NDIS Plan management Vs. Self Management
Introduction
The National Disability Insurance Scheme (NDIS) is a funding introduced to eligible people with disabilities to provide support for their individual needs provided by NDIA. Plan management and self management are considered to be two of the most prominent funding methods or management systems in NDIS. It is vital to understand one’s funding method and how it should be managed for a hassle free experience. In this blog we’ll discuss the fundamentals of both management systems, their benefits and shortcomings in order to help individuals make an informed decision according to their personal needs.
What is Plan Management?
A third party or also known as a “Plan Manager” is assigned to manage the funding for any NDIS participant as a formality in plan management. The NDIS will directly pay your plan manager along with his allowance which would be additional to your funding amount. From that point onwards your plan manager will settle all your bills, reimburse anything you paid upfront and aid in tracking your plan spending.
Pros and Cons of Plan Management
It is not essential for an individual to select a plan manager with excellent skills but a plan manager who has a wider scope can help participants accumulate the best out of their NDIS budget. A plan manager offers guidance and advice on the right choices a participant should go for while finding the suitable services and providers who can cater a participant’s both budget and needs. Moreover the complexity of the NDIS functions and paperwork is solely the plan manager’s responsibility.
However, one of the main shortcomings of following a plan management system is pricing. If the plan manager of your choice charges above the NDIS price guide it is essential that the participants should pay the difference out of their pocket as plan managers are requested to align with the common price guide. If your plan provider is excellent at his or her job you are promised to have a hassle-free process but if not your needs won’t be catered and you’ll go through the extra load of work. The services provided would be poor, and your needs would be left unresponsive, your funding won’t be pre planned and spent wisely which will ultimately lead you to a disappointing experience.
What is Self Management?
Self management is when the NDIS participant is solely responsible and in control of managing their NDIS funds. The participant will directly receive funding by NDIA and the participant has access to a wider range of services and service providers. Since such participants are not a part of the plan management policies, they are not tied to the guidelines of the NDIS price guide which gives them the ability to negotiate prices or pay any amount they prefer.
Pros and Cons of Self Management
Participants who are self managed, will have the flexibility in hiring whichever provider they prefer and the freedom to negotiate the costs. They also possess the control over their funding and have the ability to manage their own budget during the provided time span. Self-managed participants also have the power to grow a staff directly under them to act on their behalf of all procedures which portrays immense control provided to a participant by this management process.
Having said that self management has its own set of cons, a highlighted shortcoming of self management is the administrative work and effort a participant should allocate for the formalities. Administrative tasks such as record keeping, budgeting, invoicing will be a self managed participant’s sole responsibility. This work can be time consuming and an individual who is already busy with their personal life has more complex formalities to focus on which can be a tedious task. Moreover, taking care of such tasks without the support of a professional can lead to huge risks of making errors in paperwork(budgeting or claiming funds from the portal).
Conclusion
The verdict of “NDIS plan management vs. self management” ultimately depends on the participant’s capabilities and preferences. Both systems offer different benefits while bearing a considerable amount of shortcomings and the NDIS participant has the ability to decide on which system’s shortcomings would they consider moving forward with based on their liking.
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