Why providers must change pricing before 2024

Key points:

• Providers must transition to the new pricing arrangement by December 31, 2023

• In total, over 700 providers attended the eight information sessions that were developed to answer frequently asked questions, in response to public feedback

• Providers should consider the presentations alongside the NDIS Pricing Arrangements and Price Limits 2023 – ‘24 and provider guidance documents

The final deadline to implement new pricing for group-based supports is quickly approaching as the world enters into the final months of 2023. All providers must transition to the new pricing model by December 31, following years of opting to retain the old model.

Since the new pricing was first introduced for group-based supports in 2020, providers have been able to use the new pricing model or retain the use of the former pricing, which is known as ‘transitional pricing.’ 

Transitional pricing can not be used for supports that have been delivered from January 1, 2024

Following feedback from providers, a National Disability Insurance Scheme presentation series was designed to help providers in their transition to the new pricing model for group and centre-based activities.

The presentations were intended to complement the key reference document — the Pricing Arrangements and Price Limits document, which came into effect on July 1, 2023.

The National Disability Insurance Agency had not strictly enforced the new pricing, given the challenges of the COVID-19 pandemic and had allowed numerous extensions for providers, with the final deadline pushed back until the very end of 2023.

In addition to the presentation series, the NDIA dedicated a team solely to deal with the transition and field enquiries from providers that can be reached by email.

Any supports provided until December 31 may be claimed using the transitional pricing, but this must be done by March 31, 2024 — meaning that providers have three months to finalise any claims under the former pricing model. From April 1, 2024, the transitional pricing support items will be removed from the system. 

Importantly, providers may choose to transition groups to the new pricing in stages, so long as they don’t revert to the transitional pricing for that particular group.

Julia, a member of the Social and Community Participation Team at the NDIA, explained that Programs of Support, which were introduced in July of 2020, can currently include the former transitional pricing or the new line items. However, from the start of 2024, they must only include the new line items.

“Now, Programs of Support are not mandatory. They won’t suit all activities and all participants and suit all providers. They’re just simply an option that can be used if it’s appropriate,” Julia said.

“Now, as part of the changes to the [Pricing Arrangements and Price Limits document] on May 5, 2023, the maximum length of a Program of Support has been increased from 12 weeks to six months.

“This came about because we heard that, in some instances, the 12-week maximum wasn’t working well for, perhaps, longer goals or activities and skills, which take longer to build.

“Last of all, there has been an introduction to a four-week unplanned exit clause,” she added.

Providers can find out more about the upcoming changes and necessary channels of support with the transition by visiting the NDIS Pricing Arrangements resource page.

Have you made the switch? Let the team behind Talking Disability know how you are handling the looming deadline!