Draft AEP Injury Management Audit Standards:

ACC has recently amended the Accredited Employers Programme Injury Management Audit Standards and circulated a draft document to employers and TPAs for review and feedback.  Gallagher Bassett (GB) was a strong advocate for amending the old audit standards to introduce a focus on good outcomes for participants in the AEP Programme.

Unfortunately the proposed changes appear to increase the level of compliance (and the associated costs) without providing the framework within which better outcomes for employees and employers can be achieved.

Various aspects of the proposed Audit Standard relate to all claims and miss the important distinction between claims for lost time injuries and claims that relate only to medical fees.

The amended Audit Standard also requires employers to manage the early intervention for reported pain and discomfort.  This poses operational risks as the employer will not be acting under the ACC legislation and the provision of entitlements without a covered injury sit outside the Act.

The draft changes do not appear to align with the service improvements and simplified processes being undertaken for other business customers.

Gallagher Bassett is taking the opportunity to participate in the feedback process with a view to ensuring that the finalised Audit Standard is both effective and practical.  We encourage you to attend the feedback sessions and advocate for positive change.

Residual Levies:

On 22 September 2015, ACC Minister Hon. Nikki Kaye confirmed that residual levies will be removed from ACC’s Work, Earners’ and Motor Vehicle Accounts.  This has led to some queries being received from employers as to when the Work Residual Levy will actually cease to be invoiced and payable.

The Minister’s release read, “My decision to remove residual levies next year is the result of the latest revaluation of residual liabilities I’ve received, which shows the first equitable opportunity to remove the (Residual) levies is the 2016/17 levy year”.

Please be aware that the practical effect of this statement is that your 2015/16 Year End Invoice will not include any Work Residual Levy component.    It is not an error and for some employers this will represent significant levy savings.

The 2015/16 Year End Invoice will only comprise the reconciliation between the estimate and actual liable earnings for Y/E 31 March 2016 plus the Working Safer Levy (based on $0.08 per $100 of actual liable earnings).

Claim Related Inquiries:

GB is service and solution focused.  If you have any claim related questions or concerns please contact one of our Regional Team Leaders:

Northern Region:
Sonal Bassi
Ph:09 967 8218
sonal_bassi@gbtpa.co.nz

Central Region:
Lauren Horgan
Ph: 04 901 3194
lauren_horgan@gbtpa.co.nz

Southern Region:
Andrea Nelson
Ph: 03 943 5061
andrea_nelson@gbtpa.co.nz