Medicare to share Centrelink’s new SAP-based payments platform – Strategy – Hardware – Software

Matthew N. Henry

A centralised system made to provide welfare payments to Centrelink shoppers will exchange the country’s thirty-12 months-previous Medicare payments process, ending a long time of uncertainty about the extended-term long run of the mission-critical process.

iTnews can expose the SAP-centered system, which has been created as section of the billion-dollar welfare payments infrastructure transformation (WPIT) software, will in the long run be shared universally throughout Solutions Australia.

Dubbed ‘Payment Utility’, the system is the final result of two a long time of do the job to change how the agency sends and receives extra than $one hundred seventy billion in welfare payments by means of Centrelink just about every 12 months.

It is envisioned to simplify and automate the two inbound and outbound payments and supply the means to provide merged, similar-working day payments by leveraging Australia’s actual-time New Payments Platform.

But the system has been created as a white-label assistance that can also employed throughout Solutions Australia, as effectively as by other governing administration businesses, in line with assistance from the Electronic Transformation Company.

Though the agency was even now considering how the system could be used extra broadly final 12 months, a spokesperson has now confirmed the system, which is now progressing by means of the last levels of tests just before use, will be adopted by Medicare and Kid Help.

It follows Payment Utility’s to start with launch final July to method payments associated to the Tasmanian Freight Equalisation Plan, a software offering economic help to shippers of qualified non-bulk merchandise throughout the Bass Strait.

“The Payment Utility system is in its last levels of tests and preparing prior to wider use,” the spokesperson informed iTnews.

“Over the future several a long time, the system will be extended to go over all Centrelink, Medicare and Kid Help payments as effectively as other payments.

“The system has been created and created as a entire-of-governing administration asset, and will be offered for use by other governing administration departments and businesses.”

A series of long run system releases are then envisioned to adhere to until finally mid-2022.

Solutions Australia has also confirmed that IBM will source the IT infrastructure driving the system until finally the conclude of 2022, owning secured a $fifteen million contract late final 12 months to put in Power9 infrastructure.

“This contract features components, application, and services to style and design, construct, put in and guidance the infrastructure answer, which is an ongoing method,” the spokesperson claimed.

A new property for Medicare payments

Confirmation that Payment Utility will lengthen to Medicare finishes a long time of uncertainty about the long run of the critical legacy payments processing process, also known as the wellbeing and aged care payments process.

It arrives virtually two a long time following the governing administration shelved designs to exchange the ageing mainframe system – which has been employed for extra than thirty a long time to provide Medicare, Pharmaceutical Advantages Plan, veterans and aged care payments – two a long time into the procurement.

As iTnews disclosed in August 2018, the Division of Wellness opted towards proceeding with the procurement of a proposed cloud-centered digital payments system, choosing to make improvements to the present process operate by the then Division of Human Solutions alternatively.

The procurement began following the government was pressured to abandon designs to outsource Medicare payment processing in the wake of the so-named ‘Mediscare’ marketing campaign in the operate-up to the 2016 federal election, and dedicate to retaining the back again-conclude owned and operated by the community sector.

Given that dumping the procurement, the governing administration has ongoing to bleed hard cash seeking to resuscitate the process, which located to be struggling an raising range of outages in 2018 as a final result of its continuing deterioration.

In December, Solutions Australia obtained $37 million to accomplish “essential” servicing on the payments process to make sure that it continues to function in the course of the 2019-20 economic 12 months.

The governing administration has presented somewhere around $210 million towards the Medicare payments units considering that 2017, extra than 50 percent of which was presented in the 2018 federal budget.

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