Understanding the Key Changes to the 2022 NDIS Price Guide
Understanding the updated NDIS Pricing Arrangements and Price Limits (formerly known as the NDIS Price Guide) is critical for service providers. It will allow you to remain compliant while also ensuring maximum profitability along with value for clients.
Keep reading as we break down the significant changes made to the NDIS price arrangements and limits, along with what they mean for you.
The Key Pricing Updates
The NDIS price guide ‘22–23 contains several significant updates. Here are the biggest changes:
NDIS Disability Support Worker Cost Model
The most attention-grabbing part of the updated NDIS budget is the NDIS Disability Support Worker Cost Model, which will see a significant increase from the 1st of July. The price limit for supports delivered by disability support workers will rise by 9%.
Just over half (4.6%) of this is to reflect the increase in award minimum wages, in addition to a 1.7% increase to base prices, 2% temporary (one year) loading and 0.5% increase to the superannuation guarantee charge.
Nursing support price limits will rise by 2.94% to keep them in line with the Wage Price Index and Consumer Price Index.
Therapy, Support Management and Plan Coordination
In contrast, therapy, plan coordination and level two and three support management will not see any increase in price limits. This is the second year in a row that the prices have remained the same, although the NDIA have announced that “further work will be conducted to review therapy price limits”.
High Intensity Supports
Along with clarifying the definition of high intensity support, the NDIA have created one single price limit for it. This is based on the previous level 2 prices, i.e. the lowest price limit for high intensity supports. As such, those providing level 3 support in 2021–2022 will face a price limit reduction from July 2022 onwards.
Provider Travel in Remote Areas
Providers of core supports will now have the same pricing arrangements as providers of capacity building supports, as long as the participants are in remote and/or very remote areas. In practice, this means that they can bill for journeys to and from the participant as long as certain criteria are met.
Temporary Transformation Payments (TTP)
TTP loading will fall to 3% from July 2022, in line with the previously scheduled wind-down of the payments.
Clarifying Important Definitions
The 2022 NDIS pricing guide also clarified and amended several terms. These include:
High intensity support
Therapy supports: other therapists
Various types of early intervention supports for early childhood registration group (including the creation of “other professionals”)
Remote locations; while the NDIA will continue to use the Modified Monash Model (MMM) to determine which areas are remote, places that you cannot travel to from a major city without crossing a remote area will now also be considered remote
If any of these are relevant to your provider business, make sure to double-check the new definitions. Remember that if you no longer meet the requirements, you may have to bill different rates. Alternatively, you might discover that the new definitions simplify your billing processes.
Who Will Be Most Affected by the 2022 NDIS Price Guide?
It’s important to note that NDIS participants won’t be negatively affected. Their plans will automatically increase to match the price limits. The only impact they should see will be increased quality as providers are able to run a more financially viable business. This is particularly true for those in remote, rural locations, who should have greater options for support thanks to the provider travel update.
On the other hand, NDIS service providers should see a significant impact. In general, you should find you are billing more — although, of course, some of this will be eaten up by minimum wage increases and inflation.
That said, therapists, support managers, plan coordinators and providers of high intensity supports may find the upcoming year more challenging.
What Does This Mean for NDIS Service Providers?
With the 2022 NDIS Pricing Arrangements and Price Limits announced just days before they come into effect, service providers should move quickly.
Your first priority should be to make sure you’re billing the updated prices. This is particularly important if they have fallen, e.g. you were previously billing for level 3 high intensity support. Billing incorrectly would cause problems for your NDIS payment requests, which could in turn slow down payments and cause cash flow issues.
However, it’s also important to move quickly if the updated prices represent an increase. Delays in switching to the new prices will result in lost income that you won’t be able to recoup later on.
Remember to also double-check the updated definitions and reassign supports as needed. It’s also a good idea to see if any clients are now considered to live in remote areas, as well as if core support workers can now bill for travel time. Don’t forget that you need to meet several criteria before you charge for travel time.
Your clients may also be looking to you for information about whether the updated NDIS prices will affect them. Consider sending out information explaining any relevant changes and reassuring them that they will continue to receive the same services. In the rare case that the price guide update will affect clients’ services, make sure to contact them immediately.
Finally, pay close attention the first time you bill under the new price arrangements and limits. Make sure that all invoices have been updated.
How ShiftCare Integrates the Latest NDIS Prices
The yearly NDIS price updates can make a significant difference to a provider’s finances. Although understanding the full extent of the changes and how they will affect your business can be complex, it’s important to stay up to date with them. It will allow you to bill at a rate that is right for you and your clients, and also ensure that claims aren’t rejected.
If you’re a ShiftCare user, it’s quick and easy to update your price book with the newest NDIS Price Arrangements and Price Limits. You just need to go to “Accounts” and then “Prices” to click on “Update July 2022 NDIS prices”. It’s also easy to review prices and select when you want to start charging them. You can read more about the process in our guide.
With ShiftCare, you can rest assured that the price limits will be correct — meaning you can worry less about billing and instead focus on providing quality support. If you’re not already using ShiftCare, sign up for a free trial.