ACC won't be turned into a pay-as-you-go scheme because it would leave future generations picking up the cost of accident cover, the government says.
The Green Party this week sent ACC Minister Judith Collins a "rehabilitation plan" for the corporation and suggested pay-as-you-go would be better than the current system which funds it for the future through levies.
Ms Collins says some claimants remain with ACC for anywhere up to 80 years.
"While pay-as-you-go funding may look attractive in the short term, in the long run it becomes more expensive as future levy payers are required to pay more and more to cover a backlog of injuries," she said.
"It would be irresponsible to leave future generations of New Zealanders to pay for claims that happen today as well as the cost of their own injuries."
Ms Collins says the Government is reviewing ACC funding policy and the reasons for the fluctuations in projections of its accounts.
"The Government will examine the stability of the scheme, good process for levy setting, and the impact on the economy," she said.
NZN