Myth-Busting Plan Management


PACE Update

NDIS participants have the choice and control to manage their own plans or have the agency or a plan manager assist them. Currently, 59% of NDIS Participants are supported under plan management. However, we still see several misconceptions or myths about plan management that can make choosing the process seem daunting or confusing. In this article, we will debunk some of these myths and provide clarity on what a Plan Manager is and how they can support Participants.


Myth 1: "Plan Management Costs reduce funding for essential supports"

One common misconception about plan management is that the Plan Management Fees associated with this choice will impact a participant's support funding.

This is not true!

The NDIS provides funding for plan management separately from the funding for supports, so choosing plan management will NOT reduce the amount of funding available for other support services. Plan managers are reimbursed at a fixed flat rate per participant per month no matter the participant complexity, so there’s no risk of overspending.


Myth 2: "Plan-Managed Participants can only use registered providers"

Myth = Busted!

Both Plan-Managed and Self-Managed Participants can choose to use unregistered providers, as long as the support helps to achieve their goals. While the NDIS has registered providers, only Agency-Managed Participants are restricted to using them. The NDIS does have a Code of Conduct requirement for all providers, whether they are registered or not.


Myth 3: "Plan-Managed Participants are overcharged for supports"

Quite the opposite actually!

Let's consider what we stated above - Plan Management fees are a fixed cost, and Participants can use both Registered and Unregistered Providers. No matter which type of Provider is used, they cannot charge more than the maximum price limit for each item listed in the NDIS price guide.

Plan Managers often use purpose-built software, such as Planability, that incorporates the price guide and alerts them to any invoices that need investigation. It can check a service date against the calendar to determine if the correct weekend or public holiday rate is charged. Planability can also be set to automatically send invoices to a Participant or their nominee for approval before paying, so everything gets double-checked.


Myth 4: "Plan-Managed Participants do not have complete choice and control over their plan"

Participants are at the centre of the planning process, and their needs and preferences are taken into account when developing their plan. Participants have the final say over what supports and services they want to receive, the service agreements in place, and how they manage their plan. Plan Managers are the financial intermediaries, taking on the administrative burden of budget management, invoicing and auditing.


Share the facts!

Plan managers can help to spread the truth about these myths by ensuring this information is readily available in all of their communications. Many Plan Managers choose to show the differences between Self, Agency, and Plan Management as a simple table that highlights the differences. No matter how you portray it, this is essential information to provide to Participants to ensure they fully understand the benefits of Plan Management to make an informed decision.