NDIS rorts are rife. Will Butler’s reforms fix it?
· Michael West
The NDIS reforms announced by Health Minister Mark Butler promise to address the scheme’s excesses, but will it fix a broken system, Sarah Russell asks?
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History shows us that rorting is rife when governments fund the private sector to deliver a public good.
Outsourcing public services to the private sector is central to neoliberal economics. The idea is that the private sector operates more efficiently and cheaply than governments. However, rather than operate within a genuine free market, NDIS (and aged care) providers have developed business models based on government subsidies, rather than recipients’ needs.
Profits over People: in-home care a cash bonanza for greedy aged providers
Dishonest providers are often able to outsmart apathetic government bureaucrats. So it is not surprising that the Australian National Audit Office identified a range of fraud and non-compliance activities in NDIS including:
- providers making claims for ‘ghost’ participants or from expired plans;
- claiming from plans of participants who are incarcerated, in hospital or overseas for long periods (and thus ineligible for NDIS supports);
- claiming for services that were not provided;
- overcharging or duplicate charging;
- double-dipping across government programs.
In addition, the Australian Criminal Intelligence Commission (ACIC) recently told a review into NDIS integrity that organised crime gangs are using the national disability insurance scheme to launder money, earn income and hide assets.
It gets worse. An NDIS quality auditor ($) has blown the whistle on a substantial compliance industry that profits from preparing providers for audit and then auditing them. NDIS providers can shop for the cheapest, fastest, or most accommodating audit …
Corners are not just cut; they are built into the model.
To prevent fraud, the Minister for Disability and the National Disability Insurance Scheme, Mark Butler, has come out with the big guns. He announced the government will improve “the quality of plan managers and support coordinators” and “expand categories of mandatory provider registration and enrolling providers in a digital payments system.”
According to Senator Jenny McAllister, also the Minister for the National Disability Insurance Scheme: “If you are out there trying to steal from people with a disability, we will find you, and we will throw the book at you.”
Let’s hope this “book” the government plans to throw at dishonest NDIS providers involves a fine large enough to discourage those criminals from taking our government for a ride.