Butler open to NDIS changes but convinced it's heading in 'right direction'

Health Minister Mark Butler says he has found the criticism from state and territory disability ministers about the overhaul of the National Disability Insurance Scheme (NDIS) "extraordinary", given the states signed on to a plan to cut spending.

Treasury modelling this week revealed more than 240,000 people will exit the scheme over four years as part of the plan to cut spending by $35 billion over a decade.

Meanwhile, a Senate inquiry set to continue next week heard concerns from across the disability sector after receiving more than 4,000 public submissions in just over a fortnight.

Among them, state and territory disability ministers warned without a "careful, coordinated approach", many people with a disability may be left without services by yet-to-be-built supports to be run by the states.

"There is a significant risk that people with disability will end up in hospitals or other settings that are inappropriate and unable to meet their needs, or have no access to services at all," the submission said.

"States and territories are not in a position, and have made no agreement, to deliver like-for-like services to people who are exited from the NDIS."

Mr Butler hit back at the "posturing", reiterating people would not be left without support.

"I think that submission was an extraordinary submission, given the clear commitments that premiers signed on to a few months ago, in exchange for which the Commonwealth has made available $25 billion in additional funding to hospitals," he told Insiders.

Asked whether this was an attempt to get more funding, Mr Butler said he was unsure.

"I don't know what they're trying to do. You have to ask them that, but this was a package deal, and I think the community now expects all governments to get on with the job of delivering better hospital services and an NDIS that is secured for the long term," he said.

In January, federal and state governments ended a long-running stalemate on hospital funding with the Commonwealth agreeing to spend an extra $25 billion over five years on public hospitals in exchange for the states taking on responsibility for more disability services.

In January, the federal government struck a $219 billion deal over five years with states and territories, after committing an additional $25 billion to public hospitals.

However, states and territory disability ministers argue while they agreed to a reduction in the NDIS, the specific plan was not agreed to during the January national cabinet meeting.

The states have also criticised a proposal to give the NDIS minister new powers that would allow them to cut the scheme further, calling for their "genuine and meaningful consultation" going forward.

Butler leaves door open to NDIS changes

Mr Butler says he is open to constructive changes to the scheme but believes they are currently headed in the right direction.

"I'm not saying that there won't be any change," he said.

"We've heard some ideas from the crossbench in the debate in the House of Representatives. I've certainly very much heard that people want greater reassurance about what won't change because of the reforms that we're putting in place."

Mr Butler said he would not anticipate any changes until receiving the Senate inquiry report, which will be delivered on Tuesday.

"As I've said over the last few days, while the hearings have been underway, but the direction of travel, the need to make big changes that secure this incredibly important social program for the future, I'm convinced is the right direction of travel," he said.