Guaranteeing Medicare – modernising the health and aged care payments systems

This measure continues the Australian Government’s initiative to replace outdated IT systems supporting health, aged care and related veterans’ payments with a new digital payments platform, while ensuring the existing systems continue to operate reliably and effectively. This digital payments platform will be permanently Government-owned,

Page last updated: 09 May 2017

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Government-run, delivering Medicare, Pharmaceutical Benefits Scheme, aged care and related veterans’ payments into the future.

Why is this important?

The current health, aged care and related veterans’ payments systems support more than 600 million payments, worth around $50 billion, to individuals and providers each year. The current systems are old, complex and at risk of failure and therefore need to be upgraded. This measure will support the procurement and design work necessary to replace the current systems. It will fund a mix of commercial and government expertise, as well as collaboration between government agencies, to develop the operating model and future-state service design to support a Second Pass Business Case and manage stakeholder engagement and communication activities.

The existing systems need to continue to operate reliably and effectively until the new system is fully implemented, including through the transition period. Funding has been provided for the first stage of remediation.

Who will benefit?

A new digital payments platform, once implemented, will generate significant benefits for healthcare providers, the public and the Government.

The new system will be fit for purpose, more responsive and able to handle changes in the way claims and payments are processed. It will support the level of flexibility and service innovation that users and the Government expect. This measure will also ensure the existing systems continue to operate reliably and effectively while a new digital payments platform is being designed and delivered.

How much will this cost?

This measure will cost $67.3 million in 2017–18.

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