Recently, the NDIS has been under increasing pressure to reduce inflation and increasing costs. In interviews throughout May, NDIS Minister Bill Shorten identified several ways in which the NDIS will be addressing some of these concerns. At the top of the list was reducing Intra-Plan Inflation.
What is Intra-Plan Inflation?
Intra-Plan inflation is when a participant on the NDIS is encouraged to use up their funding early, with additional funding then being made available through early plan reviews and/or payment enquiries.
While Bill Shorten and the NDIS do acknowledge that not all plans are built perfectly for a participant’s needs, and that early plan reviews are still needed, they will be looking further into those participants who are encouraged to exhaust funding early with the expectation of a “top up” that is necessarily needed.
Early exhaustion of funding is simply happening too frequently for the NDIS’s liking, and they will be reviewing why this is happening and cracking down on reoccurring issues.
What Causes Intra-Plan Inflation?
Several key areas have been identified by the NDIS as driving factors behind early exhaustion of plan funding. These are:
Hours and rates of supports being used exceeding what the participant is funded for.
Overspending core budgets outside of intended purpose.
Claiming supports incorrectly.
The NDIS will be looking at providers, including plan managers and support coordinators, who encourage participants to spend above their means with the promise of additional funding being made available at the end of the plan.
How Might This Affect Plans with Exhausted Funding?
Since this focus on reducing Intra-Plan Inflation was announced, there have been some changes to how the NDIS addresses plans with exhausted funding. They have recently clarified that “Spending a budget before the end of a set plan timeframe is not a reason to request a plan review.” This may result in fewer plans being renewed early.
As a plan manager, we have also noticed that a higher percentage of payment enquiries are now being rejected. The payment enquiry process has never been a guarantee for additional funding at the conclusion of an exhausted plan, but now providers can rely less on unpaid invoices being approved by the NDIA.
What Can Be Done to Avoid Intra-Plan Inflation?
The best way providers can ensure that participants aren’t exhausting funding early is to ensure that service agreements and/or schedules of support are written up before services commence. These documents should outline the agreed rates and delivery frequencies of any supports. This should also be arranged in discussion with the participant to ensure that it is within their allocated budgets.
Any variations or expected overspending from these agreed documents should be discussed directly with the participant or their representatives.
Plan managers and support coordinators can assist with ensuring that all proposed supports fit into a participant’s budget.