Key changes following the release of the NDIS 2023-24 Annual Price Review Report
What is the Annual Pricing Review?
Every year the National Disability Insurance Agency (NDIA) gathers information to review the pricing arrangements and price limits that registered National Disability Insurance (NDIS) providers use. These changes apply to all supports by Agency-managed and plan-managed participants. They do not apply to self-managed participants.
The NDIA have now released the 2023-2024 Annual Pricing Review Report and the updated Price Arrangements and Price Limits 2024-25 (PAPL). We wanted to update you on the key changes this year and what this might mean for you and your plan.
What are the changes?
The key changes effective 1 July 2024 are:
- In June, the Government announced a 3.75% increase to minimum wage which affects all awards including the Social, Community, Home Care and Disability Services Award (SCHADS) which affects Disability Support Workers (DSW). The NDIA uses the DSW cost model to calculate price limits for supports. The NDIA has respected the increase however has removed the temporary 1% loading meaning price caps based on the model will only increase by 3.19%.
- Adjusting price limits for certain supports to reflect recent wage increase, including Level 1 support coordination services.
- Increasing price limits for psychologists, nurses, and other supports based on wage and cost of living changes
- Maintaining existing pricing for most therapies and higher-level (Level 2 and 3) support coordination
- Removing 7-day cancellation notice requirements and adjusting short-notice cancellation period for non-disability support work-related supports to 2 business days
The review also flagged the following changes will also occur in the next few months, to “deliver a new approach to pricing in 2025”. The NDIA say these changes will strengthen NDIS provider market by reflecting the “evolving environment”, increase transparency and sustainability:
- Independent Expert Review: An independent expert will be appointed to review the NDIS pricing structure ahead of next year’s Annual Pricing Review
- Quality Supports Program: The NDIA will introduce the ‘Quality Supports’ program to commission high-quality services directly, addressing gaps in service quality for participants.
What could this mean for you and your plan
Adjusting the short notice cancellation period should alleviate some of the costs associated with cancelling appointments. Most providers have wait lists, meaning cancelled appointments can be filled and this will mean a reduction in double payments and using up participants’ budgets if they are unable to cancel 7 days ahead of time.
The minimal increase in price cap appears to be a boost on the surface, however, there hasn’t been an increase to allow for important quality improvement and staff training, meaning providers will have to bear the increased staff costs under the Award. Added pricing pressure on providers during a cost-of-living crisis may mean quality providers will make price cuts in areas that will affect quality care or be unable to sustain their business and close – which in smaller markets, like regional areas, could mean less options for participants.
Not increasing the pricing for higher-level support coordination and other allied health therapies (except psychology), which have remained unchanged for half a decade, could lead to allied health and quality support coordinators exiting the NDIS market.
There are concerns that the mandated 3.19% wage and superannuation increase is not enough to support quality and trusted providers, especially higher-level support coordinators and non-psychology allied health providers. This could mean less choice for people with disability if providers stop providing NDIS services.
What do you think about the pricing changes? Let us know by commenting below.