Entitlements offered under the ACC scheme will have to be cut
and levies raised, even if part of the scheme is opened up to
competition, a report by the Stocktake Steering Group is
believed to recommend.
The report was delivered to ACC Minister Nick Smith on
Wednesday, but he has not commented on it publicly.
However, the National Business Review today reported the
group said ACC was burdened with unsustainable cost
pressures.
They were caused by rising expectations and underfunding of
extended coverage implemented by the previous Labour
government.
The report said ACC needed to be restructured and levies
would rise regardless of whether it was opened to competition
or not.
It suggested opening the work account to private insurers and
looking at opening the motor vehicle and non-work accounts to
either private insurers or self-insurance.
The massive restructure needed was likely to lead to reduced
entitlements, the report said.
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