Pricing Joint Working Group Final Report

The NDIA sets the value for funded supports in participant packages. At present it also limits the price a provider may charge to that value. The NDIA will continue striving to increase flexibility for participants by encouraging vibrant and responsive markets for disability supports. The more the market for disability supports matures, the more choice participants will have over how they spend their individualised budget, consistent with the vision of the Productivity Commission.

The NDIA has set these support item prices believing they are similar to prices of equivalent supports in comparable schemes existing in trial site markets. This ensures that the NDIA does not compete with other purchasers, avoiding inadvertent market disruption. However, concerns have been raised by the NDS over hourly rates for two of the highest-volume supports – assistance with self-care activities and assistance to access the community. NDS is concerned that pricing support below the real cost of delivery will reduce choice of the available providers for participants and lower service quality.

The NDIA and NDS agreed to a six-week joint project to examine these concerns and recommend solutions, forming the Pricing Joint Working Group.

Pricing Joint Working Group Final Report

The Pricing Joint Working Group, which comprised equal representation from the National Disability Insurance Agency (NDIA) and the National Disability Services (NDS) along with two independent expert consultants, was established to address pricing issues.

This report presents a method to construct price and recommends transitional prices. It presents the concept of an efficient price and proposes sector development strategies to help drive efficiency.

NDIA Report on the Methodology of the Efficient Price

This report describes the NDIA methodology of the efficient price to assist providers to understand the key components of costs in order to remain competitive in a growing market.