anti-ageing purposes should generally expect to pay privately.

Does Medicare Cover CO2 Laser for Skin Rejuvenation?

Generally, no.

Skin rejuvenation, texture improvement and cosmetic resurfacing are generally not the type of treatment Medicare is designed to subsidise.

If your treatment is being performed for a qualifying medical condition or reconstructive purpose, the circumstances may be different.

Does Private Health Insurance Cover CO2 Laser for Acne Scars?

It depends on the circumstances and policy.

Some medically necessary procedures involving severe scarring may fall within MBS categories, and private hospital insurance may provide cover where the relevant requirements and policy conditions are met.

But a cosmetic CO2 laser treatment for ordinary acne scarring is not automatically covered simply because the patient has acne scars.

Ask your doctor and insurer to confirm eligibility.

Medicare vs Private Health Insurance: The Simple Explanation

Think of it this way:

Medicare:
May provide benefits for eligible medical services under the MBS. It generally does not cover treatment performed solely for cosmetic reasons.

Private health insurance:
May provide additional cover depending on your policy, particularly for eligible hospital treatment. However, exclusions, restrictions and policy-specific conditions can apply.

Cosmetic CO2 laser:
Usually self-funded.

Medically necessary CO2 laser treatment:
Potentially different, depending on the clinical circumstances, applicable MBS item and insurance policy.

Final Takeaway

So, does Medicare or private health insurance cover CO2 laser resurfacing?

For most people having CO2 laser resurfacing for cosmetic skin concerns, the answer is generally no. You should expect to pay for cosmetic treatment yourself rather than assuming that Medicare or your private health insurer will provide a rebate.

However, there are specific MBS items for certain medically necessary CO2 or erbium laser resurfacing procedures, including particular cases involving severely disfiguring scarring from trauma, burns or acne. These items have specific requirements and are not the same as routine cosmetic fractional CO2 laser treatment.

Before booking, confirm:

• Whether your treatment is cosmetic or medically necessary

• Whether an MBS item applies

• Whether Medicare provides a benefit

• Whether your private health insurance covers the procedure

• Whether waiting periods or exclusions apply

• What your expected out-of-pocket costs will be

When in doubt, confirm your eligibility with Medicare and your private health insurer before treatment rather than relying on assumptions.

Frequently Asked Questions

Does Medicare cover cosmetic CO2 laser resurfacing?

Generally, no. Medicare does not generally cover services or surgery performed solely for cosmetic reasons.

Does private health insurance cover cosmetic CO2 laser?

Usually, you should not assume it does. Private health insurance policies vary, and elective cosmetic procedures may be excluded or not covered.

Can Medicare cover CO2 laser for severe acne scarring?

Potentially, in specific circumstances. The MBS includes certain non-fractional CO2 or erbium laser resurfacing items for severely disfiguring scarring resulting from trauma, burns or acne, subject to the requirements of the applicable item.

Does having private health insurance guarantee coverage?

No. Your policy may have exclusions, restrictions, waiting periods, excesses or other conditions. Check with your insurer before treatment.

Does the Medicare Safety Net cover cosmetic laser treatment?

The Medicare Safety Nets only apply to eligible services listed on the MBS, so they do not automatically make cosmetic laser treatments claimable.

Should I contact my insurer before CO2 laser treatment?

Yes. If you believe your treatment may be medically necessary or potentially eligible for insurance coverage, confirm the exact procedure, MBS item and expected costs with your insurer before booking.