Hon Dr Nick Smith

Minister for ACC

23 November 2010

Media Statement

Hearing aid costs to be apportioned

The costs of hearing aids for people with a mix of injury and non-injury-related hearing loss are to be apportioned between ACC and Health from 1 January 2011, ACC Minister Nick Smith announced today.

“Change is needed because it is not fair that employers are being required to pay through their ACC levies for the steeply rising costs of age-related hearing loss,” Dr Smith said. “Age is not an accident.

“The cost of ACC hearing loss claims has risen from $20 million per year in 2000 to $60 million today, and is projected to increase to $80 million per year by 2014 contributing to a $1.3 billion liability in ACC’s Work Account

“The changes to ACC entitlements are being offset by increased funding and support from the Ministry of Health. Any person receiving ACC for hearing aids is currently ineligible for health assistance but in future will be eligible for a portion of the health subsidy.

“Apportionment means people will be assessed in 10% bands for injury and non-injury-related hearing loss and funded accordingly. It means a person with 100% injury-related hearing loss would be eligible for $3450 for two hearing aids from ACC, whereas a person with 100% age-related hearing loss would receive a subsidy of $1022 for two aids from the Ministry of Health as is the case now. The change is that if a person’s hearing loss is a mix of injury and other factors, they would be eligible for some hearing aid funding from ACC and some from the Ministry of Health. For example, a person with 60% injury and 40% non-injury-related hearing loss would receive $2721 for their hearing aids.

“These changes will not affect people with severe hearing loss funded entirely by Health, returned servicemen receiving support from Veterans’ Affairs or the financial support available for low income earners from the Ministry of Social Development.

“These changes will mean less generous funding for people with a mix of injury and non-injury-related hearing loss but I am confident with 56 types of hearing aid available within the lowest band of joint funding provided their needs for support will be able to be met.

“ACC and the Ministry of Health will be working with the audiology sector to implement this fairer approach to funding hearing aids and to ensure good information is provided to the public on the changes.”

ENDS

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