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Who's Cooking The Books? or is a levy increase comming???

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Posted 27 September 2005 - 08:07 AM

Rising costs fuel $794m ACC deficit

MONDAY , 26 SEPTEMBER 2005


Rising medical costs and lower interest rates led to the Accident Compensation Corporation turning in a deficit of nearly $794 million for the year to June.

The result is a massive turnaround from last year when the state-owned accident insurer made an $876 million surplus, and came about despite record investment gains of $776.8 million.

Before the investment gains and a claims liability adjustment, ACC made a $461 million surplus.

The better-than-budget surplus reflected higher income from levies because of more people being in work and earning more, ACC chief executive Garry Wilson said.

Rising healthcare costs, particularly for the seriously injured, were responsible for $223 million of the deficit, $799 million was because of interest rate movements, and a further $325 million was provided to cover expected future cost increases.

These were factors outside ACC's control, Mr Wilson said.

"Interest rates will always fluctuate and, while all efforts are made to reduce costs without sacrificing quality of service, medical expenses rise as new technologies and pharmaceuticals are introduced and willingly adopted by ACC," he said.

An ACC spokesman said changes in interest rates had an impact on the valuation of ACC's estimates of future claim costs.

If interest rates fell, it would be expected that less would be earned from investments, he said. Factors such as the effects of inflation were also involved.

The ACC made a 13.4 per cent return on ACC's reserves portfolio, taking the gains on investments to more than double the amount budgeted. It aimed to be fully funded by 2014, with sufficient money set aside to be able to cover full long-term costs.

ACC ended the year with net investment reserves of $6.5 billion, which it aims to build to about $17 billion by 2014 as it invests to fully fund all its liabilities.

Mr Wilson said that getting consistently high investment earnings from the funds had helped ACC maintain levies at levels unequalled by any other injury insurance scheme in the world.

At the same time, the cost of individual claims had been rising as ACC increased assistance for the severely disabled.

Healthcare cost rises were a worldwide phenomenon and had been driven in New Zealand by pay agreements with nurses and other providers.

"Movements of this magnitude put pressure on levies, but ACC has been able to contain or reduce costs in some key areas and any rate modifications are likely to be modest because of ACC's strong performance," Mr Wilson said.

The corporation had made considerable progress in improving access to the scheme, particularly for Maori, Pacific and Asian groups who were typically under represented in claim statistics.

"It's important ACC reaches these groups because they are entitled to our support when they are injured and because early rehabilitation usually means faster recovery," he said.

ACC was spending more than $40 million a year on injury prevention.

It was also making considerable progress working with partners to promote accident prevention on the roads, at work, in the home and at recreation.

http://www.stuff.co....3868a13,00.html
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Posted 27 September 2005 - 08:18 AM

Like All ACC pressreleases the figures are manipulated to provide the effect ACC desires.
Is there a levy increase on the cards or is now that Wilson is on his way they are balancing the books.
It is time that the auditor general looks very closely at the books and does something about the totally fraudulent practices of this theiving pack of money grabbers.Of course thats highly unlikely because liars clark and dyson happily have used the bullshit and thievery to balance the books, and now they have spent the surplusses gained by thieving from the claimants in election bribes are trying to balance the books, and wilson and cohorts will carry the can of course, he is on his way so will be a handy scapegoat.
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