About opportunities for NDIS pricing reform
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Who is IHACPA?
We are an independent government agency that assists the Australian Government to fund health, health-related and aged care services more efficiently by providing evidence-based price determinations and pricing advice.
See About IHACPA to learn more about our work.
Why were we selected to undertake this work?
In recognition of our expertise in health and aged care pricing, the government has asked us to undertake this initial work. Our involvement also presents opportunities to harmonise some elements of pricing across the care and support sector (NDIS, aged care and veterans’ care). This can bring greater benefits for participants, workers, providers and the broader market.
We are a world leader in health and aged care pricing. Our healthcare classifications are licensed and used by 20 countries, including Ireland, Singapore and New Zealand.
Our experience, independence, transparency, engagement approach and reputation in health and aged care pricing will inform evidence based and respectful advice on a fresh approach to NDIS pricing.
What have we been asked to do?
The Australian Government has asked us to undertake initial work to identify opportunities for future reforms to NDIS pricing. This includes reviewing existing pricing approaches and developing a pricing data strategy.
This is in response to a decision of government informed by recommendations from the NDIS Review and recognises our expertise in health and aged care pricing.
We are best placed to undertake this work as we are an independent agency with expertise in advising on pricing for the health and aged care sectors. We may help improve how prices are set by using evidence and data, strengthening transparency, predictability and potential harmonisation across sectors.
Over the next 12 months we will:
- identify principles to guide a new NDIS pricing framework
- explore pricing model options to improve NDIS pricing
- look for opportunities for pricing harmonisation across the care and support sector.
Please note
Importantly, the government has yet to decide on transferring pricing from the NDIA to IHACPA. Current pricing activities remain with the NDIA and its Board. This includes all work related to the 2024-25 Annual Pricing Review.
Our current work on NDIS pricing is not about whether prices will increase or decrease. It is about us listening and learning about existing pricing approaches to inform our work.
How to get involved
We invite you to engage on a fresh approach to NDIS pricing by registering your interest, including to attend a workshop or webinar.
Once your registration has been processed, we will send you further information on the different ways you can have your say.
We value your lived experience and perspective as a participant, family member or carer, provider, worker, NDIS representative organisation, or someone with an interest in NDIS pricing.
For more information see Have your say.
How will we work with other government agencies?
About the National Disability Insurance Agency (NDIA)
The NDIA operates the NDIS. It provides individualised support for eligible people with permanent and significant disability, their families and carers, encourages greater inclusion and access to mainstream services, community activities and other government initiatives. The NDIA also sets price limits and arrangements for supports delivered to NDIS participants.
More information is available at: ndis.gov.au
About the Department of Social Services (DSS)
The Department of Social Services (DSS) supports the independence of, and economic participation by people with disability and carers by providing targeted supports. The department leads a number of disability and carers programs, and works with the National Disability Insurance Agency (NDIA) and NDIS Quality and Safeguards Commission on reforms to the NDIS.
For more information, visit: Disability and Carers | Department of Social Services, Australian Government (dss.gov.au)
How does this work relate to the NDIS Review?
In 2022, a review of the NDIS was co-chaired by Professor Bruce Bonyhady AM and Ms Lisa Paul AO PSM. The final report, Working together to deliver the NDIS, was provided to government in October 2023. It had 26 recommendations and 139 actions.
The NDIS Review found that the way prices are set, like through price caps, is not working. It does not let providers meet participants' needs well, and it does not promote quality or new ideas and does not assure the sustainability of the scheme.
However, changing current pricing practices alone could make the NDIS more expensive without making things better for participants. This might create financial pressure and make it harder for government to continue to fund the scheme.
For this reason, the NDIS Review found that focusing on market reforms that align incentives for participants, providers and governments, including a new pricing and payments framework, could be a potential solution.
How will IHACPA do this work?
Our approach to NDIS pricing includes:
Engaging widely including NDIS participants, families and carers, providers and other stakeholders, so that we hear your voices and reflect them in our advice on pricing reform.
Reviewing NDIS pricing matters including feedback provided to the NDIS Review and its findings and recommendations.
Exploring existing pricing approaches including how the National Disability Insurance Agency currently undertakes its pricing and costing work, disability pricing options used internationally, as well as health and aged care pricing approaches.
Developing a NDIS pricing data strategy to ensure we understand the data environment as well as the data we need to inform advice on pricing improvements.
Engaging expert advisors to guide our work and test our ideas, ensuring our advice on pricing reform is considered, and reflects a pricing approach that seeks to deliver the right outcomes for stakeholders.
Working closely with disability ministers, DSS, NDIA, the NDIS Quality and Safeguards Commission, Department of Health and Aged Care, and state and territory governments, to ensure our review of pricing is integrated with other NDIS reforms currently happening.
Our expert advisors
We draw on expert advice to inform our NDIS pricing reform work. Learn more about our expert advisors.
We know there are some similar reviews and consultations underway across the disability sector. Our work is focused on NDIS pricing reform opportunities, and not other NDIS reforms.
Find out about other NDIS reforms and information
- To stay up to date and have your say on other NDIS reforms: dss.gov.au
- For questions and feedback about the NDIS 2023-24 Annual Pricing Review: ndis.gov.au