Self, agency or plan managed – what is best for you?
The Evolution of Plan Management
One of the defining changes over time since the introduction of the NDIS has been the growth of plan management providers who now undertake that service for well over half of all NDIS participants.
In the early days of the NDIS – about 2018 to 2019 – plan managers only supported about 20% of NDIS participants. At that time, approximately 60% of participants were NDIA-managed, with 20% self-managed.
Whilst the NDIS doesn’t release this data in the quarterly reports anymore, we expect that presently over 60% of NDIS participants have plan management, with about 20% NDIA-managed and 20% self-managed. These numbers literally have flipped!
One of the unintended consequences, perhaps, that has been created by this shift has been the rise of unregistered NDIS providers in the market. For someone running a NDIS disability services business, they are able to support plan or self-managed clients as an unregistered business. One needs to be registered to work with clients who are NDIA-managed.
Thus, the market dynamic has shifted and today, only about 6% of disability services organisations are registered with the NDIS. This hasn’t gone unnoticed, and government is looking to respond as this concern has been raised through the Disability Royal Commission and NDIS Review.
What is the difference?
There are three different ways that NDIS participants can manage their funding under the NDIS. These are defined by the NDIS as:
- Self-management: The NDIA provides you with funding so you can access the supports that will best help you pursue your goals.
- Plan-managed funding: The NDIA will provide funding in your plan to pay for a Plan Manager who pays your providers for you, helps you keep track of funds and takes care of financial reporting for you.
- NDIA-managed funding: The NDIA pays your providers on your behalf.
It is also possible to utilize more than one of these options at the same time. It is quite common that we see clients for whom the SIL is NDIA managed, and the other funds are either plan-managed or self-managed.
Regardless of the type of funding, NDIS participants (oftentimes with support of their family/guardian) retain choice and control over where and how monies are spent within the NDIS Plan.
Deciding what is best for you
Through the historical data, the percentage of NDIA payments (out of all NDIS spending) is usually much greater than the percentage number of clients they manage. That would tend to suggest that NDIA-managed clients tend to be those with larger NDIS plan values.
Plan management is obviously very popular for most NDIS participants who find that it gives them a balance between involvement in managing the funds and support with the basic book-keeping and administration. Most plan management providers now have good apps or web portals which provide transparency and oversight to this spending.
For participants wanting the maximum amount of flexibility and control, they will usually choose self-management.
In our experience, there are clients who, where SIL funding is concerned, it might be that it is easier to leave that managed by the NDIA and for the individual or family/guardian to plan manage the remainder of funds.
Conclusion
As a registered provider at Hope Circle, we are able to work with all different NDIS participants no matter whether they are self, NDIA Agency or plan-managed.
We are a registered NDIS provider specialising in providing SIL and in-home & community support to individuals with complex disabilities; and thus have experience liaising with many of the different plan management providers.
For more information regarding our services in Adelaide or Perth, please contact us here.