What Do Plan Managers Do? 6 Common Myths and Misconceptions

Plan managers are experts in NDIS spend tracking and financial oversight, making them an important part of what the NDIA refers to as a participant’s ‘circle of supports’.

But that doesn’t mean it’s immediately obvious what plan managers can and can’t do for their participant clients.

To help bring clarity to this situation, this article lists 6 common myths or misconceptions that many people get wrong about plan managers, but let’s start by highlighting the basic things they can do.

Key Responsibilities of a Plan Manager:

• Help participants understand their Plan, specifically focusing on what funding they can spend on supports
• Work with the NDIA to pay support providers
• Provide the tools participants need to monitor how much their spending and track their budgets
• Advise on how to maximise the value participants gain from their NDIS funding

With that in mind, now here’s a list of the things that people often get wrong about plan managers.

6 Common Myths and Misconceptions About Plan Management

1. Plan Managers and NDIS Planners Are the Same

For anyone who’s new to the NDIS, this is a common mistake and pretty understandable given how similar the two roles sound, but the truth is plan managers and NDIA planners are very different in terms of how they operate and what they can offer participants.

The situation isn’t made clearer by the fact that NDIA planners are regularly referred to simply as “planners”.

It’s important to note that NDIA planners work to develop and deliver NDIS Plans according to the needs of the participant and have the power to make decisions about what gets funded under a Plan.

On the other hand, plan managers are independent financial specialists who work to help participants manage the flow of funds from the NDIS to their support providers.

2. Plan Managers Decide What Is Reasonable and Necessary

Plan Managers should have a thorough understanding of how the NDIS works and what decisions are likely to be made as to what constitutes reasonable and necessary, but they don’t make decisions themselves.

Plan management businesses are there to assist participants, not “call the shots”.

Ultimately, it’s the participants or their nominated representatives that need to ensure the supports they’re using are both reasonable and necessary according to the guidelines set out by the NDIA.

The reality is that this is usually easier said than done, and the NDIS Review board has said it sees this is an area that needs improvement.

Generally, there are 3 key aspects of a support that will allow it to be funded by an NDIS Plan:

• It’s specifically required to meet the participant’s unique needs and goals
• It’s not something that anyone would usually purchase as part of their daily life
• An NDIS planner or LAC has specifically approved the support to be included in the Plan

3. Plan Managers Can Decide Which Support Providers a Participant Uses

A Plan Manager can provide services such as advising on how to find or engage with supports, but they can’t dictate which ones a participant ends up choosing.

This is a key aspect of the NDIS’s aim to make sure participants have ‘choice and control’ over their supports.

Plan managers are always ready to offer advice on how participants can manage their budgets and get the best value from their funding, but they’ll never force them into a decision.

The thing to keep in mind here is that, for NDIA-managed participants, the support providers they have access to are limited to those that are registered with the NDIA.

4. Plan Managers Have a Responsibility to Make Sure NDIS Funds Are Available

While plan managers offer the tools and advice to help participants manage their funds, understand and track their budgets, they can’t guarantee funding.

Participants need to work with their providers, support coordinators and plan managers to manage their Plan. After all, it’s the participant’s responsibility to avoid overspending.

Plan managers regularly see situations where supports have been delivered before invoices have been lodged and approved in our systems, and this means plan managers won’t always have the most up-to-date view of a participant’s spending.

The best thing a participant can do to avoid overspending is work with all support providers to develop a complete, itemised schedule of supports that includes all fees and charges before they finalise any agreements.

5. Plan Managers Pay for Any Difference in Costs That Result from Overspending

This would be like asking an accountant or bookkeeper to pay when their client has no money. It just doesn’t happen!

Same as the above misconception, this implies the responsibility lies with plan managers to pay for a participant’s budgeting issues. This isn’t the case.

While plan managers work to pay providers as quickly as possible, they can only do so when funding is approved by the NDIA.

Whether it’s because allocated funding has run out or the support simply isn’t approved under the NDIS, the plan manager won’t be able to fill the gap and, unfortunately, the participant ends up having to foot the bill.

Similarly, the NDIA won’t necessarily pay for any difference in costs that result from overspending and assuming they will is only going to cause headaches.

For participants who want to avoid costly mistakes, there’s good reason to work out how your budgets will be spent down to the cent.

6. Plan Managers Can Advocate to the NDIA on Behalf of Their Participants

When something goes wrong with a participant’s NDIS funding, there are ways for participants to apply to have a decision reviewed by the NDIA, but that doesn’t mean their plan manager can act on their behalf.

If a participant thinks a mistake has occurred or they feel there’s another valid reason for the NDIA to make changes to their Plan’s funding, a plan manager can be an important resource to help them.

Plan managers can provide a full accounting of expenditure and even request invoice amendments from support providers, but we can’t act or make decisions without direction from the participant – again, it’s all about protecting their choice and control in how their funding is managed.

The Bottomline of Plan Management

Just like a bookkeeper or an accountant, a plan manager is a valuable adviser to their clients, with all the expertise and tools available to help them manage their NDIS funding and get their supports paid.

When it comes to choosing one plan manager over another, participants will consider things like the depth of the plan manager’s knowledge, the speed, accuracy and clarity of their responses, as well as how easy they are to work with.