NDIS Funds: Plan Management vs Self Management

Navigating the NDIS can prove to be a bit tricky, particularly when it comes to fund management. Looking at the pros and cons of both methods could help you to make a more informed decision on what style of NDIS fund management you want to engage with. Two of the most popular methods of fund management are: self management and plan management, and both offer distinct advantages and challenges. Let’s take a look at these options together.

Plan Management

With plan management, the NDIS directly transfers payments to your plan manager, who will handle all aspects of fund administration, including payments for the supports you’ve enlisted them to manage.

Pros:

1. Administrative Assistance: With a plan manager, there is not need to worry about providers being paid on time. All receipts and invoices are safely stored in case of audits.
2. Access to Expertise: Plan managers can help you to get the most out of your NDIS funds. They ensure that you don’t unexpectedly run out of budget.
3. Provider Flexibility: Participants have access to a broader network of service providers, including smaller entities not registered with the NDIS, thereby expanding their support options.

Cons:

1. Finding the Right Provider: Finding a plan manager that meets your satisfaction may require a considerable amount of time and effort. Find out why Lotus Assist will exceed your expectations here.
2. Potentially Higher Provider Costs: If you opt for a provider with fees exceeding the NDIS Price Guide, you’ll be responsible for covering the additional costs, as plan managers must adhere to the NDIS price guide.

Self Management

Funds allocated for self-management remain separate and do not interfere with other funding areas in your plan. As a self-manager, you directly manage payments to service providers, allowing for greater control over fund utilisation and tailored support arrangements.

Pros:

1. Flexibility: Self management means that you are in control of how your NDIS funds are spent. It gives you the flexibility to try new things.
2. Access to More Providers: Participants have the freedom to engage both registered and unregistered service providers, expanding their support options beyond the NDIS network.
3. Cost Control: With the ability to negotiate service prices and pay providers directly, self management offers greater control over budget allocation.

Cons:

1. Administrative Burden: Managing invoices, record keeping, and compliance with NDIS guidelines can be time consuming and complex, many people liken it to running a small business!
2. Risk of Errors: There is an increased risk of administrative errors, including missed payments and non-compliance with NDIS regulations, potentially leading to funding discrepancies or plan disruptions.
3. Resource Intensive: Self management demands significant time, effort, and organisational skills. Juggling administrative tasks alongside daily responsibilities can be overwhelming.

Choosing the Right Option

If you want assistance managing your NDIS funding, plan management is an ideal option for you. Many individuals favour the additional support and valuable resources provided by a professional plan manager, along with the expanded selection of service providers it facilitates.

However, if you don’t mind the extra administration and are excellent at keeping records, self management may be for you. If you are still unsure over what NDIS fund management style would be best for you, please call us to explore your options.