"WORKERS COMPENSATION UPDATE"
WORKERS COMPENSATION UPDATE DECEMBER 2004 must be processed prior to returning the file to ACC in the last week of March. From 1 April 2005, ACC Introduction will take over and make any payments. In this newsletter we discuss: During April, ACC will actuarially assess any ongoing liability associated with the claims handed back. The ■ ACC Claims Handback actuarial assessment will be discussed with you, and ■ Interpretation of Audit Standards agreed, in May 2005. The actuarially assessed liability ■ Aon Consulting merges with Aon New Zealand will have a 15% prudential margin and 5% handling fee added. This will then be invoiced and payable by 30 June. ACC Claims Handback We understand there are approximately 100 open The 31st March 2005 is a major claims handback date claims ACC anticipates having handed back from the for many accredited employers. It may be the first 2000/01 policy year. claim handback for employers in the full self cover programme with a 48 month claim management WorkAon had 9 open files, most of which are only period. open because there is a life-time entitlement for an independence allowance. ACC has this week mailed a disk to Accredited Employers listing claims that they consider to be Note: Sarah Hills-Livingstone and Kim Holland open now, which could be due for handback on 31 from WorkAon will contact you if you have any March 2005. These disks contain several claims that open claims to be reported to ACC. incorrectly remain open in ACC's database. We have been in touch with ACC who have confirmed that Interpretation of Audit Standards most of these claims are in fact closed. The ACC data team are aware that there are in fact only 9 open claims from this policy period for all WorkAon ACC has put all Partnership Programme Auditors clients. through refresher training recently. If you are one of our six clients with an open claim, A trend we have seen since this time is a change in we will be in touch with you within the next week. focus and emphasis on when a needs assessment is All other clients should: required. Traditionally we have interpreted that a needs assessment is only required on high risk claims, ■ Sign and return the declaration stating that there i.e. those claims where the employee is off work for are no open claims for the 2001 policy period; more than 7 days. The needs assessment is also is ■ Cross out point one stating the template has most instances conducted by WorkAon following been completed and returned. notification. At this stage our advice is that you do not attempt to For the last two years this has been the custom and complete the diskette sent by ACC. practice followed by employers and third party administrators. It has also been accepted by auditors If you want to complete the diskette sent by ACC, we at the annual audits. may be able to assist by interrogating our claims system, however we will need to charge for this, as it The new emphasis appears to be a needs assessment can be a time consuming task. is required when: The signed declaration must be back with ACC by 17 ■ There is more than 1 Doctor visit December 2004. ■ There are more than 6 Physio treatments Any open claims will be audited in February next The expectation is also that the needs assessment will year. All payments owing up until 31 March 2005 be conducted at the point at which the employer (supervisor) knows the injured person has left the Aon Risk Services 1 worksite, or is unable to return, or within 48 hours of this time for secondary and tertiary employers. These changes have serious implications for meeting the timeframes. If these changes are enforced by Auditors, employers will need to ensure WorkAon is faxed a copy of the ACC45 on the day of the doctor visit, or notified on that day. Alternatively, employers will have to ensure supervisors are aware of this change, and ensure they conduct needs assessments when staff go to, or return from the doctor. We have discussed these changes with the ACC Partnership Team, however they do not consider this to be a change at all, and have indicated that they are not planning on informing Accredited Employers of this change. We Can Help WorkAon has developed a number of web-based tools for reporting claims and conducting simple needs assessments. If you want to know more about our web tools, please contact either Sarah Hills-Livingstone on (04) 474 3808, Kim Holland on (09) 362 9076 or Dianne Blackford on (07) 834 4728. Aon Consulting merges with Aon New Zealand From 1 December 2004, Aon's sister company, Aon Consulting, has been merged with Aon New Zealand. Aon Consulting is a specialist division that manages superannuation funds, provides investment advice, and provides actuarial services, including valuations of claim liabilities and employee entitlements. Aon Consulting and WorkAon now share the same reporting line, and will work closely together to provide comprehensive claims management and valuations. For any claims handed back to ACC, Aon Consulting will be able to provide valuable advice in regard to verifying actuarial assessments carried out by ACC. Finally, WorkAon appreciates the continued relationship that we have been able to maintain over the past year, and look forward to being of more assistance in 2005. Aon Risk Services 2