1. Update on NDIS transition
NDIS transition issues for local government in Victoria
12 October 2017
Linda McKay
Assistant Director, Community Care and Assessment, DHHS

2. The NDIS is a significant reform in disability services
Overview
The NDIS is a significant reform in disability services
Participant choice and control
Individualised funding (av. $35,000 p.a.)
NDIS pays for ‘all reasonable and necessary’ supports
About 105,000 participants in Victoria
10,000 local government HACC clients
$5.1 billion p.a. ($2.5 bn from Vic govt.)
Disability workforce will double to 48,000.
27 December 2018

3. Indicative funding reductions -- method
Purpose is to help forward planning
Actual reductions will not be the same
Method:
Take individual clients who are potentially eligible
Data was supplied by providers in October 2016
Match these clients to HACC MDS for in-scope activities
Calculate proportion of hours to potentially eligible clients
Apply proportions to total funds
Hence calculate funds split between eligible/not eligible
27 December 2018

4. Actual funding reductions
Not based on indicative reductions
Based on the count of clients with ‘Plan Approved’
As at the end of in-kind period
e.g. 30 Sept 2017 for NEMA
Amount determined by no. of actual clients who have transitioned
Compared to hours to remaining clients
Followed by monthly reductions for remaining clients who get into NDIS (if any)
Using average cost per client
27 December 2018

5. In-kind arrangement vs. progressive cash-out
Department’s preference is the ‘in kind’ method
Alternative method is progressive monthly cash-out
Advantages and disadvantages for both
Must opt for one or the other
Difficult for NDIS to adjust participant plans mid-stream
27 December 2018

6. In-kind arrangement—how it works
During the phase-in period:
We give advance notice of indicative funds reduction
Some of your HACC clients will get into NDIS
But your HACC funds will continue in full during this period
Funds are reduced at the end of transition
According to number of clients getting into NDIS
27 December 2018

7. What to do during in-kind period
Monitor SigBox
When a client gets NDIA status ‘Access Met’ :
Help them prepare for their NDIS care plan meeting
When they get status ‘Plan Approved’ :
Keep providing usual HACC service
Stop charging a HACC fee
Help find a new registered provider to take over for cash after the end of the in-kind period
Or offer your services for cash, if registered.
27 December 2018

8. Extended in-kind period
HACC in-kind period will run for 6 months beyond an area’s phase-in period
Except in NEMA, Central Highlands and Loddon
Reason is delayed client phase-in
Aim is to simplify the funds reduction process
All eligible clients are likely to have completed transition
27 December 2018

9. Loss of fee revenue NDIS rules prevent a ‘co-payment’
HACC fee is regarded as a co-payment
Impact dates from when client has an Approved Plan
We will soon have advice on whether revenue loss can be offset by savings on clients who transition early
27 December 2018