ACC Minister Nick Smith has confirmed millions of dollars of funding cut from the scheme is to be covered by the health system.
The Accident Compensation Corporation turned down 3500 more claims for surgery in the last financial year than in the year before.
Dr Smith told Nine to Noon the tightening of funding rules will save $310 million this year.
He said it is necessary for a greater number of operations to be funded by the health system to contain ACC's costs.
Dr Smith also said changes in the rules for physiotherapy treatments have already caused the number of treatments to drop by a third as patients pay $10 to $20 per visit.
