Reviewing regulated ACC payments for treatment
MBIE, in conjunction with ACC, conducts a biennial review of the Cost of Treatment Regulations.
Objectives of the review
The policy objectives of the regular review of the Cost of Treatment Regulations are to ensure:
- entitlements are sufficient to make treatment affordable for claimants
- costs to ACC are affordable, sustainable and consistent (e.g. through gradual increases)
- payments are not too dissimilar across the health and ACC systems
Initial review is conducted by ACC
ACC is required under section 324A of the Accident Compensation Act 2001 to conduct a biennial review of the Cost of Treatment Regulations.
The review assesses if any adjustments to treatment payments are required to take account of changes in the costs of rehabilitation. Previously, the review was conducted on a yearly basis. A biennial cycle was put in place to allow ACC to better understand impacts of previous rate increases, in addition to collecting regular information on the cost pressures impacting providers.
ACC uses a retrospective approach to assess how market activity has affected the cost of treatment and rehabilitation. ACC also works with the sector to identify areas for improvement as part of the decision-making process. If you would like to share your suggestions on what could be improved, please contact ACC.
Once ACC has concluded its review, it must provide a report to the Minister for ACC giving the results of the review and its recommendations. The report is required to be delivered by 1 December in the year the review is conducted.
Consultation is led by MBIE and supported by ACC
The Minister for ACC considers ACC’s review and consults with the sector on the recommendations following Cabinet approval to consult. MBIE undertakes the consultation for the Minister with support from ACC.
A consultation document is published on our website outlining the proposed changes to the regulations and inviting written submissions. The submission period runs for around four weeks. If you have any queries about the consultation process, please contact MBIE.
After the submission period closes, MBIE reviews and summarises the submissions before providing final recommendations to the Minister along with a regulatory impact analysis. The Minister then provides recommendations to Cabinet for its approval.
The Government’s law drafters, the Parliamentary Counsel Office, draft the amending regulations. The Cabinet Legislation Committee authorises the submission of regulations to the Executive Council for its approval.
The 2018 review
Submissions closed on the 2018 review on 13 December 2019.
The 2017 review
Read more about the amendments to the regulations resulting from the review(external link) — New Zealand Legislation website