When you receive your NDIS plan, one of the most important decisions you’ll make is how to manage your funding. The two most common options are Plan-Managed and Agency-Managed (also known as NDIA-Managed). The choice you make has a big impact on your flexibility, choice of providers, and the amount of admin you have to do.
This can be a confusing decision, filled with jargon. This guide will break it down in simple terms, using real-world feedback to help you understand the pros and cons of each and make the best choice for your situation.
What is the Main Difference Between Plan-Managed and Agency-Managed?
The key difference comes down to choice and control.
- Agency-Managed means the National Disability Insurance Agency (NDIA) holds your funds and pays your providers directly. It’s simpler, but you can only use NDIS-registered providers.
- Plan-Managed means you have a ‘Plan Manager’ – a financial intermediary who holds your funds and pays your invoices for you. It gives you more choice, including the ability to use non-registered providers, without the full administrative burden of self-managing.
A Head-to-Head Comparison
Let’s break down the key aspects of each option.
1. Choice of Providers
- Plan-Managed: This is the biggest advantage. You can use any provider, whether they are registered with the NDIS or not. This opens up a huge range of options, from local sole-trader therapists to specialised services that may not be NDIS-registered.
- Agency-Managed: You can only use NDIS-registered providers. This provides a level of safety and vetting, but significantly limits your choice.
2. Budget Flexibility
- Plan-Managed: You have more flexibility. You can negotiate prices with non-registered providers and have more say in how your budget is spent, as long as it aligns with your plan goals.
- Agency-Managed: The NDIA pays providers directly according to the set NDIS price guide. There is no room for negotiation.
3. Administrative Workload
- Plan-Managed: The workload is low. Your only job is to approve invoices. Your plan manager takes care of paying the bills, tracking your spending, and handling the financial reporting.
- Agency-Managed: The workload is virtually zero for you. The NDIA handles all payments and financial tracking behind the scenes.
4. Who is it Best For?
- Plan-Managed: Is ideal for people who want the choice and flexibility to use a wider range of providers, but don’t want the hassle of managing their own funds.
- Agency-Managed: Is best for people who are new to the NDIS, want the simplest possible option, and are happy with the choices available from NDIS-registered providers.
At a Glance: Plan-Managed vs. Agency-Managed
| Feature | Plan-Managed | Agency-Managed (NDIA-Managed) |
|---|---|---|
| Provider Choice | Excellent: Use both registered and non-registered providers. | Limited: Can only use NDIS-registered providers. |
| Control & Flexibility | High: More control over your budget and how you use it. | Low: The NDIA manages payments for you. |
| Admin Effort | Low: Your Plan Manager handles invoices and payments. | Very Low: The NDIA handles everything. |
| Best For | People who want more choice and control without the full admin of self-management. | People who want the simplest option and are happy to use only registered providers. |
The official NDIS website provides a high-level overview of these options.
Frequently Asked Questions
We’ve explored the forums to find the real-world questions and “I wish I knew” moments people share.
Can I use my local therapist if they aren’t NDIS-registered?
Only if you are Plan-Managed or Self-Managed. If you are Agency-Managed, you cannot use any provider who is not registered with the NDIS. This is one of the most common reasons people choose Plan Management.
Is having a Plan Manager expensive?
No. The funding for a Plan Manager is a specific item that is added to your NDIS plan. It does not come out of your other support budgets. It is, in effect, a free service designed to help you.
I’m worried about managing invoices. Is Plan Management hard?
No. Most plan managers have a very simple system. When you receive an invoice from a provider, you simply forward it to your plan manager (often by email) for them to pay. That’s all the “management” you have to do.
Why would anyone choose the more restrictive Agency-Managed option?
Simplicity and security. Some people find the NDIS overwhelming at first and prefer to have the NDIA handle everything. It removes all financial admin and guarantees that providers are vetted by the NDIS, which can provide peace of mind.
Can I switch from Agency-Managed to Plan-Managed later?
Yes, absolutely. You are never locked in. You can request to change how your funds are managed at any time, usually at your next plan review or by requesting a plan variation. Many people start with Agency-Managed and then move to Plan-Managed once they feel more confident.
Choosing how to manage your NDIS funds is a personal decision. The Agency-Managed path offers simplicity, while the Plan-Managed path offers a powerful combination of choice and support. Neither choice is permanent; you can request to change how your plan is managed at any time.
Understanding your options is the first step to getting the most out of your NDIS plan.
If you have questions about plan management or need help understanding your NDIS plan, contact MD Home Care today. Our team can provide clarity and support.