ACC Pricing Review 1 July 2025

What we consider when reviewing pricing

Our pricing review considers factors such as

• general inflation
• changes in service component costs (e.g. overheads and indirect costs)
• substantial changes in the market

We adjust prices where our review finds that the factors we’ve considered have had an impact on the price we pay.

When an adjustment is applied to one component (e.g. overheads) it doesn’t necessarily result in the service item price changing by the same percentage. This is because the service item price is made up of several components (e.g. direct costs, indirect costs, overheads, and margin).

Next steps

We’ll begin issuing contract variation letters in mid-March which will confirm any adjustments to the contracted rates. All variation letters will be issued by early June. We’re doing our best to get these contract variations to you as soon as possible.

The new rates will apply from 1 July 2025, regardless of the date you receive a variation letter. For some services you may also bill ACC under Cost of Treatment Regulations. The changes outlined in your variation letter will only apply to your contracted rates.

You'll need to update your invoicing systems from 1 July 2025 so you are paid at the new rates, and to avoid any delays or errors in processing payments.

Pricing adjustments FAQs

What are the changes?

We regularly review the contracted rates we pay for services delivered to our clients.

These reviews consider factors such as general inflation, changes in service component costs and scheme sustainability.

As part of our pricing review, there will be an adjustment to many contracted rates. These vary between contracts and will be shared in the variation letter our suppliers receive.

Where can I find the new prices?

You can find your pricing adjustment in your contract variation letter.

From mid-March onwards, we’ll issue contract variation letters to confirm the rate increases that will be effective from 1 July 2025. All variation letters will be issued by early June.

We’re doing our best to get these contract variations to you as soon as possible.

When do I start using the new rates on my invoices?

Services delivered on and after 1 July 2025 should be invoiced at the new rates. Please note that invoices during this week will need to include both new and old rates if you have consultations on either side of the start date.

You'll need to update your invoicing systems, so you are paid at the new rates and to avoid any delays or errors in processing payments.

How do I invoice for services if I don’t use a practice management system?

If you bill manually or through ACC online services you can continue to invoice us for services as you do now, using the updated prices from 1 July 2025. Here is a link with instructions on how to invoice ACC online.

What about increases for providers operating under the Cost of Treatment regulations?

We review the rates we pay Cost of Treatment Regulations providers on a bi-annual basis. This process is run by MBIE before being approved by Cabinet.

Are there any contracted services which are not included in this price review?

Yes. Equipment and Consumables are not included in this review.

Can you share the adjustment percentage to expect? If not, why not?

We do not publish the percentage adjustments, as they do not necessarily apply to every service code within each and every contract. This is due to contracts having different pricing structures. As a result, providing the percentage only would not be helpful to understanding actual pricing changes.

Please refer to your contract variation letter which will have the updated pricing.

Why do adjustments vary across contracts?

Adjustments are calculated based on the components that make up the price for the service, such as labour, overheads, profit and their weightings.

As a result, adjustments will vary across contracts as services within the contracts may vary due to having different components.

Why is ACC’s inflation increase different to published inflation?

Adjustments are calculated based on the components that make up the service and their weightings such as labour, overheads and profit and their weightings.

The Consumer Price Index (CPI) is a common measure of inflation and covers a broad range of goods and services and as a result is not always an appropriate reflection of the price movement for health services.

Instead, we use publicly available information that has a direct link to the component (such as labour or overheads) as a proxy to determine price movement, providing a truer reflection of cost movement for delivering those services.

Why is the travel km rate not the same as the IRD rate?

ACC pays travel based on the AA rate, which publishes an average cost per km travelled, based on the size of vehicle. We base our calculations on a combination of small and compact cars, which are assumed to be most likely used in health service fleets. The IRD rate is based on all vehicle types.

We review our rates every year. If the rate decreases when calculated from the AA report, we hold our rates instead.

Why do we need to ‘accept’ our variation letter?

Your delegated authority needs to confirm formal and express acceptance of the variation by replying to the email sent by ACC. This is because a variation to any contract requires the mutual consent of the contracting parties. By accepting the variation via email, you agree and accept all the terms of the variation.

How do I know what is changing in this variation

For this variation you will receive one email from us.

This will be your variation letter, which will contain the amended pricing which applies from 1 July 2025.

How are you working with Patient Management System (PMS) vendors to make sure they are ready?

ACC will advise PMS Vendors of the pricing changes so these are available to you before 1 July 2025.