Plan Managers are feeling the brunt of cost of living more than ever, courtesy of a fifth year of stagnant fees from the NDIS annual price review.Despite operating through a volatile and uncertain future, an increasing demand for Plan Management, and the additional workload navigating the new NDIS PACE computer system, there is a lack of financial recognition of the true value a quality Plan Manager can bring to people with disabilities.
In the past year alone, Plan Managers have faced an undeniably difficult period of uncertainty and persecution. The NDIS Review recommended stewardship of the role in favour of an electronic payments system, leaving the future of hundreds of small businesses and thousands of workers in a state of uncertainty. More recently, Plan Managers have become the government and media target of a scaremongering campaign around NDIS fraud, with media reports rife with misinformation.
The increasing number of Participants choosing Plan Management is an indicator of the level of flexibility and support Plan Managers can provide. Between June 2020 and March 2024, the percentage of Plan-Managed Participants grew from 44% to 63%. Meanwhile, the growth in the number of active Plan Managers has not kept pace. Plan Managers are managing increasing workloads while supporting more Participants, often dedicating unpaid time to continue to provide essential support.
The NDIA transition to the new PACE system has them straddling two systems at once. With this transition comes additional unpaid training, teething problems and administration time, as well as changes to business processes. In addition, there may also be additional support required for Participants and their Carers to assist in navigating the changes. All of this has been completed without any additional recognition or reimbursement for Plan Managers' precious time.
What is the true cost?
Most Plan Managers are small business operators, and with business costs such as services and insurance rising at some of the highest rates in over a decade, the lack of fee increase will be felt now more than ever. The public sector has received an average wage increase of 2.3% a year over the past 5 years. We've run the numbers to show where Plan Managers fees should be currently if they'd received this basic courtesy.
The true costs to Plan Management businesses are glaringly obvious. Adjusting fees to include the high costs of inflation shows the backward steps in real reimbursement to the tune of almost $6 per participant per month. While in this example of a small Plan Manager with 100 Participants they're $7,000 worse off this past year, that loss becomes the equivalent of a full time employee wage for medium-sized Plan Managers. The results are even more glaring when examining where fees should be positioned if regular increases had been delivered in line with public sector wage growth.
As Plan Managers grapple with these challenging circumstances, it is clear that maintaining the current fee structure is unsustainable. Without an adjustment to reflect the true costs of providing quality support, the sector risks losing dedicated professionals who play a vital role in the lives of people with disabilities. It is imperative that the value of Plan Managers is recognised, not only through policy but also through fair and equitable financial remuneration. Only then can we ensure the sustainability of Plan Management and the continuity of support as the NDIS transitions through its biggest reforms since inception.
Plan Managers Advocacy Group
Plan Managers are an essential and valuable role within the NDIS, providing financial oversight for billions of dollars of taxpayers money, and relieving the administrative burden of over 400,000 Participants in managing their plan funds. However, their livelihoods are being undervalued and belittled by government, the NDIA, and the NDIS Review.
Plan Managers Advocacy Group was established as a collective effort to amplify the voices of plan managers and their supporters, advocating for policies that support the sustainability and integrity of NDIS plan management. It is led by Angela Vithoulkas, small business advocate and Non-executive director of Credability Systems. Angela has vowed to help plan managers petition government for not only the future of their small businesses, but for 63% of Participants who will lose their choice and control if Plan Managers are wiped out by the government.
Find out more and join us today: www.credsys.com.au/advocacy