How the NDIS is changing the way Australians with disability use healthcare
CHE RESEARCH BITES
By Bernice Hua Ma, Samia Badji, Gang Chen and Dennis Petrie
21 November, 2025
The National Disability Insurance Scheme (NDIS) provides personalised social care—such as assistance with daily living, community participation, and capacity building—for Australians with significant disability. But does this shift towards person-centred support change how participants use the broader healthcare system?
A recent study used NDIS data linked to Medicare records to investigate this question. Researchers tracked GPs' visits, specialist consultations, allied health services (such as physiotherapy and psychology), and mental health prescriptions for NDIS participants. By analysing the scheme’s staggered rollout across Australia, they could measure changes in healthcare use for up to 1.5 years after people entered the NDIS.
The study found that NDIS participants reduced their use of Medicare-funded mental health and allied health services after joining the scheme, but there were no significant changes in GP visits, specialist consultations, or mental health prescriptions. These reductions in allied health and mental health services were most pronounced among people living in major cities, males and children and young people.
The findings suggest that psychosocial and allied health supports funded through the NDIS are partially replacing similar therapies previously accessed via Medicare. This could indicate more appropriate, personalised support tailored to participants’ needs, or it could signal potential gaps in how care is coordinated between NDIS and health systems. However, it’s not yet clear whether this substitution improves outcomes for participants or represents better value across government spending. Policymakers will need to understand how the combination of NDIS support and healthcare services affects the wellbeing of people with disability to ensure equitable and effective support.
Ma BH, Badji S, Petrie D, Chen G. The Impact of Enhancing Social Care on Healthcare Use for People With Disability: Evidence From Australia. Health Econ. 2025 Oct 30. doi: 10.1002/hec.70055.
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CHE Research Bites are short, easy-to-understand summaries of our recent academic papers highlighting new evidence and insights on topical issues in the health and healthcare sectors.
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