2017 Price Review
The National Disability Insurance Agency (NDIA) completed its 2017 review of price controls for services and supports, which ensures these arrangements are are appropriate and continue to deliver value to participants as we tranistion to full Scheme.
Consistent with previous reviews, stakeholders were given the opportunity to express their views on NDIS price controls and associated market controls. We released a Discussion Paper seeking feedback from the sector on proposed changes to existing arrangements during the review.
The review focused primarily on personal care and community supports.
Outcomes of the review and updated arrangements were published in June 2017.
The 2017/18 Price Guide incorporated a series of changes and additions designed to ensure stability for the NDIS through transition. The 2017/18 Price Guide includes several updates and additions to NDIS market controls:
- Incorporating a 4.5% increase in prices applied for Personal Care and Community Participation in all jurisdictions. This means the base rate for these supports, delivered between Monday to Friday, increased from $42.79 to $44.72 in the Eastern States, with higher rates available for supports delivered out of hours and on the weekends, and higher rates also applicable for participants requiring high intensity supports.
- A 1.94% increase in price levels for all other supports that were subject to growth in wage costs, to be applied nationally, except for Therapy supports, which remain unchanged.
- Increased price loadings to apply for the delivery of supports to participants in remote and very remote parts of Australia (20% in remote areas and 25% in very remote areas), and;
- The extension of the cancellation policy to allow providers to charge up to 2 participant cancellations for therapeutic supports per annum.
Improvements were also made to the structure of the Price Guide, to provide more clarity for participants and providers on the disability supports that the NDIA funds in plans, how they are funded, and to continue to promote the proactive service design and flexible use of these funds by participants.
This approach to price controls and associated arrangements is designed to help providers transition to the market environment of the NDIS, maximising choice for participants and providing incentives for providers to develop new, innovative services and products.
Steps taken to complete the price review
The review included the following steps:
- Review of evidence and methodology
The first step 2017's price review was to baseline the methodology used to calculate the hourly costs of personal care and community supports, and to gather up-to-date evidence that could be used to update these calculations.
- Discussion Paper
The NDIA produced a discussion paper inviting feedback from the sector on existing price controls and potential changes being considered. These responses were used, to develop a shortlist of issues for further detailed impact assessment.
- Impact assessment
The NDIA undertook impact assessments to assess the proposed changes for 2017/18. HoustonKemp were engaged to design an impact assessment framework that is fit for purpose, and to assist with impact assessment for the review.
- Publication of 2017/18 Price Guide
The resulting amended Price Guide for 2017/18 was published in June, with prices effective 1 July 2017.
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