ACC is also suggesting upping the levies it collects from wage and salary earners to cover injuries suffered by workers outside of the workplace by between 4.3% and 4.8% a year over the next three years.
And, it’s proposing to hike the levies it collects from employers and self-employed people to cover injuries that happen in the workplace by between 4.3% and 4.8% a year over the next three years.
ACC receives almost two million new injury claims a year, and spends about $7 billion annually in medical treatment, rehabilitation support and compensation for loss of income.
“The levies we currently collect are lower than they need to be to cover the forecast cost of claims we expect each year. Any recommendations for levy increases are capped to smooth out the increase,” ACC chief executive Megan Main said.
“Despite our best efforts and in line with international trends, our client rehabilitation performance in the short-term has been declining.”
Members of the public have until October 9 to provide feedback on ACC’s proposals. From there, it will make recommendations to the Government, which will ultimately decide on how levies are changed.
Minister for ACC Matt Doocey said: “The Government’s expectation has been made clear to ACC that it must deliver greater value for the funds it receives.
“I am monitoring this very closely and will be ensuring ACC is improving its financial performance. It is my expectation ACC will look at existing costs within the scheme to ensure that any levy increase is absolutely justified before final decisions are made.
“I have also set clear expectations to ACC around improving rehabilitation performance by the end of the parliamentary term, and it is my expectation ACC will better use injury prevention as a lever to improve its performance.”
The consultation on levy rates is a requirement by law. ACC is also proposing to make other changes to the way the insurance scheme operates.
Jenée Tibshraeny is the Herald’s Wellington Business Editor, based in the parliamentary press gallery. She specialises in government and Reserve Bank policymaking, economics and banking.