The National Disability Insurance Scheme (NDIS) has recently released its Annual Pricing Review (APR) Report for 2023-24, alongside updated pricing arrangements and price limits for 2024-25. These updates are crucial for small providers and independent sole traders aiming to navigate the NDIS landscape effectively.
Highlights from the 2023-24 Annual Pricing Review:
- Expansion in the Disability Support Worker Market:
- Participant Growth: There was a 12% increase in participants accessing Disability Support Worker (DSW) supports, which now totals 283,406 participants.
- Provider Increase: The number of active providers grew by 21%, reaching 122,857.
- Financial Impact: Payments for DSW-related supports amounted to $13 billion, constituting 64% of all provider payments.
- Price Limit Adjustments:
- Wage Increases: To align with the Fair Work Commission’s decision to raise minimum wages and superannuation contributions, price limits for supports determined by the DSW Cost Model will increase from 1 July 2024.
- COVID-19 Loading: The temporary 2% loading introduced to manage COVID-19 costs will be discontinued on July 1.
- Support Coordination and Therapy Supports:
- Rising Demand: Payments for support coordination services increased by 18% in the last financial year, but the price limit has not increased.
- Provider Growth: The number of providers delivering therapy supports grew significantly, with a 60% increase in payments to unregistered providers.
- Updated Cancellation Policy:
- DSW Supports: The 7-day short notice cancellation policy will remain for DSW-related supports.
- Non-DSW Supports: A new 2-day short notice cancellation policy will be implemented for non-DSW supports from 1 July 2024, reflecting industry norms.
Key Changes in the 2024-25 Pricing Arrangements:
- Travel Cost Reimbursement:
- Updated Rates: Provider travel reimbursement has increased from $0.97 per km to $0.99 per km.
- Claimable Travel Time: The maximum claimable travel time is set at 30 minutes in Modified Monash Model (MMM) areas 1-3 and 60 minutes in MMM areas 4-5 for each participant visit. You can learn more about the Monash Model here.
- Activity-Based Transport:
- Reimbursement for Non-Labour Costs: Providers can now claim for non-labour costs associated with activity-based transport up to $0.99 per km for standard vehicles and up to $2.76 per km for modified vehicles.
- Telehealth Services:
- Claim Conditions: Telehealth services can be claimed if they are appropriate and agreed upon with the participant. When delivering tele-health services, providers must ensure telehealth services offer the same standard of care as in-person services.
- Provider Travel Costs:
- Claimable Costs: Providers can claim travel costs if they are required to pay the worker for travel time, including time and non-labour expenses such as tolls and parking fees.
- For Example: Providers can claim up to 30 minutes of travel time and $0.99 per km for travel in metropolitan areas.
- Regional and Remote Pricing:
- Higher Price Limits: Price limits in remote areas are 40% higher, and in very remote areas, they are 50% higher compared to metropolitan areas, acknowledging the increased costs of service delivery in these locations.
Practical Recommendations for Small Providers and Sole Traders:
- Stay Informed: Regularly check your Blueset Dashboard and ensure your billing practices align with these updates to avoid discrepancies.
- Optimize Travel Reimbursements: Understand the new travel reimbursement rules and how they apply to your service area. Efficient planning can help manage costs effectively.
- Adapt to Updated Cancellation Policies: Implement the new 2-day cancellation policy for non-DSW supports to better manage schedules and financial planning.
- Incorporate Telehealth Services: If you’re a therapist, consider appropriate, integrated telehealth services into your offerings to provide flexible support while maintaining high standards of care.
- Maintain Accurate Records: As always, ensure all payment claims and service agreements reflect the latest pricing arrangements and cancellation policies to stay compliant and avoid issues.
Staying informed about these changes will help you provide the best possible service to your clients while ensuring fair compensation for your efforts. For more detailed information, refer to the full NDIS Pricing Arrangements and Price Limits document available on the NDIS website.
By keeping up with these updates, you can continue to offer exceptional support to NDIS participants while running a quality business as a sole-trader or small team. If you have any questions or need further clarification, feel free to reach out. Let’s work together to navigate these changes and continue making a positive impact in the NDIS community.
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