Questions hidden beneath ACC changes

The Government has made no secret of its desire to open up ACC to private competition.

What would this mean for New Zealanders? What do we want and expect from our accident care system? Who will pay if the Government does not? The cost of care is not going to go down.

Doctors and hospitals still need to be paid.

I have recently returned to New Zealand after 10 years back in the United States, where I had excellent medical care but it was far from cheap. I paid around $800 per month pretax towards my health benefits and I believe my employer paid double that on my behalf. And the costs did not end there.

Our car insurance in New Zealand is $200 per year; in the US $1600.

The bulk of this difference was to cover being sued if someone was hurt in an accident we caused. Vehicle registration was cheaper because there was no ACC component but not that much cheaper.

On the question of vehicle registration, what would happen in New Zealand if private accident cover becomes an option? If someone has private cover, would their vehicle registration have the ACC portion removed? Or would it be left in to cover harm done to someone else in the event of an accident?

And would insurance companies be willing to offer accident cover without the right to sue to recover costs if someone was deemed to be at fault?

Do we want to become a litigious nation? In the US, if you hire someone to do work on your property - paint the house, lay a cable, prune a tree - it is important that you get a certificate of insurance from the person doing the work.

You need to know your property is named on their insurance because if not you can find yourself liable for a worker's care if s/he is injured while working on your property.

What is our Government's aim here? To create better accident cover for New Zealanders or to shift costs from the Government on to us as individuals? ACC may be a little dented but to truly break a health system, try privatisation.

Nina Arron
Lawrence

- In recognition of the importance of readers' contribution to the letters page, the newspaper each week selects a Letter of the Week, with a book prize courtesy of Dunedin publisher Longacre Press.

This week's winner, Nina Arron, of Lawrence, receives a copy of John Z. Robinson's Red Studio, Longacre Press, $39.99.

ACC changes

Thank you Nina Arron for an extremely accurate and thought-provoking letter. My understanding, simply based on research from the "Listener" but since corroborated by other sources, is that ACC took in over $1 billion more than it paid out in the last financial year. As such it is self-funding and does not need to be "future proofed" as Dr. Nick Smith would have us believe.
One has to believe therefore that these changes are being made to make ACC levy payments and the level of repayment given unpalatable and drive the public to private insurers, none of whom would be as freely compassionate as the ACC's "no fault" charter. The agenda seems to be that the National Party want no institution run by the state, for the people, even if that institution is the best option available for the people.
My partner and I, as self-employed contractors, pay immense amounts to ACC on behalf of ourselves and our staff. We are happy to do so because of the cover that ACC offers. To now put additional levies and stresses onto us seems counter-productive. We have had private schemes running parallel to ACC which cost lots, were never used and were far more unlikely to pay out even if requested.
I fear that National may be shooting itself in the foot here and, if so, I wonder who will pay the repair bill.