Disclosure Log

Document 10 - For Official Use Only

Pricing Reference Group | Item: [Item Number]

National Disability Insurance Agency

Pricing Reference Group, Date: July 30th, 2019,

Matter for Discussion:

Work Plan for Annual Monitoring and Review of Price Controls Prepared By David Cullen Chief Economist.

Purpose To seek agreement on when prices are changed & discuss work agenda/structure of price controls team (PCT).

Recommendations That PRG discusses ways how price control is reviewed as follows: a) The Price Guide will be updated at most four times per year ideally twice annually; updates occur quarterly beginning each quarter.b) There can be up-to two major releases in a year with one update planned around mid-July followed immediately after research consultation from issues deferred during previous annual review. Should needs arise another release could happen February onwards April September minor clarifications amendments bedding down preceding major updates.c) Updated documents should become available six weeks prior to effect except where dependent upon external bodies such Fair Commission policy changes codes released six weeks ahead while applicable price controls released soonest possible post decisions by relevant authorities.d) Prior presenting recommendations there must provider consultations not just peak body discussions but cognitive testing draft recommendation representative sample individual providers.e) New support items proposals require lead time barring necessities six months.f) Discusses deferring APR recommendations establishing working group investigating therapy travel.g) Discussed WA Market Review that were not implemented within 2018-19 APR.h) Other proposed PCT research for FY’19-’20 planning now underway.i) Notes revisions made to the structure.

Disclosure Log

Pricing Reference Group - Item 2.3 (FOR OFFICIAL USE ONLY)

Background

Lessons Learned Throughout APR:

a) Re-balance economist’s role toward core responsibilities. b) Additional enabling support from Agency needed; ensure business areas manage change impacts appropriately within their work area; c) Better understanding/visibility into agency processes & key contacts;d) More resources allocated to PCT e) Changes require time; rushed ones can result errors.f) Added investment needs: establishment/enforcement process.g) Refinements made to engagement model.h) Technical support provided (e.g., test environments).

Discussion Recommendation Update Cycles

Research potential major changes throughout year rather than deferring all until last three months financial years proved undesirable during previous two cycles.

Major changes should not wait up a full year if they confer substantial benefits on providers, participants or NDIA.

Introduce significant price control changes in February annually as per Fair Work Commission revisions and ABS indexation updates.

Substantial changes need six-month lead-time for research, sector consultation drafting responses cognitive testing with affected parties system coding.

Updated Price Guide documents must be available at least six weeks prior date of effect except where dependent external bodies like the Fair Work Commission policy codes released same timeframe prices after relevant authorities decisions.

DISCLOSURE LOG

FOR OFFICIAL USE ONLY

Pricing Reference Group	Date	Item Number
Pricing Reference Group	July, Year 7/2019	Item Number 2.3

• Consideration could be given to implementing inflationary indexation as October three months after announcement allowing providers adequate lead time adjusting changes updating service agreements systems.

Discussion - Recommendation Additional items FY APR

5 Findings suggested that NDIA should examine following areas part year: a The arrangements capacity building supports other than therapy supports noting workers delivering these supported covered Social Community Home Care Disability Services Industry Award therefore indexed with Activities Daily Living support category; b price limits capacities building supports other than therapy supports including nursing noted prices not reviewed since NDIS commenced;c price limits therapists assistants whether different might appropriate shifts;d Arrangements allow therapists other providers recover costs consumables provided participants part support;e adequacy current establishment fee arrangement andf Price limits funding amounts Plan Management noted prices not reviewed since NDIS commence submissions plan managers inadequate. While recommendations specifically included consultations PCT committed establish working group investigate travel for therapy providers argued strong evidence effectiveness providing treatment from providers specialise condition ongoing relationship rather those happen particular radius. Accordingly PRG recommended ELT providers already operating competitive open markets allowed quote travel However did accept full deregulation stage so alternative avenues partial need investigated.PRG agree include in the years research discussions provider remainder calendar year.

Discussion - Recommendation: Additional items WA Price Review

The made number of apart addressed 2018-19 APR:(a) Recommendation work relevant Commonwealth State Territory Departments monitor economic conditions Western Australia Queensland South Australia view making temporary adjustments controls proactively manage potential impacts supply disability goods services economic trends states contra cyclical national trend.Work Plan Annual Monitoring Review Prices Controls Page Page Number/Total Pages |

Disclosure Log

FOR OFFICIAL USE ONLY

Pricing Reference Group Item: Item-Number: PricingReferenceGroup Date: Date: July, Year: Year: 2019

(b) Recommendation ⁥: The NDIA should …should examine whether a loading should be applied on price limits or plan funding amounts within outer regional areas. (c) Recommendation ⁧: The NDIA must engage with WA participants and providers regarding share management arrangements in NDIS mechanisms supporting these arrangements delivery mechanism. d Recommendation ⁨: NDIA examines implications of domestic worker exception Industrial Relations Act (WA) for disability supports under NDIS.

Discussion - Suggested workplan PCT 2019–20

There were other issues during APR that need further investigation: a Group based care – Rather than use arbitrary formula to cover non-face-to-face time entailed delivering services, Review recommended introducing specific item which provider could accurately bill this component cost group participant is x where x number participation rather y fixed component face-time accordingly alternative approaches needed consider.b Activity-based transport Consider case when Provider takes Participant craft group session hour transportation each way. Currently entire minutes billed against Community Participation fine workers’ time if Worker uses their own car Social Home Care Disability Services Industry Award 2010 SCHADS requires them paid per kilometre employer costs associated running the car difficult without travel component Accordingly review recommend outing drop down box activity itself one allocate parking tolls transport However recommendation required consideration overhead included prices limit idea separating activities from associated transport travelling vehicle still useful understanding finances only allowed.c High Intensity Supports During consultations Review Providers agreed three levels high intensity service however available time not possible clarify descriptions appropriate thresholds Further consultation required.

Disclosure Log

FOR OFFICIAL USE ONLY

Pricing Reference Group - July 30th, Item 2.3(d)

Contingencies: There may arise unexpected events that can significantly impact participant plans despite their infrequency. For instance: a previously peaceful individual might suddenly develop anger management issues requiring separate accommodation due to which there’s no “bucket” available within an agency managing funds on behalf of its clients, hence necessitating solutions like ‘re-insurance’. Providers could elect $6 per week from each client towards insurance covering stipulated emergency services if such a solution were developed.

Disclosure Log

FOR OFFICIAL USE ONLY

Pricing Reference Group - Item 2.3 | Date: July 30th, 2019

(c) Reforming Provider Price Guide. The current guide could become more user-friendly too—with release planned as early as July, a step towards this goal. The PCT is providing clarifications along with worked examples linked through their Support Catalogue. d) Work underway developing tenders for benchmark services: • One tender component would provide minimal set free service(s), enabling providers who are unwilling or unable pay full suite from market provider qualify TTP but not receive report comparing them against sector benchmarks; • Second will compile annual reports using both commercial & free benchmark data; initially agreement needed on minimum dataset (MDS). This should align closely MDS Agency has used survey purposes over years now. PCT intend analyze data in third quarter FY-20 to inform changes effective Jul’ next year, e) PCT team releasing publications soon including pricing strategy paper and WA Pricing Review Report among others. Next draft expected methodological aspects.

Disclosure Log

Pricing Reference Group | Item 2.3 | FOR OFFICIAL USE ONLY | MR25/01967 FOI 24/25-2242 | Date: July 30th , Year : 2019

Discussion Recommendation Note changes to size structure of PCT FY2019 - 20

The PCT is expanding its size & structure to undertake above work agenda financial year This will include three teams largely contractors with responsibility Policy Deployment Engagement.

(a) Standing consultation groups While forms expert working from time specific issues it would be helpful explore use having ongoing group interact at broader level particular types suppliers or that can consider smaller technical issue .

8.5 PCT also provides secretariat services PRG therefore requires capacity administrative assistance. Attachment: A – An example proposed steps change in this case provider travel restrictions

Disclosure Log

Pricing Reference Group - Item 2.3, July 30th, 2019

Attachment A – An example of proposed steps to a change — in this case, provider travel restrictions

Examples of Activities:

• ToR – Draft Terms of Reference (❖ ToR) – ❜ Reviewed – Endorsed by Pricing Reference Group (PRG)

Tender

– Issue Tender – Submissions received – Submissions assessed – Award tender

Issues Paper

– Research – Draft Issues Paper – Review Issues Paper – Preparation: Internal stakeholder engagement – Engage with internal stakeholders – Actions from internal stakeholder engagement

Consultations

– Strategy consultation – Approval strategy approval – Receive submissions

Workshop

– Prepare workshop preparation – Recruitment recruitment – Conduct conduct workshop – Consolidation consolidation insights – Analysis analysis insight – Stakeholders engage internal stakeholders

Discussion Paper

– Draft DP discussion paper draft – Write release write strategy – Approve approve the release strategy – Release discuss release discussion paper – Information receive information communication plan for implementation – Plan management change implementaion

Recommendations

– All consolidate all consolidated information final report review – Report recommendations write assessment impact submission PRG to – Stakeholders engage internal sign-off