Pricing review and changes from 1 July 2026
As part of our ongoing contract management, ACC regularly review pricing across our services to ensure funding remains fair, sustainable, and aligned with the outcomes we’re seeking for injured people.
We’ve now completed our latest review and will be adjusting some contracted rates effective from 1 July 2026. Variation letters will be issued for affected contracts, and suppliers must formally accept these variations for the new rates to apply.
How we review pricing
For certain ACC contracts, pricing reviews are undertaken annually to support the long-term sustainability of the Accident Compensation Scheme. Price adjustments are only made where the factors considered have materially changed and had a significant impact on price.
Safeguarding the long-term sustainability of the Accident Compensation Scheme and the services it provides to injured New Zealanders is a shared responsibility.
Short term cost fluctuations, including fuel price volatility, are monitored separately and are outside the scope of the annual pricing review.
Pricing approach for FY2026/27
For the 2026/27 financial year, ACC will apply legislated and targeted pricing adjustments through a deliberate and measured approach.
Available information indicates that the funding levels set through this review are sufficient to support market viability, taking into account increased service delivery costs and expected efficiency gains. This approach reflects ACC’s responsibility to balance access to services, fair and sustainable funding, and stewardship of public funds.
A general 2% uplift, aligned with minimum wage movements, will apply to most service components (excluding mileage), with the following exceptions:
- Allied health price components will be held at current levels, reflecting cumulative increases in recent years and evidence confirming that current funding is sufficient to support service delivery.
- The Elective Surgery Services (ESS) Index of 0.77% will continue to apply, consistent with the approach used since 2016. No wage movement has been applied for nursing and specialist components within the index.
- Some primary care contracts require a further minor increase to align subsidised care rates with those set under the Cost of Treatment Regulations.
The final adjustment for each contract will depend on how the service is funded and the mix of service components involved.
ACC recognises that some providers may face genuine and legitimate sustainability challenges, and we are committed to long-term market sustainability driven by rigorous, transparent cost discovery. Providers facing genuine sustainability challenges can access a transparent, evidence‑based price review pathway, with support targeted where it is demonstrably needed.
Your ACC Engagement and Performance Manager (EPM) can discuss this pathway with you, or you can contact us via our online form.
Online form | Contact our provider relationship team.
Pricing adjustments questions and answers
Can I ask further questions about the detail of how you came to this decision?
We’re unable to provide further detail beyond what has already been shared in this communication.
Where can I find the new prices?
You can find your pricing adjustment in your contract variation letter.
From April onwards, we’ll issue contract variation letters to confirm the rate increases that will be effective from 1 July 2026. 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.
What if I don’t receive a variation letter?
You will only receive a variation letter if a pricing adjustment applies to your contract. If you do not receive a letter, there is no change to your pricing, and you should continue billing ACC at your current contracted rates.
When do I start using the new rates on my invoices?
Services delivered on and after 1 July 2026 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 2026.
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.
Why do pricing adjustments vary across contracts?
Adjustments are calculated based on the components that make up the price for the service.
As a result, adjustments will vary across contracts as services within the contracts may vary due to having different components.
Why is the travel km rate not the same as the IRD rate?
The IRD rate is designed as a simplified proxy for private vehicle tax and reimbursement purposes and reflects average private vehicle ownership costs. As a funder, ACC recognises that health service providers typically operate small or compact vehicle fleets and that some vehicle costs are already reflected in other elements of service pricing, including overheads. ACC therefore sets travel rates to support funding stability, efficient service delivery, and responsible stewardship of public funds, rather than full reimbursement of private vehicle ownership costs.
Fuel prices have risen sharply lately – have you taken this into account?
ACC recognises that recent fuel price increases are putting pressure on some providers. We’re keeping a close eye on market conditions and will consider next steps if pressures become unsustainable, in line with any whole-of-government approach. Short term cost fluctuations, including fuel price volatility, are monitored separately and are outside the scope of the annual pricing review
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 2026.