What is plan-managed funding?
Plan-managed funding is an NDIS arrangement where a plan manager pays service providers on the participant's behalf, allowing access to both registered and unregistered providers of the participant's choice.
Under plan-managed funding, you nominate a plan manager to manage and pay your NDIS providers directly. This differs from self-managed funding (where you pay providers yourself) and agency-managed funding (where the NDIA handles payments). The plan manager processes invoices, keeps records, and ensures payments are made, removing that administrative burden from you.
A key advantage of plan-managed funding is flexibility in choosing providers. You can use registered NDIS providers or unregistered providers who meet your needs, as long as they are appropriate and their charges are reasonable. This opens access to local allied health practitioners, therapists, support workers, and specialists who may not be formally registered with the NDIS but offer services you value.
Plan managers are regulated and must comply with NDIS rules around spending and record-keeping. They charge a fee for their service, usually a percentage of your plan funding or a flat rate. This cost comes from your plan budget, so it is worth comparing plan managers in Perth to understand their fees and services before deciding whether plan-managed funding suits your situation.
Plan-managed funding suits people who want a balance between choice and convenience. You retain control over which providers you work with without managing invoices yourself, making it a middle-ground option for many NDIS participants.