ACC saves $177 million this year
Ministers are trumpeting a $177 million improvement in accident compensation performance over the past year.
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Ministers are trumpeting a $177 million improvement in accident compensation performance over the past year.
The improvement is in the one part of the scheme which is paid for by the taxpayer and not out of levies – the non-earners account, which covers injuries for children, superannuitants beneficiaries and anyone else not in the workforce.
The improvement appears mostly due to better rehabilitation rates, said Minister for Accident Compensation Nick Smith.
“The 70-day [rehabilitation] rate deteriorated from 73% to 68% in the five years prior to 2009, but has consistently improved and is now back at 71%,” he said.
“Every 1% improvement in rehabilitation rates reduces liabilities by around $500 million.”
The $177 million saved this year would be re-prioritized into other spending, Finance Minister Bill English said.
Rob Hosking
Tue, 10 May 2011
Tue, 10 May 2011
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ACC saves $177 million this year
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