How to understand the NDIS MMM Pricing
What is the MMM Model?
The NDIS uses the Modified Monash Model / MMM 2015 (NOT 2019) to determine whether a location is a city, rural, remote or very remote.
The model measures remoteness and population size on a scale of Modified Monash (MM) category MM 1 - MM 7.
MM 1 is a major city and MM 7 is very remote.
This influences the prices charged by a provider and paid by a participant in a specified location.
How does the NDIS use the MMM Model?
Under the NDIS, the location of a service affects its cost: the more remote the service delivery area, the more expensive it is.
The NDIS currently has 3 levels of pricing for each support:
- MMM 1 - 5 is classified as National Non Remote and uses the standard (lowest) NDIS price rate.
- MMM 6 is classed as National Remote and are generally 40% higher.
- MMM 7 is classed as National Very Remote and are generally 50% higher.
See below for an excerpt from the NDIS Support Catalogue that shows 3 prices for 1 single support.
How can I work out what price level to use?
The MMM rating of a location affects its cost.
NDIS providers and participants can determine the MMM rating of a location using the Health Workforce Locator tool which allows you to input the address of the service and then it advises the MMM rating of that location.
Note: NDIS geographic locations are based on the 2015 MMM (not the 2019 MMM).
How do I use the Health Workforce Locator Tool?
Open the Health Workforce Locator:
Next to 'Modified Monash Model' select the 2015 Checkbox
Click Find Address button and enter the address.
Click Search Location button
View the MMM Classification
Use the appropriate column in the NDIS Support Catalogue.
Exceptions to MMM = Isolated Towns
The NDIA has classified some specific area exceptions as ‘remote’ or ‘very remote’ for planning and pricing purposes if they are a regional area surrounded by remote areas.
The Price Guide contains a list of these exceptions:
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