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NDIS Price Guide Changes coming July 2020

Information for Providers

The NDIS has just released their latest price guide for the 2020-21 financial year, including new price limits for supports which will come into effect on 1 July 2020. The new price guide includes several changes that might be relevant to your business with potential impacts on claimable items and invoicing. To help you keep informed of what’s happening, we’ve compiled a simple table of some of the biggest changes with links for you to find out more information as needed.

Price changes vary across activities but are generally around 2.5% which takes into account the 1.75% increase to the national minimum wage and CPI. There are some exceptions to this like therapeutic supports that are not being indexed for the 2020-21 financial year.

As in previous years, the NDIS will be automatically indexing all existing NDIS Plan budgets to allow for any changes to the price limits. To accommodate this, all service bookings need to be manually changed. But don’t worry, for our shared participants, we will update the service bookings for you and work with you to resolve any issues if they arise.

This means you can charge the new prices as agreed by our shared participants knowing the money will be there irrespective of any price changes that may occur.

If you do renegotiate new service agreements as a result of the price changes, you only need to contact us if the new agreement results in an increase in the funds that need to be reserved.

MyIntegra works with Providers and Participants across Australia and we’re here to help you. Our friendly team are experts in Plan Management and understanding NDIS supports and pricing.

We have a quick and easy sign up process for participants which can be completed online at myintegra.com.au/signmeup or by calling 1800 696 347.

 NDIS Price Guide Changes effective 1 July 2020

Key Area1 Changes Impact
Plan Indexation
 
Participant plans will be automatically indexed by the NDIA. Note: The NDIS has advised this will require an update to their systems and is likely to occur on Saturday, 11th July. As required, Service Bookings and any associated budgets will need to be manually updated to reflect the new support item prices.
For our shared participants, you only need to contact us with a new schedule of support if the renegotiated budget is higher than what was forecast.  (Note: there’s no need to send us through new service agreements as a result of any price changes). 
Temporary Transformation Payment (TTP)
p28
As previously announced, the TTP will reduce from 7.5% to 6% on 1 July 2020. Eligible providers wishing to claim TTP in 2020/21 will need to ‘opt in’ via return email to the NDIA by 1 July 2020. Note: The TTP is designed to help registered providers cover the costs of transitioning to the NDIS. For information on the criteria please see here: NDIS TTP Updates and Criteria If you believe you are eligible and wish to claim TTP in the 2020/21 financial year but did not receive an email from the NDIA, please contact them immediately to advise of your intent to claim. 
 
Establishment Fees
p25
The new Price Guide expands eligibility for providers to claim an establishment fee and has greatly simplified the requirements including the introduction of a single rate. This means providers will be better able to cover the costs of establishing new NDIS customers and simplify calculations.
Cancellation rules
p20
The changes made in response to COVID-19 allowing providers to claim 100% (rather than 90%) of agreed price for short notice cancellations will continue. This will reduce administration and allow providers to cover the costs associated with short notice cancellations or ‘no shows’.
Modified Monash Model (MMM) classifications
 
The NDIA will be moving to the 2019 MMM from 1 October 2020 for determining remote and very remote prices. For details on exactly what towns are affected please refer to NDIS MMM Rating Changes from 1 October 2020. Note: there are also some specific areas that the NDIA reclassify into a higher remote rating than determined by the MMM model, these can be found in the NDIS Price Guide, p12. Though there are only a few changes to MMM ratings of various towns across Australia, the price limits for participants in these locations will be greatly affected — either positively or negatively.
Providers need to actively look up the MMM rating of each participant themselves (especially for those suburbs reclassified into higher bands by the NDIA). Not doing so risks significant loss to revenue. 
Find MMM Classifications.
Provider Travel
p16
Providers will be able to claim non-labour costs associated with provider travel including up to $0.85/km, road tolls and parking. (This aligns with current arrangements for Participant Transport). To do this, the NDIA has introduced new line items in Core Supports and Capacity Building specially for claiming these non-labour travel costs. For more details and some helpful examples please refer to the NDIS Price Guide, p16. Note: There is no change to the claimable maximum time limits. This will provide significant relief to providers.
There will be some increase to administrative burden through updating service agreements and invoicing requirements but these should be more than offset by the ability to finally claim non-labour travel costs.
Definitions for high intensity support and time of service delivery
p28 & 14
The definitions now clearly link the different price limits to the support worker’s skills and experience and link in with the Award. Providers will be able to claim based on when the support is provided to the participant, and not necessarily the shift of the worker used to deliver that support. This makes it easier for providers and participants to identify which level of support is being provided and reduces confusion about which price limit applies.
Group-based supports
p23
Instead of claiming at a range of different ratio rates and support items, providers will be able to determine their own rates dependent on the number of participants and staff e.g. 3 participants to one staff member would just be 1/3rd of the 1:1 rate. In addition, there will no longer be an allowance for non-face-to-face supports built into the price. Providers will now claim a capital allowance for each participant where appropriate.  This may reduce some administration due to its simpler price structure however, this may be negated by providers needing to make additional claims for non-face-to-face support items.
 
Programs of Support
p23
The NDIS is introducing Programs of Support where providers will be able to enter into agreements for providing programs of support, specifically group supports. There are some requirements and limitations placed on this support. Please refer to p23 of the Price Guide for more detailed information. This will give providers the ability to better plan service delivery, particularly for group supports and potentially reduce administrative burden.
Transitional arrangements for group-based supports
p62
Providers now have until 30 June 2021 tocomply with the new group-based pricing (as above). This means providers can either continue using the transitional pricing or move to the new arrangements anytime during this period. Note: transitional price limits include non-face-to-face support provision and centre capital costs so providers using these arrangements cannot claim additionally for these costs under the new support items.   This is will give providers more flexibility and allow time to prepare for transition to the new arrangements in a way that is more suitable to their business and systems.
 
Note: providers must use the same pricing arrangements for all the group and centre based supports they deliver.
New Support Items
Psychosocial recovery coaches
p78
Six new support items introduced to support participants with psychosocial disability achieve their outcomes.
For more information please see the NDIA’s factsheet on their website – mental health and the NDIS.
Individualised Living Options
p46
Two new support line items being added to allow access to alternative living arrangements within the Assistance with Daily Living Support Category.
The NDIA will provide more detailed information in July.
Supports in Employment
p60
Five new line items will be added so providers can claim service delivery for different times of day and days of week.
Two new line items introduced to allow providers to claim provider travel and transport one or more participants to services as required.
For more information on these and other changes please refer to the NDIS’ Supports in Employment page.
Supported Independent Living (SIL) Set price limits for SIL supports will replace the current quoting and negotiation process.
Existing SIL quotes will continue until the end of the agreement, at which point the new SIL price limit will apply.
For more detailed information please refer to the NDIS SIL website.

[1] Source: NDIS Price Guide 2020-21 PDF

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