CHE Seminar Series: Understanding the role of price caps in NDIS markets
This paper examines how providers in the National Disability Insurance Scheme (NDIS) adjust prices and service volumes in response to price cap changes. Using detailed service usage data from Kismet, a plan manager for the NDIS, we analyse short-run responses in the weeks following the 1 July 2025 price cap adjustments. Market prices respond quickly in both directions: a 1% increase in the cap raises provider prices by 0.61% on average, including providers that previously priced below the cap (“pricing headroom”), while a 1% decrease lowers prices by 0.9%, with larger reductions among providers previously at the cap. Service volumes remain broadly stable, with minor reductions concentrated among providers facing large cap cuts. These results highlight asymmetries in market responses and suggest that price cap adjustments affect both expenditure and service provision, underscoring the importance of ongoing monitoring of provider behaviour.
Speaker profile
Pelin Akyol is Research Manager at the e61 Institute and an applied economist with a Ph.D. in Economics from Penn State University. Her research focuses on education, labour markets, demographic change, and health. Her recent work examines fertility decisions, caregiving behaviour, and gender differences in educational outcomes, using survey and administrative data. Before joining e61, she was an Assistant Professor at Bilkent University. At e61, she leads research on fertility and demographic challenges, care responsibilities, and the National Disability Insurance Scheme.
Weekly seminar series
As part of our Centre's vibrant research culture, we host a weekly seminar series. Visiting and invited researchers present current research relating to the economics of health and wellbeing, and the healthcare sector. Visitors are welcome to join these sessions where discussion and debate is encouraged.
For further information on our seminar series, please contact Trong-Anh.Trinh@monash.edu .
Event Details
- Date:
- 1 April 2026 at 12:00 pm – 1:00 pm
- Venue:
- Caulfield campus, Building C, level 1, room C1.21
- Categories:
- CHE Seminar; General
Description
This paper examines how providers in the National Disability Insurance Scheme (NDIS) adjust prices and service volumes in response to price cap changes. Using detailed service usage data from Kismet, a plan manager for the NDIS, we analyse short-run responses in the weeks following the 1 July 2025 price cap adjustments. Market prices respond quickly in both directions: a 1% increase in the cap raises provider prices by 0.61% on average, including providers that previously priced below the cap (“pricing headroom”), while a 1% decrease lowers prices by 0.9%, with larger reductions among providers previously at the cap. Service volumes remain broadly stable, with minor reductions concentrated among providers facing large cap cuts. These results highlight asymmetries in market responses and suggest that price cap adjustments affect both expenditure and service provision, underscoring the importance of ongoing monitoring of provider behaviour.
Speaker profile
Pelin Akyol is Research Manager at the e61 Institute and an applied economist with a Ph.D. in Economics from Penn State University. Her research focuses on education, labour markets, demographic change, and health. Her recent work examines fertility decisions, caregiving behaviour, and gender differences in educational outcomes, using survey and administrative data. Before joining e61, she was an Assistant Professor at Bilkent University. At e61, she leads research on fertility and demographic challenges, care responsibilities, and the National Disability Insurance Scheme.
Weekly seminar series
As part of our Centre's vibrant research culture, we host a weekly seminar series. Visiting and invited researchers present current research relating to the economics of health and wellbeing, and the healthcare sector. Visitors are welcome to join these sessions where discussion and debate is encouraged.
For further information on our seminar series, please contact Trong-Anh.Trinh@monash.edu .