NDIS to allow more funds to help those with complex needs

A federal government shake-up will ensure more money is provided under the NDIS for those with complex needs.

Social Services Minister Paul Fletcher

National Disability Insurance Scheme providers working with Australians with the most complex disability needs will receive more money under a $140 million shake-up of pricing arrangements.

Social Services Minister Paul Fletcher will announce a third tier of care for people with “very complex needs” delivering their providers with a new loading of 10.3 per cent.

The announcement, being made today at a meeting of federal, state and territory disability ministers in Sydney, represents a significant change to the pricing arrangements for the NDIS.

It is expected 10 per cent of the more than 200,000 disabled Australians who use the NDIS will benefit from the changed arrangements and it recommits the $22 billion scheme to its original intention to service those people with the most complex medical needs.

The government’s changes to the pay scale come after months of tension between providers and the government over how much they are being paid.

“The pricing changes will convert a two-tiered pricing system for self-care, social and recreational support to three tiers from February 1 next year,” Mr Fletcher told The Australian.

An independent review of the NDIS pricing arrangements by management consultants McKinsey & Company said in February that a third tier would cost the scheme up to $140m.

Mr Fletcher said the extra money was already fully budgeted, and that none of the more than $8bn in funds allocated for the NDIS would be reallocated to make up for the pricing arrangement changes.

Mr Fletcher will meet the Disability Reform Council in Sydney, made up of himself and his state counterparts, to discuss the pricing arrangements, and other issues such as specialised disability accommodation.

One issue that has not been fully addressed yet is therapy costs.

The Australian has reported that therapists have been fleeing the NDIS out of concern about proposed price caps.

Mr Fletcher told The Australian yesterday that pricing arrangements and therapy costs were separate issues, and they were being worked through.

Assistant Minister for Social Services, Sarah Henderson, said a plan for therapy costs would be unveiled “in the coming months”.