Choice in ACC to improve safety, rehabilitation & efficiency

ACC Minister Nick Smith today released a Government discussion document on reforms to ACC saying increasing choice in workplace accident compensation will help improve safety, rehabilitation and efficiency.

"These pragmatic proposals are about putting employers at the centre of workplace injury management. We are proposing giving employers who want it a choice of workplace accident cover for their workers from either ACC or a private insurer," Dr Smith said.

"We're also considering options for extending the Accredited Employer Programme. The Government is committed to retaining our unique 24/7 no-fault system and workers' entitlements but wants to improve the incentives for safer workplaces, better rehabilitation and greater cost effectiveness."

Key details in the proposals to be consulted on are:

* extending the Accredited Employer Programme (AEP) from April 2012

* allowing choice of workplace insurance cover from October 2012

* requiring at least existing minimum worker cover and entitlements

* insurers being required to meet minimum prudential requirements, and in the event of an insurer failing, cost met by levy on all workplace insurers

* a market regulator to monitor and enforce employer/insurance compliance

* a single claim lodgement unit to minimise administration for health sector

* minimum prices and conditions for treatment service providers like GPs

* easily accessible and independent dispute resolution service

* contributions from all insurers for acute hospital/ambulance care

"The evidence to support these reforms is strong. The AEP is delivering 12% fewer claims and 15% lower costs. We know from the experience of accredited employers such as New Zealand Post, KiwiRail and the New Zealand Fire Service that improvements come from stronger financial incentives and involvement in rehabilitation. These reforms are about getting business to view ACC not as a tax but as a manageable cost that can be reduced with improved safety," Dr Smith said.

"This policy is simply about choice. Employers and the self-employed will be able to continue with ACC or, if they wish, purchase insurance from another provider.

"These are not radical reforms. A mix of public and private provision of workplace accident insurance is the most common model used internationally. We have many sectors in the New Zealand economy where public and private provision sit alongside each other helping drive innovation and efficiency.

"The pressure of competition will make ACC more resilient and efficient. The corporation has gone through repeated cycles of cost blowouts over its 37-year history and needs the constant pressure of choice to keep it on its toes.

"We are advancing these reforms in a careful and considered way. The introduction of experience rating on 1 April this year was a first step towards pricing for better incentives for workplace safety. The separation of Dispute Resolution Services Ltd from ACC on 1 July improves the integrity of managing claimant complaints.

"The Government will not make a final decision on extending choice in ACC until we have refined the important detail through this consultation and received an electoral mandate from the public. Our goal is durable reforms that give New Zealanders safer workplaces, better rehabilitation and more efficient accident compensation."

The discussion document is available at:

www.dol.govt.nz

ENDS

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