ACC must clarify plans for the seriously injured
Wednesday, 7 October 2009, 3:51 pm
Press Release: New Zealand Labour Party
7 October 2009 Media Statement
ACC must clarify plans for the seriously injured
ACC needs to spell out exactly what changes are being introduced to reduce costs associated with caring for seriously injured New Zealanders, says Labour’s ACC spokesperson David Parker.
ACC is reported today to be seeking to reduce the cost of its long-term claims by $2 billion and has signalled a number of approaches will be taken to do this.
“Labour supports ACC efforts to improve case management of vocational rehabilitation for injured people, and the previous Labour-led government had a number of initiatives underway to achieve this,” David Parker says.
“Labour does not oppose the use of private providers, and did so itself, to case-manage rehabilitation and encourage people, where possible, back into the workforce as soon as is appropriate.
“I would be very concerned if cutting people off ACC becomes a major component of way private providers are paid. It is appropriate to focus more resource on better rehabilitation. This can improve the outcome for those suffering injuries and reduce long-term costs, if done properly.
“But it can also be used as a way to kick people off cover prematurely, as occurred in the late 1990s. We will be monitoring this and checking the terms of the contracts under which the private providers are paid,” says David Parker.
“What needs immediate clarification from ACC however is what is happening around the wages paid to ACC carers of those with serious injuries – and the amount of help injured people will get. It has been indicated that ACC is clamping down on home support entitlements – including those paid to help care for injured children,” David Parker says.
“ACC is reported saying it has taken steps to cut costs in the area of home support for ACC claimants and has also raised concerns about carers’ wages.
“Carers contracted to provide home support for injured people are paid low wages, despite an increase provided by the Labour Government in last year’s Budget. The wage rise recognised the difficulties ACC was experiencing in attracting and retaining carers to do what can be a very difficult job.
“ACC must spell out exactly what home help entitlements it is reducing access to. It claims it has previously provided more support than it was required to. This is becoming a common refrain for ACC and should be scrutinised, lest it really means vulnerable, injured people will have to battle for basic care.”
“Any erosion in hours of support will also be hard on families struggling to help care for injured family members at home. Current support is adequate, not extravagant,” David Parker says.
ENDS
Private contractors to manage ACC claimants
ACC is calling in private case managers to deal with up to 1500 claimants as it moves to cut $2 billion from its long-term claims bill.
The state accident insurer yesterday confirmed details in leaked emails showing management faced a "challenging target" of cutting growth in the full cost of existing claims.
ACC general manager Denise Cosgrove said the $2 billion target was set by the board and was part of a push to curb the liability, estimated at $21 billion, through faster rehabilitation of those who have been receiving compensation for lost wages long term.
There would be no impact on access to medical treatment, and it did not reflect any change to entitlements.
The long-term liability is an estimate of the full-life costs of helping existing claimants.
Cosgrove said the move to bring in private contractors was aimed at cutting the cost of compensation for lost wages.
Research showed those on the scheme for five years would probably stay on it till retirement.
They often found it hard to get back to work, perhaps because they had lost confidence, had depression or suffered from alcohol and drug use.
If ACC could get them back to work before five years it would have a significant impact on the liability.
That could involve help with CVs, preparation for interviews and developing work skills.
Under the plan, four private firms would be brought in to manage up to 1500 long-term claimants out of the 12,000 on ACC's books. These did not include the seriously injured who would never return to work.
The work could have been done in-house but it would have taken time to hire and train extra staff, she said.
The private firms – which have worked with big self-insurers such as Fonterra and Telecom – had the right experience, and the economic downturn had left them with spare capacity.
Labour ACC spokesman David Parker said he was "implacably opposed to privatising the insurance function of ACC".
"In my experience the adequacy of care ... is just good enough, not opulent," Parker said.
ACC Futures Coalition
Department 8 April 2009
ACC is a public good – Futures Coalition
ACC must be kept as a public good was the message from the ACC Futures Coalition at its launch this morning in Wellington. The Coalition, which is comprised of health providers, ACC consumers and unions, has been formed to provide balance and information to the debate about the future of ACC. Coalition spokesperson and ACC advocate Hazel Armstrong says the iconic compensation scheme is vital to New Zealand and New Zealanders.
“When it was introduced ACC was a groundbreaking scheme and it is still a world-leading model that delivers real benefits to hundreds of thousands of New Zealanders at a cost that is far smaller than other systems in other countries. “Despite this fact the compensation system is under attack from a government determined to turn it into a political football and open it to competition.
“The ACC Futures Coalition aims to build cross-party support for retaining the status of ACC as a publicly-owned single provider because we want to maintain and improve the provision of injury prevention, treatment, rehabilitation and no fault compensation social insurance system that benefits all New Zealanders."
Today’s launch marks the start of the Coalition’s campaign, with a call to send an open letter to Hon Dr Nick Smith Minister of ACC and all the members of parliament to commit to the retention of ACC as sole provider of accident compensation in New Zealand.
link to open letter is below
links to speeches
ACC CEO Meeting
Press Articles and Info
Department of Labour report, Vocational Independence outcomes for ACC Claimants, published by the Department of Labour and written by Hazel Armstrong and Rob Laurs.
Vocational Rehab report completed February 2007. (These files will take time to download)
Pain And The Law (Read what we are up against when trying to prove injury related chronic pain)
