Reports emerge of “well advanced” planning for massive outsourcing of government payments with a view to making it a key feature of Treasurer Scott Morrison’s first Budget in May.

…the $50 billion-plus outsourcing would be the first time the private sector has delivered a national service subsidised by the government.

…would administer claims and payments while overseeing eligibility criteria, meaning they would require access to people’s sensitive private information.

….The Health Department 18 months ago asked for expressions of interest to deliver Medicare, PBS and Veterans Affairs payments. The three programs will dispense a combined $39 billion in 2016-17 — $22 billion in Medicare benefits and $10.5 billion in PBS subsidies.

Total payments for aged care, including home and community care programs, will be $15.8 billion this financial year.

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