Outrageous decision by NDIA pits participants against providers

David Moody, Acting CEO of NDS, has been informed by the NDIA that it is reneging on earlier advice about NDIS participant funding, a decision which will pit people with disability against their service providers.

In June, the NDIS announced prices for this financial year. This included the introduction of a 7.5% loading as a Temporary Transformation Payment (TTP) to assist providers transform their businesses to operate in a competitive market.

“We were pleased with the introduction of the TTP. It acknowledged the inadequate prices that had been in place since the NDIS began in 2013 and would help providers to restructure to become viable,” said Mr Moody.

At the time of the release the NDIA stated, “providers are encouraged to adopt the higher valued TTP and conditions for claiming. Before claiming the TTP price limit, providers and participants must discuss and agree to any proposed changes.”

Plans in existence at 1 July were indexed for TTP-included prices.

However, new plans approved by the NDIA since that date have not included the funding that would allow providers to charge the higher prices. The NDIA told NDS in mid-August that this omission would be remedied. The NDIA has now reneged on that decision.

“This decision is outrageous.

“It pits participants against their providers, because in order for providers to charge at the TTP-included rates, an NDIS participant has to agree to a reduction in their hours of service.

“Funding in a participant’s plan is based on what is deemed ‘reasonable and necessary’ support. The NDIA is now indicating that a participant should give up some hours of that reasonable and necessary support so providers can claim at the TTP inclusive rates required to ensure their services remain viable (which the NDIA is encouraging providers to do).

“The NDIA must overturn this decision.

“Should it fail to do so, the NDIA will be guilty of creating confusion and conflict between people with disability who simply want access to quality disability services, and the providers responsible for providing them.

“NDIS participants should not be placed in the unfair position of having to negotiate fewer hours of service in their plans in order to use the services of a provider doing as the NDIA urges by charging at TTP-included prices.”

The Australian Federation of Disability Organisations (AFDO) and NDS are united in our call to rectify this injustice, which will deprive some participants (and their families and carers) of critical supports.

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