Executive summary
On behalf of the Minister for ACC, the Ministry of Business, Innovation & Employment is consulting on the Minister’s proposal to increase the amounts, prescribed by regulation, that ACC is liable to pay towards the cost of rehabilitation. These payment rates apply where ACC does not have contracts with treatment providers, and includes rates for consultations, treatments, imaging and devices.
On this page
When ACC claimants seek treatment from treatment providers who receive regulated payments, the claimant usually has to pay a co-payment to cover the difference between what the provider charges and the payment rate. When the treatment provider’s costs rise, the co-payment charged to the claimant is likely to increase unless the payment rate also rises. Increased co-payments may deter claimants from seeking or completing a course of treatment.
The proposed increase in regulated rates follows a review by ACC that assessed cost pressures in the health sector. Various options to address the cost pressures were developed and these have been assessed against the following policy objectives:
- Claimants have access to treatment, meaning co-payments should be affordable
- Costs to ACC are sustainable, affordable and predictable (gradual increases)
- Payments are not too dissimilar between the health and ACC systems
The review also provides an opportunity to make other changes to payments rates to better meet the needs of stakeholders.
The ACC review was delayed, at various stages, by COVID-19 and undertaking more detailed work to tailor the increases to the wage movements applying to different occupational groups in the health sector.
Our proposals are those recommended from ACC’s review, and we invite feedback on them from any stakeholders who may be affected, including treatment providers and population groups who have difficulty in accessing treatment. Specific questions on which we seek feedback are in sections 3 and 4 of the document (pages 14-18).
Increase in treatment payment rates
We propose that treatment payment rates be increased according to the categories in Table 1 below:
Table 1: Proposed increases to treatment rates
| Treatment provider type | Proposed increase to treatment rate |
|---|---|
| Counsellors | 9.36% |
| Dentists | 5.70% |
| Hyperbaric Oxygen Treatment | 5.70% |
| Combined Nurses and Medical Practitioners | 4.60% |
| Medical Practitioners | 5.70% |
| Nurses | 7.85% |
| Radiologists | 5.70% |
| Specialists | 5.70% |
| Specified treatment providers | 9.36% |
| Audiology | 0.00% |
The proposed increases are expected to apply from 1 December 2022 until the next review takes effect, which is likely to be between one year and 18 months later.
Proposal for a Nurse Practitioner and Registered Nurse combined rate
We also propose to introduce a new combined treatment rate for a consultation involving both a nurse practitioner and registered nurse. This is similar to the current combined treatment rate for a general practitioner and registered nurse.
Process and timeline
The anticipated timeline for the consultation process is set out below.
| Date | Process |
|---|---|
| 16 August 2022 | Submissions open |
| 19 September 2022 | Submissions close |
| Late October 2022 | Submissions and summary with responses published |
| Late 2022 | Final recommendations to Cabinet |
| Early 2023 | New Regulations drafted |
| 1 April 2023 | New rates in force |