6 December 2016
NDIS – Self Managed v Agency Managed – By Interchange Australia Consultant, Rebecca Lackenby
The NDIS has heralded greater choice and control for participants as to which provider they will engage to provide their services. Aside from choosing a provider, participants now have the choice as to how their funds are managed. In the “new world” there are three possible fund management options.
1. NDIA – The agency holds the participants funding and the service provider claims from the NDIA and the participant receives regular statements.
2. Self-Managed/Plan nominee managed – The participant or their plan nominee manages the funds. They hold the funds themselves and are invoiced directly by service providers. People can also choose to self-manage part of their funds.
3. Registered Plan Management Provider – The participant is allocated funds for plan management in their NDIS support plan. The service provider invoices the nominated Plan Management Provider.
This concept is not entirely new as previous individually funded package have had the option of self-managing also and brokerage was common for the provider that held the funding.
So what option is right for you?
With self-managed funds you are responsible for:
• Requesting invoices for the services you receive.
• Paying invoices on time.
• You are able to choose both registered and non-registered NDIS providers to provide your supports.
• You are responsible for keeping good records such as receipts of the services you have claimed for and
• You also have the option of employing your own staff.
Agency Managed or Plan Managed Funds:
• The service provider claims directly to the agency or plan manager
• The NDIA or plan manager are responsible for payment to the service provider
• You can only access service from approved providers
• You receive regular statements from your service providers.
These options will be discussed with you at your NDIS planning meeting and you have the option to self-manage part of your funds. If you do choose to self-manage, the NDIS will assess your ability to manage (e.g. misuse of funds or late payment). You also have the option to change management models at a later date if required.
For more information about the various fund management options, check out the NDIS website. www.ndis.org
To learn more about the services Interchange Australia can provide under the NDIS, please call our friendly and experienced team of Consultants on 1300 112 334.