Mike's Minute: The ACC system still doesn't work

If you didn’t know, ACC is in some fiscal trouble again.

This isn't new. ACC has been in trouble for years.

Last year, 1.6 million of us managed to do something to ourselves which involved money - $4.5 billion dollars worth. That's just on rehab.

The total is $7 billion paid out.

It's an astonishing amount of money - and the problem is what we pay in doesn’t cover what goes out.

ACC run a scheme whereby money is invested in the hope the returns offset the bills.

I personally pay thousands a year and have done for decades. To this day I have never claimed a cent.

The original idea was a no-faults scheme, as opposed to a U.S style scheme where we lay blame and get lawyers.

16,000 people did something to themselves in the garden last year and claimed millions.

Previously physio has been the issue. When does physio stop? Who knows, but let's have another three sessions while we decide.

Go to any doctor with anything that hurts and the first thing they do is start tapping away on the ACC claim.

Like most of these altruistic ideas somewhere along the way we lost the plot.

It might be that we need to tidy this up. Foolishly perhaps, I have always seen ACC as work related. If you injure yourself and can't work, this is its value.

Not if you cut your finger pruning hydrangeas.

We had a family member who was off work for months, I think too many months. They wouldn’t let him back even though he wanted to go back. But they kept saying "oh, just in case".

I wonder if there is too much "just in case".

The risk payments work to a degree. 40 percent of payouts are in construction, manufacturing, agriculture and fishing. I pay as a journalist, even though I'm not a journalist, but they can't work out what I am or how to charge me.

Part of a journalist's risk is being in a war zone. I can tell you journalists generally in New Zealand don’t go to war zones.

Anyway, 1.6 million people with two million claims and all up it cost $7 billion.

In barely over two years basically every single one of us makes a claim.

That's not right, it's not normal and it's why they can't pay their way.

The system doesn’t work.

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Episode Transcript

Speaker 1 (00:00):
ACC if you didn't know US in some fiscal trouble. Again,
this isn't new. ACC has been in trouble for many,
many years. Last year, one point six million of us
managed to do something to ourselves which involved money four
and a half billion dollars worth. That's just rehab by
the way, four and a half billion. The total bill
is seven billion dollars. It's an astonishing amount of money.
And the problem is what we pay doesn't cover what

(00:21):
goes out. ACC run a scheme whereby money is invested
in the hope that returns offset the bills. I personally
pay thousands of dollars a year and have done so
for decades to this day. I've never claimed ascent. The
original idea was a no fault scheme. This as opposed
to a US style scheme whereby we lay blame and
get lawyers. Sixteen thousand people did something to themselves in
the garden last year and claimed millions. Previously, physio has

(00:43):
been an issue where does physio start? And stoppell? Who
would know? But let's have another three sessions while we
decide shall we go to any doctor with anything that
hurts in the first thing they do is start tapping
away on an acc claim. Like most of these altruistic ideas,
somewhere along the way we lost the plot. It might
be we need to tidy this whole thing up foolishly. Perhaps.
I've always seen a SEC as work related. If you

(01:05):
injure yourself and can't work, that's its value, not if
you cut your finger pruning hydrangers. We had a family
member who was off work for months, I think too
many months. They wouldn't let him back. I mean, he
wanted to go back, but they kept saying, oh, just
in case. I wonder if there's too much just in
case going on the risk payments, they seem to work
to a degree. I mean forty percent of the payouts

(01:26):
are in construction, manufacturing, agriculture, fishing, as sort of place
as you'd expect. I pay as a journalist, even though
I'm not a journalist, but they can't work out what
I am or how to charge me. And part of
that journalist. By the way, the premium is the risk
of going to a war zone. I can tell you
journalists generally in New Zealand don't go to war zones anyway.
One point six million, with two million claims and an

(01:48):
all up cost of seven billion dollars in barely over
two years. Do the maths extrapolate them out and barely
over two years, Basically every single one of us is
going to claim that's not right, it's not normal, and
it's why they can't pay their way. The cystem doesn't work.
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