Matt Doocey: ACC Minister on increasing levies and new independent review

The ACC Minister has announced a independent review into ACC because of concerns about its performance. 

Matt Doocey says rehabilitation rates are down and weekly compensation costs and average costs per claim were up.

“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".

It comes as ACC announces levies will be on the rise from next year with those on the median wage of $70,000 set to pay $140 extra in 3 years time.

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Episode Transcript

Speaker 1 (00:00):
So the ACC Minister has announced an independent review into
ACC because of concerns about its performance. Matt Doocy says,
rehabilitation rates that down, weekly compensation costs and average cost
per claim we're up. That's not efficient. Not only that
there was a seven point two billion dollar deficit, which
is a worry. We were in surpace a couple of
years ago. Matt Doocy joins, you now gimody to you, Matt,

(00:22):
that's the mood Andrew, what are you going to look into?

Speaker 2 (00:26):
Basically, what I want to do from the external review
it will be conducted within six months, is to seek
assurance that ACC has the right settings and interventions in
place to turn around their declining rehabilitation rates and to
address the expansion of the number of people on long term.

Speaker 1 (00:46):
So is the review because you don't know why their
numbers or their heading of targets has fallen. You don't
know why they're not rehabilitating better, and you don't know
why it's costing.

Speaker 2 (00:57):
Well, when we look at the efficit a SEC posted
in the last year about seven point two billion dollars,
it's about a third a third and a third of
that has increased costs through inflation and treatment costs. A
third of it is to do with court rulings that
have opened up entitlements, and a third of that is
the declining rehabilitation rates. Now ACC is recently restructured. They've

(01:22):
deployed an extra two hundred and fifty people on the
front line, moved from a many to one case management
approach to narrow one to one. So they're putting their
systems and interventions in place. But I want to get
experts in. They've got experience of accellent compensation schemes to
give me assurance that every lever's been pulled to ensure

(01:42):
we turn those declining reable session rates around.

Speaker 1 (01:45):
Okay, and we'll good luck with that. Meanwhile, of course,
the deficit means that you've announced increased levees leavies that
are increasing by up to five percent a year for
three years. Do you think if you have a successful
review you could actually reverse those increasing levees, you could
bring the cost down.

Speaker 2 (02:01):
Well. The advice I've got is that we need to
do both at the moment is increase levees and also
turn around the declining rehabilitation rates. What we're looking at
the long term ten year horizon as Well, but I've
been very clear with ACC. I don't want to see
the increasing of ACC levees just been used as a
default to address their deficit. They need to lift their performance.

(02:25):
The advice I've got is even a one percent improvement
and rehabilitation rates will have a significant impact in the
long term on their deficit. And that's why we really
want to drive up those rehabilitation rates.

Speaker 1 (02:37):
Well, it's the deficit is mind blowing, an eye watering
at seven point two more. So anything you can do, Matt,
go ahead and do it. It is now seven minutes
to six. And by the way, levees for evs are
going to go up about one hundred bucks, whereas levees
for petrol vehicles going to go up about fifty. Now,
why are the evs more dangerous? Apparently it's because the

(02:58):
evs don't pay the petrol tax. But is that necessarily fair?
He says as an EV owner.

Speaker 2 (03:04):
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