"The groundwork of all happiness is health." - Leigh Hunt

Our recent study shows that the NDIS alone changes mental health spending by about $27m a yr.

The National Disability Insurance Scheme (NDIS) was established In 2013 To help Australians with a disability live more independently, and participate more fully in work and community life.

The scheme was not meant as an alternative choice to health care, let alone to save lots of health dollars.

But in certain circumstances, we show it.

We have Published The first study with large-scale data to make clear how the NDIS rollout affected participants' use of the health system.

As the discussion continues Cost and sustainability of NDIhere's what we got.

There is a blurred line

NDIS provides Personalized Funding Accessing non-clinical support for individuals with disabilities. This could include access to move, speech therapists or accommodation, for instance.

But in practice, the road between non-clinical support and healthcare may be blurred.

For example, some treatments provided by psychologists could also be funded Through NDIS or Medicare.

This raises the vital query of whether the NDIS has modified how individuals with disabilities use the health system.

If some health care shifts to NDI, utilization of Medicare-funded health services may decrease.

But if access to services is improved by NDI – for instance, by providing Transport For medical appointments – this will allow individuals with disabilities to deal with health-related health needs, thereby increasing utilization of the health system.

As national debates about the fee and sustainability of the NDI proceed, we want to know whether the scheme reduces or increases pressure on other sectors, particularly the stretched health system.

what did we do

Our study used anonymized data from lots of of 1000’s of NDI enrollees. We then linked this data to the usage of prescriptions on the Pharmaceutical Benefits Scheme and medical services on the Medicare Benefits Schedule.

We examined visits to GPS, specialists, mental health services, allied health services in addition to mental health prescriptions. We did this for 18 months after entering the scheme.

We compared NDIS participants living in areas where the NDIS was rolled out early with participants where it was rolled out later. We assumed differences after rollout resulting from NDIs.

What did we get?

The NDIS was not expected to affect services that only medical doctors could provide. Our results reflect this. We show that NDI use didn’t significantly affect visits to GPS, specialists, or mental health prescriptions.

However, the NDIS reduced subsidized mental health services (similar to those provided by psychiatrists) per person by 13% per quarter. Another way of expressing that is that there was 0.0348 times less use of mental health services per person over the identical period.

For allied health services (similar to speech therapists or occupational therapists) there may be an 8 percent reduction or 0.0165 less use per quarter.

Reductions in mental health or allied health services could appear small. But when measured nationally and in dollar amounts, the impact becomes clear.

For mental health services only, let's assume Average cost $250 per session, including Medicare rebate. 98.95. This means an out-of-pocket cost of $1,151.05 per session.

After the NDIS rollout, we calculated that this translates to $10.6 million in Medicare spending and $16.3 million in costs a yr. That's .926.9 million a yr 700,000 NDIS participants.

What might explain our results?

Our findings suggest that mental health and allied health supports funded by the NDIS may replace some treatments previously accessed through Medicare.

A discount in mental and allied health services is more more likely to suggest an alternate than an improvement in health. This is because we might expect changes in health conditions to be related to changes in the primary point of contact within the health system, often GPs, yet we found no such changes.

An alternative reason could also be that NDIS usually provides Comprehensive, fully covered services tailored to individual needs.

Earlier, individuals were dependent Mental health treatment plans or Chronic disease management plans From Medicare, which offered limited visits and sometimes had out-of-pocket costs.

Our findings suggest that the prolonged coverage and personalized nature of NDIS-funded supports make them a more attractive option for participants.



We don’t yet know whether this shift of mental or allied health services to the NDIS advantages participants beyond access through Medicare, or affects government spending for these services.

We also don't know if total use of mental and allied health services — funded either by NDI or Medicare — increases or decreases. This is because we didn’t have data on the sorts of services NDIs participants used after we conducted our research.

How can we use our results?

Some people check with the increasing costs of NDI as “blow“. Some see the scheme as an investment, providing advantages in quite a lot of areas. These include employment for participants and carers, or early intervention for youngsters with developmental concerns which might be secure to save lots of heading in the right direction.

Our study provides the primary clear evidence of how the NDIS interacts with health care, showing that the social support provided by the NDIS can reduce pressure on other services.

As governments consider the longer term of the scheme, understanding these cross-sector impacts is vital to constructing a sustainable NDI that delivers support where it’s most needed.