ACC Earners Levy Skyrockets

[Wayne]

ACCC is an effective accident insurance scheme at an affordable price. What needs to happen is remove the social side of it (the bits that were added most recently like stress etc) and get back to accident.

[Austrokiwi]

Let's get this straight, ACC is not health insurance. It is accident insurance.
It is a grossly unfair system that needs to be wrapped up.
Period.

Nice correction and I agree its unfair and needs to be ended.

ACCC is an effective accident insurance scheme at an affordable price. What needs to happen is remove the social side of it (the bits that were added most recently like stress etc) and get back to accident.

Reallly reading the media reports about the amount of money ACC spends defending its decisions not to pay out does suggest that it is either effective or affordable( ie: paying for nothing is expensive no matter how little you pay). Given that even medical experts have felt it necessary to challenge ACCs dubious "pre exisiting conditions" refusals it seems to me the management of ACC are just trying to limit all claims.

[Perry]

Why is it being increased faster than the inflation rate?
(Because that "official" rate is a complete lie?)

Well, there's been lots of debate on the forums
about that. Mostly as part of 'endorsing' a CGT.
Generally, I'd agree that the government CPI is
hugely inaccurate, but not quite to the point of
calling it a complete lie. Maybe about 50-60%
would be the lie of things?
.

[PC]

I'm paying 3x the size of my basic private health insurance premium for ACC.

What options does a poor working boy have to reduce this onerous theft from his over taxed monthly stipend?

[Wayne]

none really

[flyernzl]

Now we have ACC being investigated by the Serious Fraud Office.

Mind you, given the history of the SFO, that's not much of a threat to them.

[Perry]

ACC Posts $2.1 Billion Surplus
James Weir
22/10/2014

ACC's net surplus of $2.1 billion is almost $300 million ahead of
budget, allowing significant levy cuts in 2015, the no-fault insurer
says. The annual report shows ACC received $4.7b in levies in the year
and spent $2.96b on claims. The levies charged were almost unchanged
from 2013, but higher than the $4.6b budgeted. Claims paid were up
from $2.6b last year, although only slightly ahead of budget.

The surplus last year was $4.9b, which led to calls from the Labour
opposition for immediate levy cuts at the state-owned insurer. ACC has
turned its finances around since posting a $4.8b loss in 2009. A
couple of months ago, the Government confirmed plans to cut motorists'
ACC levies next year by $135 on average, a total saving of about $480m
a year - $180m less than the $658m recommended by ACC as part of its
annual levy consultation process this year.

Other PT threads on ACC's variables fortunes.

http://www.propertytalk.com/forum/showthread.php?33740-ACC-levies

http://www.propertytalk.com/forum/showthread.php?23558-ACC-Levy-Changes

[Norwest]

ACC Posts $2.1 Billion Surplus

Yet ACC continues to invest in shares on the NZX among other things, why not give the money back to the people rather than invest in the sharemarket?

[Davo36]

I guess they are investing to have a pile of money for future claims?

[Wayne]

So the principle of ACC changed from funding future liability of current claims out of furutre income to funding it from current income.
ie if you have an accident now that will cost $2000/yr for the next 10yrs then they should factor the $20000 cost into this years costs.
If they stopped collecting ACC premiums now they should be have enough money in the kitty to keep paying out their existing claims.