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ACC Minister Matt Doocey last week announced an increase in levies and an independent review of the organisation, citing declining rehabilitation rates and increasing costs.
The earners and business levy will increase by up to five per cent a year for three years, and the motor vehicle owner levy will increase by five per cent, plus inflation adjustment, per year for three years.
“I am concerned that ACC’s performance has been declining for a decade. Rehabilitation rates are down, weekly compensation costs are up and average costs per claim are up,’ Doocey said.
“This review will have a particular focus on claims management. It will look at whether ACC has the right interventions and settings in place to support accident claimants to return to independence as quickly as possible.
“I know that many Kiwis are doing it tough. The staging of the increase in ACC levies reflects this.”
ACC chief executive Megan Main acknowledged that more people were receiving weekly compensation and remaining on the scheme for a longer period with non-serious injuries. Combined with rehabilitation and care service cost increases, Main said the scheme’s funding and levies left the organisation with a $2 billion annual shortfall.
“Each year ACC spends $7 billion on health care and weekly compensation to support the two million injury claims we receive,” she said. “Health and social insurance schemes internationally are facing similar challenges in balancing scheme boundaries, rising healthcare costs and funding.
“We hope any findings [from the independent review] will further help us improve our rehabilitation performance and assist us in ensuring the long-term sustainability of the ACC scheme.”
