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

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

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

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

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

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

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

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

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