The National Disability Insurance Scheme (NDIS) ensures that Australians with disabilities are supported and included in the community. An integral part of this is its pricing framework, NDIS Pricing Arrangements and Price Limits (PAPL), formerly known as the NDIS Price Guide. This guide provides a standard and certain limits for service providers to adhere to when determining what to charge. It offers clarity to participants about how they can use their funding. Pricing changes typically occur annually, with the most recent changes taking place in July 2023 and more planned for December. Read on to learn about the latest NDIS Price Guide update and apportioned pricing.
What are the NDIS pricing guide changes for 2023/2024?
The updated guide has brought about substantial changes to NDIS pricing. The changes, documented on the NDIS website’s pricing arrangements and pricing updates pages, usher in a renewed focus on fair and equitable service pricing.
Revised wording for the NDIS price guide for 2023-24
On 14 August, the NDIS released an updated PAPL that provided more clarity surrounding group-based supports, namely that providers can transition different groups of participants at different times and support independent living, surrounding the adjustment of remaining funds. The update also introduced the concept of apportioned pricing for group services instead of ratio-based pricing. This change will come into effect in December 2023.
What is apportioned pricing?
The NDIS’ new apportioned pricing model introduces the concept of a predetermined hourly rate, multiplied by support workers’ time, being equitably divided amongst participants for group services. Unlike the previous ratio-based pricing, the fixed rate for each service does not blanket all costs, with additional expenses being billed separately to the participant. This will make participants’ plans more easily customisable.
Benefits of the NDIS pricing guide changes
The NDIS has implemented these changes with the goal of improving the flexibility of support plans and making transactions more transparent. These changes should also make NDIS service providers’ budgeting more efficient, allowing them to track expenses more easily. This may have the effect of optimising their operations and enhancing profitability.
Challenges involved in the NDIS pricing guide changes
Tailoring group services in line with participants’ shared goals may make the calculation of line items more time-consuming, meaning that service providers will need to ensure their administrative processes are able to keep up. Service providers must also diligently document each participant’s progress so that claims are accurate. Finally, they will need to plan recurring schedules strategically.
Can you charge more than the NDIS price guide for 2023-24?
In line with the NDIS pricing guide, if a support item is provided to a group of participants, the price limit for each participant is essentially the listed price limit divided by the number of participants. Each claim must be registered for every participant using the respective support item. Although each claim should account for the total support time, it must adhere to the constraints of the price limit. This applies whether the NDIS provider is registered or unregistered.
How to implement apportioned pricing in your NDIS business
Transitioning to the apportioned pricing model allows your NDIS provider business to refine its practices. Implementing streamlined administrative procedures, including automated recurring tasks and in-depth progress notes, will assist in making the transition easier. Comprehensive and user-friendly NDIS software that’s equipped to handle the new apportioned pricing model will be an integral component of this process.
The importance of NDIS case management software
NDIS software will assist your business in employing the apportioned pricing model by mitigating the administrative burden involved, ensuring precise documentation and improving the efficiency of your case management. The right NDIS software solution for your business will help you automate rostering, keep detailed progress notes, share data with the relevant parties, and ensure compliance with the new NDIS pricing regulations.
Apportioned pricing updates for MYP software users
In light of the upcoming deadline for changes to the Group-Based Supports Pricing Model (Apportioned Pricing), the following updates were released to all MYP subscribers on October 18, 2023. These updates have been developed by MYP to facilitate a seamless transition for all users affected by this change. Please be reminded that the deadline for transition to the new Apportioned Pricing model is December 31, 2023.
Activation of the Ratio Feature: the ‘Ratio’ box within a Participant’s Schedule of Support has now been activated for all users – resulting in the ‘$ Rate’ field adjusting depending on the ratio selected. E.g. If selecting a 1:2 ratio, the full rate of the line item will be halved. This update means that users are no longer required to edit the product within a Price Book to ‘Fraction Price’ to achieve this same result. In addition to this, the selected ratio of service will be added to the ‘Description’ field within a Schedule of Support for easy identification at the Roster level.
Simplifying NF2F: an additional field has been added to the ‘Edit Client Line Items’ window within a shift, allowing the user to specify the amount of time that an NF2F support has been provided to the client. Approval of the associated timesheet will ensure that the resulting invoice in GENIUS includes an additional entry for the relevant NF2F claim type (in addition to the entry for the relevant Direct Service claim type, as standard).
Please refer to the relevant myHelp article – “Group-Based Supports: Apportioned Pricing & Transitional Pricing” (available here – https://help.mypcorp.com/art/apportioned-pricing-transitional-pricing/) for additional information as required, or reach out to our Support Team for assistance or to request Tailored Training.
Next steps towards compliance with the NDIS pricing guide
With strategic planning, informed decision-making and the incorporation of technology to aid in the transition, NDIS providers can move to the apportioned pricing model and implement the other NDIS pricing guide changes seamlessly. Although the changes will not come into effect for another couple of months, it is important for your NDIS business to prepare accordingly so that you are ready to start using the apportioned pricing model in December.