NDIS Self Management vs Plan Management: A Guide

Published at 24-04-2025 11:23:08

Tags: #ForParticipants

When managing your NDIS funding, you have choices in how you approach your services and spending. This guide explores self-management and plan management options, explaining how each works, its advantages and disadvantages, and providing tips to make the most of your NDIS plan.

Self-Management

Self-managing your NDIS plan gives you full control over your funding and provider selection. This approach allows you to select, pay, and claim for services directly, with fewer restrictions on provider choices and pricing.

In Self-Management, You:

• Have Flexibility with Providers: Choose NDIS-registered or non-registered providers, including mainstream and disability-specific services.
• Set Your Rates: You’re not bound to the NDIS Price Guide, meaning you can negotiate or pay a provider's requested rate.

What You Need to Do:

• Open a Dedicated Bank Account: Your NDIS funds need to be in an account solely for your NDIS transactions. It’s recommended to use a fee-free account.
• Choose and Coordinate Your Providers: You arrange and book services directly, setting up any needed service agreements.
• Manage Payments and Claims: Pay for services upfront and claim reimbursements through the NDIS portal, which typically takes around two days for processing.

Tips for Managing Payments:

• Keep a ‘Float’ in your bank account to cover upfront costs.
• Consider Using a Credit Card attached to your NDIS bank account for easier tracking and potential rewards.

Tracking Your Budget and Keeping Records:

• Keep detailed records of invoices and receipts, as these may be needed for audits.
• Create a Separate Email Account for NDIS-related communications.
• Use Cloud Storage to organize invoices and receipts for easy access.

Linking Purchases to Your Goals: The services and items you purchase should align with your NDIS goals. This means you need to assess if each purchase is a "reasonable and necessary" disability-related expense.

Support for Self-Managing: If you require assistance with self-managing, you can utilize:

• Support coordination hours, bookkeeping, and accounting services.
• Software tools to streamline payments and budgeting.

Pros of Self-Managing:

• Broader provider selection and ability to negotiate prices.
• Ideal for participants in rural areas where provider options are limited.
• Greater flexibility to hire personal support staff directly.

Cons of Self-Managing:

• You need to manage all payments, budgeting, and receipts.
• Must be prepared for administrative responsibilities and tracking expenses.

Plan Management

Plan management combines flexibility with convenience. You hire a Plan Manager who will handle payments and reimbursements, while you still enjoy access to both registered and non-registered providers.

With Plan Management, Your Plan Manager will:

• Handle Payments: Pay providers directly, either from invoices sent by you or directly from providers.
• Track Your Spending: Send monthly statements to monitor your plan budget.
• Help with Service Agreements: Some Plan Managers offer assistance in setting up service agreements.

Advantages of Plan Management:

• Access to More Providers: Like self-managing, you’re not restricted to registered providers, allowing flexibility in selecting services.
• No Need for Invoices or Receipts: Your Plan Manager keeps records, reducing paperwork on your end.
• Ease with Budget Management: A good Plan Manager will help you get the most value from your funding.

Disadvantages of Plan Management:

• Bound to the NDIS Price Guide: If a provider charges above the guide, you’ll need to cover the difference.
• Service Quality Varies: As with any service, some Plan Managers may be unresponsive or slow with payments, so researching options is important.

Choosing Between Self Management and Plan Management

Tips for Successful Plan and Self-Management

Self-Management Tips:

• Budget Wisely: Plan your yearly expenses and monitor your spending closely.
• Use Separate Email and Storage: Organize your NDIS documents to streamline record-keeping.
• Link Purchases to Goals: Ensure all expenses align with your NDIS goals for compliance.

Plan Management Tips:

• Research Your Plan Manager: Seek recommendations and meet with prospective managers to ensure a good fit.
• Verify Service Agreements: Confirm that your Plan Manager provides clear communication on billing and supports.

Additional Management Options: Agency Managed and Hybrid Plans

If your plan is Agency Managed, the NDIS directly pays registered providers on your behalf, restricting you to NDIS-registered providers only. This can limit options but simplifies billing. Alternatively, a Hybrid Plan allows you to self-manage specific categories (like core supports) while agency or plan managing others, providing flexibility and choice where you need it most.

Whether self-managing or plan-managing, both approaches give you control and choice, enhancing your ability to tailor services to your needs. Understanding your options helps you make the best decision for managing your NDIS plan effectively.