Half a million claims still waiting as Centrelink and Medicare cut down backlogs

Centrelink and Medicare, two of Australia's most crucial public service entities, have been under significant pressure to manage an overwhelming backlog of claims affecting countless Australians.

However, the situation improved when Services Australia halved its Centrelink and Medicare backlog in just three months.

Despite this progress, more than half a million claims remain in the queue, leaving many Australians in a state of uncertainty.



Government Services Minister Bill Shorten has attributed this improvement to the hiring of thousands of new staff members, who have been instrumental in clearing 700,000 overdue claims—and 823,000 claims in total—over the past 13 weeks.

This surge in workforce has been a strategic move by Services Australia to expedite the processing of critical Centrelink and Medicare claims, which include disability support and age pensions, parent payments, JobSeeker, and carers allowance.


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Despite backlogs have lessened, half a million claims still remain. Credit: Shutterstock


‘Services Australia has focussed on getting claim levels back to normal levels as quickly as possible after recruiting and training these 3,000 staff to process critical Centrelink and Medicare claims,’ Shorten said.

'A few weeks ago, I announced the agency had slashed 500,000 claims in 10 weeks, and since then, we've cut a further 200,000.’

‘The backlog is now around 660,000, and the agency remains on track to reach normal claim levels by mid-year.'



But what exactly are 'normal levels' for such claims?

Services Australia Chief Executive David Hazlehurst expressed his desire to see claims between 400,000 and 500,000 earlier in the year.

‘My expectation, at this stage, is that by April, we expect to see some impact,’ he said in February.

‘By the middle of the year, particularly in relation to new claims on hand, we expect to see things more towards what we would expect to be a reasonable standard.’


'Somewhere between 400,000 and 500,000 claims on hand—if we can get it below that, that would be terrific,' he remarked, setting a benchmark for the agency's performance.



The new staff members have not only been processing claims but also addressing the high volume of phone calls from Australians seeking assistance.

They have answered more than 1.1 million phone calls, a significant effort considering that almost 7.5 million calls to Services Australia went unanswered in 2023, with a further two million calls ended by the caller.

Deputy Chief Executive Jarrod Howard acknowledged the frustration customers experienced and apologised for the difficulties in contacting the agency.

‘There is not a person in the agency that does not want to serve customers. We are doing everything we can in order to maximise the service that we provide the customers,’ he said.
Key Takeaways
  • Services Australia has significantly reduced its Centrelink and Medicare backlog, yet over half a million claims are waiting to be processed.
  • Government Services Minister Bill Shorten attributes the progress to hiring thousands of new staff members.
  • The agency has a target of reaching normal claim levels, which are estimated to be between 400,000 to 500,000, by mid-year.
  • Despite the reduction in backlog, some customers still face difficulties getting through to Services Australia, with a high number of unanswered calls earlier in the year.
Have you noticed an improvement in the processing times of your claims? What has been your experience with customer service during this period? Share them with us in the comments below.
 
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Name John. I have been waiting since early February. I was promised early May at the latest.
 
I waited 14 months for DSP claim but once I saw their doctor it was approved 5 days later.

Medicare I usually get the next day but they are very slow with something else I can't discuss
 
We lodged an age pension claim on 16th January this year and were advised it would be processed between 9th & 16th April...so far not a word, not even a courtesy message or letter. No mesages on the App, only that our claim is in processing mode. What can one do though? Just trying to exercise patience
 
To clear the backlog they would have changed the processing parameters. They just allow certain applications to go through without investigating them as thoroughly.
For example my low income health care card renewal usually takes weeks to go through (six months for the first one) and this year in April it was approved in days, literally had my new card on my phone 4 days after applying.

Obviously they have just accepted what's quoted and it goes straight through.

We did similar decades ago when processing personal loans in a bank, if they wanted more business they changed the parameters, like income levels compared to expense levels, how many changes of addresses and jobs, etc, this allows more or less applications to pass and be approved.
 
I am waiting for a claim since mid January. I was told the process will take around 2 months and now, has passed already more than 4 months and nothing yet.
 
I had the same problem just recently.
Couldn't understand why my claim wasn't being paid, so decided to attend a centrelink office to find out why. They couldn't tell me, so they had someone from services Victoria contact me. Turns out that I hadn't sent through my retirement statement to them.
Once I had done this my claim came through 👌
 
We lodged an age pension claim on 16th January this year and were advised it would be processed between 9th & 16th April...so far not a word, not even a courtesy message or letter. No mesages on the App, only that our claim is in processing mode. What can one do though? Just trying to exercise patience
We also lodged a claim through our financial advisor at the end of 2023, and were given April dates, then May, now June dates????!! We had been on a small pension, but extra work income and a small inheritance, we lost it. They have notified us of receiving the correct information, and are processing the claim and therefore will notify us of completion, so we don't need enquire!!
 
I'm on a group on FB for pensioners and a bunch of people contact Bill Shorten's office about their late claims and he must contact Centrelink cos most of them start getting their pensions within a week or two. Go to his website and navigate to where you can fill out a form and it's sent to him.
 
I lost my job in March and applied for Jobseeker in April. It was rejected as I did have a small redundancy package. I applied again a few weeks later and was approved for Jobseeker but I still have wait until August for my first payment.
I will have had no income of anykind by then for 4 months.
I'm too young for a pension and to old to get a job. *Sigh* and enough money to see me to the pension just a few years away.
 
I lost my job in March and applied for Jobseeker in April. It was rejected as I did have a small redundancy package. I applied again a few weeks later and was approved for Jobseeker but I still have wait until August for my first payment.
I will have had no income of anykind by then for 4 months.
I'm too young for a pension and to old to get a job. *Sigh* and enough money to see me to the pension just a few years away.
I still work part time and I am 65. One of my friends is 80 and still works as an ironing lady, does a great job. Never too old to work!
 
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I still work part time and I am 65. One of my friends is 80 and still works as an ironing lady, does a great job. Never too old to work!
Just to clarify, I am VERY actively looking for work. I know I'm not too old and my resume is impressive. I just see this 60 year old competing for work with 20 year olds. Employers have told me age is a big factor.
 
Just to clarify, I am VERY actively looking for work. I know I'm not too old and my resume is impressive. I just see this 60 year old competing for work with 20 year olds. Employers have told me age is a big factor.
That would be very unfair, as mature have a lot to offer. I hear employers say this a lot. Reliably for starters is something mature words are good at maintaining. Good luck and I hope you do find something you enjoy doing! 😊
 
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