The National Disability Insurance Agency will implement all 25 recommendations made in an independent review of NDIS pricing, despite an associated cost of up to $420 million.

The recommendations include increasing travel allowances for carers working in rural areas from 20 minutes to 45 minutes; paying more for highly skilled carers who look after clients with complex needs, and temporarily increasing the price of standard care to allow for the cost of overheads and administration.

The NDIS provides a budget to each participant which they can use to pay private or charitable disability service providers for care, accommodation and programs, but the NDIA sets a limit on what providers can charge.

The review into pricing was commissioned last year after some providers complained that those prices were set too low for them to operate at the same level they were before the NDIS was introduced.

The report states that the recommendations should improve industry margins by 2-4 per cent; or even more for providers serving clients who have complex needs or those in rural and remote areas.

The review estimates the cost of implementing their recommendations will cost the NDIA an extra $250 million to $420 million.

Despite this NDIA chairman Dr Helen Nugent said they do not expect the recommendations to "adversely impact the Scheme's longer-term financial sustainability".

NDIA CEO Rob De Luca said they would implement the recommendations as quickly as they can.

"While some recommendations require additional work to understand their full impact, implementation will be phased so that those recommendations that produce the greatest benefit will be actioned first," he said.

Industry welcomes recommendations

Dr Ken Baker, head of the industry's peak body National Disability Services, said implementing the recommendations would provide some relief, but more needed to be done.

"[The review] does recognise that inadequate NDIS prices have created significant risks for some people in the NDIS of not receiving services," he said.

"These are people … in rural and remote locations, but also people with high and complex support needs, people from Aboriginal or culturally and linguistically diverse backgrounds and people that are in crisis.

"The prices at present don't cover the cost of providing support, I think this is a wide-ranging problem and the review hasn't recognised the extent of the problem."

Dr Baker said deregulation of the market needed to be tested soon, as recommended in the review.

"The risk of market failure is significant, and inadequate prices is a significant contributor to that risk," he said.

"So I think it's a good sign that the board and the management of the NDIA have taken the risk of market failure more seriously than in the past."