Tech glitch puts NDIS clients in cash limbo

People on the $22 billion Nat­ional Disability Insurance Scheme are having their support packages reviewed early and cut off.

Stephanie Gunn of the NDIA told the hearing organisations would be reimbursed if they continue to provide services while no plan was in place. Picture: Alan Barber

People using the $22 billion Nat­ional Disability Insurance Scheme are having their support packages reviewed early and cut off, leaving them unable to access the remaining funds that can total thousands of dollars.

The glitch in the system happens when plans, which typically are valid for a year, are reviewed early to avoid a gap between one plan ending and a new one beginning. However, when a review results in a person’s support being downgraded they lose access both to the remaining money in their existing plan and receive less funding in the future.

The computer system used by the National Disability Insurance Agency, which runs the scheme, is borrowed from the Department of Human Services and is so ill-equipped for the task that a support plan cannot simply be updated or changed without triggering an entirely new package.

The Australian has learnt of at least three cases where participants have had their support reduced early, voiding money in their current plans and leaving them unable to pay for service bookings.

In one case, a disabled person has effectively lost $1500 on top of the funding reductions in their new plan. During Senate estimates in March last year, the agency revealed about 2000 participant plans had expired before a new plan had been put in place, leaving a gap in support.

The NDIA’s Stephanie Gunn, who was acting in a role overseeing planning, told the hearing that organisations would be reimbursed if they continued to provide services while no plan was in place.

“When the plan is renewed they will be able to claim for all of those services. That is clearly not ideal for the providers,” she said.

“Out of all of the plan reviews that we did complete on time, there were just 2000 that did not meet that deadline.”

The new focus on completing plans early was meant to avoid holes in support but the pendulum has now swung the other way.

The NDIA did not respond to a request for comment by ­deadline.