5 Steps Towards an NDIS Reboot Mr. Shorten Could Enact Today: An Open Letter to the Disability Services Minister

Dear Mr. Shorten,

It’s been a month since you announced plans to conduct a review into the National Disability Insurance Scheme (NDIS), which you say needs to be brought “back on track” in order to meet the goals and expectations it’s aspired to since inception.

Of particular interest are your thoughts on fraud. As a registered NDIS Plan Manager, Capital Guardians is working at the coal-face of NDIS payments, and we share your concern at seeing the loss of value to NDIS Participants by a system that’s missing the structural controls required to prevent the exploitation of spending choice.

Your review of Scheme spending is well past due and, to help get you started, we’ve put together five things you can begin to implement now that cost little to nothing and can be put into effect within the next three-to-six months.

1. Enforce Support Coordinator Minimum Standards

Currently, anyone can be an unregistered Support Coordinator and subsequently build the trust of clients – effectively gaining control over their package spending. Implementing registration requirements and minimum qualifications for Support Coordinators would immediately enable better oversight and prevent significant amounts of mismanagement.

2. Give Plan Managers a “Fraud Squad” Contact

Establishing a direct line of communication between Plan Managers and a dedicated fraud investigator to transparently share transaction details, would mean service providers would know they are facing extra scrutiny in “real time”. This may not prevent dodgy dealings entirely, but should act as a solid deterrant.

3. Focus on Invoice Approvals

Mandate an independent approval process for Participant invoices. Current practices of automatic approvals based on Participant service agreements allow for no control on prices, hours or even the appropriateness of penalty time costs versus their informal supports by family and friends.

Make independent invoice approval by the Participant or their nominee mandatory by default, with exceptions mandating a process of independence to guardianship or administration, Power of Attorney or funded independent approval, including Plan Managers, Support Coordinators or advocates.

4. Bring in the Independence Rule

Prevent conflicts of interest by ensuring providers who offer support coordination or plan management services cannot provide other services to the same client.

This ‘independence rule’ would promote true choice and control for Participants, leading to more care hours and lower overall costs. This concept has been much discussed and expected, but for some reason is yet to be implemented. Now’s the time.

5. Stop the NDIS Price Guide from Being the Default Price

You can reduce predatory pricing by adopting aggressive price transparency measures.

Many products and services regularly cost 30 percent more than a free market would otherwise dictate. Everyone has to pay for a premium service, while rarely receiving the service inferred by the ticket price.

Given the NDIA is able to dictate a maximum price, it should also help Participants to better understand what they’re paying for. So why not create a pricing transparency team and website that interprets service agreements, offers market recommendations, and educates Participants, Support Coordinators, and Plan Managers on value for money? Make it compulsory for Plan Managers to get Participants to sign off on a market price report for the service providers they introduce, and support the overall education required for ensuring value for money.

Mr. Shorten, as you have already noted, people with disability deserve “an NDIS that works with them and their lives”. At Capital Guardians, we believe that tackling overspending is the most important thing you can do to get the ball rolling in the right direction.

NDIS Participants and the Australian taxpayer shouldn’t have to wait until October to begin benefitting from your planned reform. The above five suggestions are actionable today.

Sincerely,

Ross McDonald and the team at Capital Guardians