NDIS rorts are rife. Will Butler’s reforms fix it?

NDIS reforms announced by Health Minister Mark Butler promise to address the excesses of the scheme, but will they fix the broken system? Sarah Russel asking?

History shows us that corruption is common when governments fund the private sector to provide the public good.

The transfer of public services to the private sector is at the heart of neoliberal economics. The idea is that the private sector operates more efficiently and cheaper than governments. However, rather than operating in a truly free market, NDIS (and aged care) providers have developed business models based on government subsidies rather than the needs of buyers.

Profit on People: home care is a cash cow for greedy senior providers

Dishonest providers often manage to outsmart disinterested government bureaucrats. So it’s not surprising Australian National Audit Office A range of fraud and non-compliance activity has been identified in the NDIS, including:

• providers claiming ‘ghost’ participants or expired plans;
• to claim from the plans of participants who are hospitalized or confined abroad for long periods of time (and are therefore ineligible for NDIS supports);
• submit a request for services not provided;
• overcharging or double charging;
• double dipping between government programs.

In addition, the Australian Criminal Intelligence Commission (ACIC) recently said in a review of the integrity of the NDIS: organized crime gangs They use the national disability insurance scheme to launder money, generate income and hide their assets.

It gets worse. One NDIS quality inspector ($) It highlighted a significant compliance industry that profits from preparing providers for audit and then auditing them. NDIS providers can shop around for the cheapest, quickest or most convenient inspection…

Corners aren’t just cut; built into the model.

To prevent fraud, Disability and National Disability Insurance Scheme Minister Mark Butler has come out with the big guns. HE announced The government will improve “the quality of plan administrators and support coordinators” and “expand mandatory provider enrollment categories and enroll providers in the digital payment system.”

According to Senator Jenny McAllister, who is also Minister of the National Disability Insurance Program: “If you’re out there trying to steal from people with disabilities, we’re going to find you and we’re going to throw the book at you.”

Let’s hope this “book” the government plans to throw at dishonest NDIS providers includes a fine large enough to deter these criminals from taking our government for a ride.

‘Dark day’: industry braces for impact of NDIS changes