What is NDIS Plan Management? - The Ultimate Guide
29 November 2022
NDIS participants have three different options to choose from when it comes to plan types. In this post, we’ll be breaking down what they are and comparing them to help you figure out which one is a better fit for you. Let’s get started.
In this post, we'll cover:
1. NDIA managed funding
What is NDIA managed funding?
NDIA managed funding (also known as NDIS managed funding or Agency managed NDIS) is when a NDIS participant decides to have the NDIA manage their fund in their NDIS plan.
Here's how it works
- The NDIA will be responsible for handling all payments and administration for you
- The NDIA will keep records and receipts on your behalf
- You will still remain in charge of choosing your desired NDIS providers however you are only able to use your funding with registered providers under the NDIS
Pros of NDIA managed funding
- Free of charge
- Having your NDIS plan managed by the NDIA can save you a lot of time and energy
- Removes any financial and administrative accountability and stress
- Removes the responsibility of having to keep track of paperwork
- You’ll always be charged according to the NDIS price guideline as you’ll only be dealing with registered providers
Cons of NDIA managed funding
- Limits flexibility
- Limits the range of NDIS providers you can utilise to exclude non registered providers. This means that local service providers that are unregistered will not be able to provide their services to you even if they have the best price or service.
- If you live in a remote area, there may not be any registered local providers available for you to utilise leaving you with no options
2. Self-managed funding
A common question NDIS participants ask is ‘how to self-manage my NDIS plan?’ In order to answer this question, we first need to discuss what self-managed funding is and whether or not it’s a viable option for NDIS participants.
What is self-management NDIS?
Self-managed funding is a plan type that gives NDIS participants greater control over the types of support they would like to buy in order to reach their plan goals. This plan type allows NDIS participants to manage their NDIS funding. However, with greater control comes greater responsibility. Let’s take a look at the various rights and responsibilities as a self-manager.
Your rights and responsibilities as a self manager
- Buying supports that meet your goals in your NDIS plan
- Ensuring the supports you buy are good value-for-money as you’ll need to stay within your budget
- Choosing how much to spend
- Making clear agreements with your providers about the supports you will receive and clarifying details such as how the service will be delivered and payment.
- Claiming and paying for supports by making payment requests and paying for your supports on time
- Keeping records of invoices and receipts
- Providing proof of how you’ve used your self-managed funding
- Notifying the NDIA of any updates that may impact your ability to meet your responsibilities as a self-manager
How it works (how to self-manage my NDIS plan)
Unlike NDIA managed funding, you will be responsible for managing all aspects of your NDIS funding (NDIS self-funded), such as:
- Buying supports that align with your NDIS plan goals
- Handling all payments and administration via the NDIS participant portal
- Requesting invoices and keeping records and receipts of your purchases
- Pay your providers on time
- Alert the NDIA of any major changes that may impact your ability to manage your funds yourself
- Attend your plan review and discuss how you’ve been using your self-managed funding to work towards your goal
Pros of self-managed funding
- Greater choice when deciding which supports to purchase as long as they are in line with your plan
- You have the flexibility to choose from a wide range of both registered and unregistered NDIS service providers to help you meet your plan goals.
- You’ll have the capacity to employ staff directly, or have other people employ staff on your behalf
- You’ll have the ability to negotiate supports that provide the best greatest for money
- You’ll havefull control over your NDIS plan and management of your budget for the entirety of your plan
Cons of self-managed funding
- Very time consuming
- Greater responsibility
- Need to resolve billing issues yourself
- Need to meet with lots of people and providers
- Places you under some financial and administrative accountability and stress
- Requires certain skills such as book keeping and using software
- You may be required to provide upfront payment and wait for reimbursement
How do I pay for my own supports?
All payment requests can be done online using the myplace portal. Once you’ve arranged your supports and providers, you’ll need to pay for them using your NDIS funding. You have two options:
A. request payment before paying your provider
B. request payment after paying your provider
3. Plan-managed funding
What is plan management NDIS?
Plan managed funding refers to when a NDIS participant enlists the support of a plan manager to help them manage their funding. This is completely free and fully funded by the NDIS. Plan managers are registered NDIS providers that are considered experts in professional funding.
Here's how it works
- In order to receive support from a plan manager, you will first need to discuss this with the NDIA during one of your plan meetings
- From here, the NDIA will allocate separate funding to pay for your plan manager
- Now you can source a plan manager that suits your preferences. To do this, you can contact your Local Area Coordinator (LAC) or support coordinator for assistance. You can also utilize the provider finder tool found on the NDIS myplace participant portal or search for a provider online.
- You can now create a service agreement with your plan manager that discusses key areas such as what services will be provided, how these services will be provided and how long they will be your plan manager.
Responsibilities of a plan manager
Similar to the NDIA managed funding, plan managers will take on more responsibilities and tasks such as:
- Receive invoices and pay for all the supports that you have asked them to manage
- Send you monthly statements to help you track your spending
- Advise you when your NDIS funds are running low
- Manage all administration and paperwork
- Manage your financial reporting requirements
Pros of plan managed funding
- Plan managers are free of charge
- Can give feedback and direction as required
- Will be there to help educate you along the way
- Advise you on service provider options that will fit your budget
- Ensure that you don’t get overcharged for services
- Save you a lot of time and energy
- Remove any financial and administrative accountability and stress
- Broader options: plan managers can help you access both registered and unregistered provider
Cons of plan managed funding
- Limited involvement in managing your funding
- You run the risk of connecting with plan manager that delivers a poor service. That’s why it’s important to do your research, meet with providers and seek advice if needed.
How do I switch plan types?
It is possible to switch your plan type at any point during your plan, whether you have a plan review coming up or not. There is a simple 3 step process:
- Call the NDIS or contact your LAC and ask them for a ‘light touch review’ or ‘desktop review’
- Explain that you want to switch plan types. It’s important to note that you may be asked why you would like to switch. To ensure your request is approved as quickly as possible, provide as much detail in your explanation as possible.
- You will contacted by the NDIS or your LAC when your request is approved
Summary
The next time you’re comparing Agency managed vs plan managed or NDIA managed vs plan managed – it’s important to remember that each plan type has their own strengths and weaknesses. Ultimately, deciding between these three NDIS plan management options will come down to your individual needs and requirements.
If you’re someone who is looking for full control, autonomy and flexibility over your NDIS funding, you may find that self-managed funding is a more suitable option.
If you’re someone who prefers less responsibility and stress, then NDIA managed funding may be a more suitable option for you.
If you’re someone who is looking for a provider that works alongside you and educates you along the way, plan managed funding could be the most suitable option.