Two months after the government abandoned a controversial service cap, senators say they have ‘exposed’ chronic underpayment of healthcare providers under the DVA.
A senate committee has denounced “arbitrary limits, restrictions, thresholds and caps” on care funded through the Department of Veterans’ Affairs, arguing that outdated fee schedules have “posed a longstanding challenge to veterans in accessing healthcare”.
Senators recommended that the DVA annually review health provider fee schedules and develop additional measures to improve access to health treatment in regional, rural, and remote Australia.
The senate standing committee on foreign affairs, defence and trade report, which was released on Wednesday, was a direct response to the government’s decision to walk back a proposed $5000 annual monetary limit on DVA-funded allied health services.
The proposed fee cap, which was announced as part of the 2026-27 federal budget, drew heavy criticism from the veteran community.
Defence force veteran Senator Jacqui Lambie tearfully addressed parliament in the lead up to the cap being abandoned and shared her experience with the DVA while seeking care for service-related pelvic organ prolapse.
Ms Lambie was a participating member of the subsequent senate report.
“The results of this inquiry show a policy failure that cannot be overstated,” the report foreword by senator Dr Jessica Collins read.
“Too many governments have failed to adequately provide the care to veterans that they deserve, and too many governments have not consulted widely or deeply enough on matters of life and death for our veterans.”
The report had eight recommendations, with the first one being that the government consider legislative amendments to “protect veterans from arbitrary monetary and numerical restrictions on health treatment to ensure that care is provided according to clinical need”.
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This would effectively hamstring a future attempt to institute something like the $5000 allied health cap.
“Arbitrary limits, restrictions, thresholds and caps that restrict access to treatment regardless of established clinical need can fragment continuity of care and interrupt treatment plans,” the report read.
“The committee is concerned by evidence received that these disruptions could cause clinical deterioration in veterans, and that costs are simply shifted to downstream healthcare expenditure as a result.
“As such, the committee is of the view that veterans and eligible family members should not be denied, discouraged or delayed from accessing DVA funded health treatment that their health practitioner considers clinically necessary.
“Arbitrary limits should not supersede professional clinical judgement or undermine appropriate care and treatment.”
It also said that clinical need considerations should be applied to existing limits and restrictions, and that these arrangements be reviewed periodically to ensure that they remain clinically justified.
“Further, the committee is of the view that existing treatment should not be interrupted if further approval or review is required, where interruption would risk deterioration, loss of function or otherwise adversely affect the veteran’s health,” the senators wrote.
The report also scrutinised the remuneration rates under the DVA schedule, which it noted have been “historically well-below sustainable levels in allied health for a long time”, resulting in a decline in allied health support for veterans.
It also quoted AMA president Dr Michael Bonning, a GP and veteran, as saying that the effects of the Medicare freeze made it difficult for GPs and other specialists to accept the low DVA rates.
Another recommendation was for the DVA to review health provider fee schedules annually to ensure veterans can access an adequate network of health practitioners.
The report also took the department to task on the length of its compensation claim process.
Wounded Heroes Association Inc president Martin Shaw shared a story about a man who sustained brain damage during his service in Afghanistan and spent six and a half years attempting to get his DVA compensation claim cleared.
“I nearly lost him in 2018, and then finally he resurfaced,” Mr Shaw said.
“He got his claims through. But, prior to that, I got him some housing.
“His wife or girlfriend was pregnant, sleeping on a blow-up mattress. Not on my watch! We just rang Kmart, paid the bill, and got the stuff there.
“I can talk to you now about my veteran centre manager—veteran 35 years—who still hasn’t got his claim through.
“He left in 2022. It’s just distressing, but they’re veterans and they’re built to not complain.”
The report made several recommendations to reduce the administrative burden of the claim process, as well as one to consider establishing maximum timeframes for decisions on claims.
