ACC: National changes ready to roll

The ACC found it was rejecting too many elective surgery claimants. Photo / Thinkstock

Labour and Greens want privatisation moves halted

While the National Government is controversially seeking a mandate for its "mixed ownership model" for state-owned assets this election, it would also take victory this month as a green light for its partial privatisation plans for the ACC.

Last year ACC Minister Nick Smith confirmed the National Government would, in its second term, go ahead with plans to allow private insurers to compete with the ACC for a slice of the $1 billion a year workplace injury cover market which is almost completely handled by the corporation's Work Account.

Dr Smith has also confirmed his Government will consider allowing competition against the $1.5 billion a year Earners' Account which covers non workplace injuries and also the $1 billion a year Motor Vehicle Account.

These policies follow on from last year's "stocktake" of the scheme which National agreed to in return for coalition partner Act's support for changes to ACC legislation which Dr Smith said were necessary because the insurer was insolvent.

The stocktake found the ACC alternated between periods of "rapid and unaffordable expansion" of claims liabilities and periods of greater focus on claims management and rehabilitation.

Dr Smith says under Labour ACC's number of claims rose quickly and the scheme was becoming unsustainable. He argues that private competition will force the ACC to run a consistently tighter ship.

In the meantime, under his legislation some entitlements have been dropped and claimants report others have become more difficult to access.

Labour and the Greens argue the pendulum has swung too far and claims are being unfairly denied. Following the Herald's series last year, the ACC held an internal review and found it had been rejecting too many elective-surgery claimants and would improve its processes.

Labour's ACC spokesman Chris Hipkins said his party was committed to making ACC more receptive to claimants as "a comprehensive, universal and public" scheme and would halt or roll back National's move towards privatisation.

The Greens have a similar policy. Green ACC spokesman Kevin Hague says ACC under Dr Smith now has a "culture of disentitlement".

" ... we would be looking to wind back pretty much everything that was in the ACC Amendment Bill.

"We believe that was all about erosion of people's entitlements and was a betrayal of the scheme's original principals."

The Greens want to return to "pay as you go" funding. Mr Hipkins said Labour would continue with the current funding model as the scheme was now close to being fully funded.

Meanwhile, National has confirmed levies would be cut next year.

Labour argues National can only afford to cut the levies because it was charging too much.

The Maori Party says it has concerns that privatisation would see levies rise, "which would push the affordability of its protection out beyond the reach of our low income families, many of whom will be Maori and Pasifika".

Highlights

National
Allow private competition with the ACC in the Work Account, which covers workplace injuries. Considering extending further.

Labour
Would stop or reverse National's "privatisation" plans.

Greens
Oppose partial privatisation.

Act
Supports private competition plan.

Maori Party
Is "still considering its policy on ACC".

Mana
Opposes privatisation.

United Future
Supports competition in the provision of accident compensation services.