The Difference between NDIS Self-managed, Plan-managed and NDIA managed
We're fortunate to have the National Disability Insurance Scheme (NDIS) in Australia, a program that offers support and funding for individuals with disabilities. When it comes to managing the money received through the NDIS, there are three options to consider: Self-managed funding, Plan-managed funding, and NDIA-managed (or Agency-managed) funding. Each option has its own advantages and disadvantages. Let's take a closer look at these three approaches so you can figure out which one is right for you.
Self-managed funding
Self-managing means that you or your nominee take control of managing your NDIS funds on your own. It allows you to choose the supports that work best for you. Self-managing your NDIS funding gives you the power to be in charge, be independent, and have the flexibility to organise and pay for the support you need.
How it works is quite straightforward. You choose the services you need, you pay for it and keep the receipt as proof of payment. After that, you can submit the invoice through the NDIS portal (PRODA) and within just two days, you'll receive the money back as reimbursement. For big purchases the NDIS might even pay you the money upfront.
If you are thinking about self-managing you need to understand your responsibilities as a self-manager, the benefits and the disadvantages that come with it.
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Choose support that works towards your personal plan goals.
Book your services and sign service agreements with your providers.
Pay for your services yourself and on time.
Keep records of all your invoices and receipts related to your NDIS plan
Claim back your payments through the online NDIS portal.
Prepare your plan reassessment meeting.
Participate in payment auditing if they occur.
Manage your total NDIS budget and make smart financial decisions so your plan doesn’t run out early.
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Flexibility in deciding what support you want and what provider you use (as long as it suits your goals).
Not tied to the NDIS Price Guide: you can still choose to purchase support when it exceeds the NDIS rates.
Not restricted to only using NDIS registered providers, you can hire whoever you want. This is particularly beneficial for participants in rural/remote areas with limited providers available.
Control over your own funding and manage your own budget.
You're not alone! Even if you choose to self-manage your NDIS funds, you can still rely on your Local Area Coordinator (LAC) or NDIA planner for assistance. Additionally, the NDIS website offers numerous resources to help you navigate the process and find support.
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Some providers that are not NDIS registered can be more expensive.
You need to have the capacity and time to do admin tasks like engage with providers, pay invoices, record receipts and lodge claims.
You might have to pay a provider before you receive your NDIS reimbursement, you have to be capable of pre-paying this and being temporarily out of pocket.
Plan-managed funding
A plan manager is a third-party provider that helps you manage your NDIS funding. They keep track of your budget and take care of financial reporting & administration tasks for you.
The role of the Plan Manager is to ensure your plan is implemented as intended. This includes ensuring funds are being spent in accordance with your plan. Plan Management Providers should work collaboratively with you (the Participant) to understand the funds available within your plan and provide advice about how to draw on this funding to achieve your goals and outcomes.
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The NDIS Guide to Plan Management does not prescribe what services a plan manager should provide, so the services offered vary between providers. These are some of the most occurring services of plan managers:
Making sure your support is in line with your NDIS plan goals.
Paying your bills and managing your NDIS claims.
Sending you monthly financial statements to help you track your plan spending.
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Supporting day-to-day administration, management or maintenance of your entire NDIS plan.
Connecting you with Providers and community support services.
Arranging or rostering your services.
Providing disability related advocacy services.
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You can use providers that are not NDIS registered (similar to self-managed).
The NDIS includes funding to pay for your Plan Manager separate from your other services and supports in your budget. In other words you won’t take funds away from your core support when relying on a plan manager.
You don’t have to worry about the financial side of your plan because your plan manager will do this for you.
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If you choose a provider who charges above the NDIS Price Guide, you will need to pay the difference yourself because Plan Managers have to stick to the price guide.
Like any other service provider/service, you may engage a Plan Manager who provides a poor service, is slow to pay invoices, unresponsive to your needs and unhelpful. So, as with any other NDIS Providers that you engage, look for recommendations or meet with prospective Plan Managers before choosing a Plan Manager.
NDIA (Agency) managed funding
Just like a Plan Manager, the NDIA helps you manage your NDIS plan. The difference is that the NDIA is a government agency while a Plan Manager is an independent Provider. This comes with its own advantages and disadvantages.
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Your Providers claim their payment electronically from your NDIS funding. You never have to pay for services upfront or manually lodge your claims.
The NDIA will manage the financial side of your plan, do your bookkeeping and keep records of your spending (similar to being plan managed).
The NDIA service is totally free to you (the Participant).
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You cannot use unregistered Providers which means you are very limited in your choices. This is especially challenging in rural and remote areas.
So how do you change the way your plan is managed?
You can change how your NDIS money is managed anytime. Just call the NDIS at 1800 800 110 and ask for a 'Plan Variation.'
You don't need to qualify for any specific requirements to make this change, but they might ask you why you want to swap. Some reasons people choose to swap to Self Management or Plan Management are to have access to different providers and get more help with managing their funding. Once the NDIS approves your request, they will get in touch with you.
It really is that easy!
Remember…
Managing your NDIS fund plays a crucial role in ensuring the success of your package. That's why it's important to carefully consider who will take on this responsibility. To make the right choice, it's essential to understand the differences between self-managed funding, plan-managed funding, and NDIA managed funding. Take into account your preferences, how involved you want to be, and the level of support you need to achieve your goals. By carefully considering these factors, you can select the option that best fits your needs and sets you up for success.
Remember, you can always reassess and change your funding management approach if it no longer meets your needs. Whether you choose self-management, plan-management, or NDIA management, the ultimate goal remains the same: to use your NDIS funds effectively and empower yourself to live a fulfilling life.
If you have any further questions or need assistance in making a decision, reach out to the NDIS for guidance and support. They are there to help you navigate the process and make the most out of your NDIS funding.
