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Federal government reaffirms commitment to ensuring doctors have access to medical indemnity cover

The Minister for Health and Ageing, Senator Kay Patterson sought to reassure doctors that the changes to medical indemnity that commenced today provide doctors with greater security and should not cause doctors to cease practice.

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1 July 2003

Federal government reaffirms commitment to ensuring doctors have access to medical indemnity cover

The Minister for Health and Ageing, Senator Kay Patterson sought to reassure doctors that the changes to medical indemnity that commenced today provide doctors with greater security and should not cause doctors to cease practice.

Senator Patterson expressed concern that some doctors may be considering ceasing practice because they were not aware of the significant measures in the Federal Government's medical indemnity package.

Senator Patterson said, "I understand that some doctors may feel concerned at moving to new arrangements, however I want to reassure doctors that action taken by the Federal Government provides greater certainty that their claims can be met.

The Federal Government's package is a comprehensive set of measures to ensure that doctors will have access to medical indemnity cover which is affordable and underpinned by the same prudential standards which apply to indemnity for other professionals," Senator Patterson said.

"If doctors have any concerns about their level of cover I encourage them to talk to their medical defence organisation (MDO) and to shop-around if they are not satisfied."

The Federal Government now requires MDOs to offer minimum "run-off" cover to medical practitioners ceasing practice in 2003-04 and has commissioned a study, in consultation with the AMA and MDOs, to examine longer-term arrangements to ensure the availability of affordable retirement cover.

The Government has also addressed premium affordability through a four year $140 million premium subsidy scheme for obstetricians, neurosurgeons and general practitioners who undertake procedures billed under Medicare. The High Cost Claims Scheme and the Blue Sky Scheme for large medical indemnity claims will also help alleviate pressure on premiums.

Senator Patterson encouraged State and Territory Governments to continue to take action on tort law and legal system reform, which will also help make premiums more affordable, and to remove stamp duty from medical indemnity premiums, as requested by the Prime Minister.

The Government's package aims to ensure that:

  • Doctors are covered for medical indemnity on a commercially sound and sustainable basis and that patients have on-going access to vital medical services.
  • Premiums are affordable for doctors to ensure ongoing provision of services to patients and doctors receiving a premium subsidy undertake quality and safety programs.
  • Members of MDOs with unfunded incurred but not reported liabilities contribute to meeting their funds' liabilities with a contribution to be paid over a manageable period.

Log onto www.health.gov.au/medicalindemnity or freecall 1800 007 757 for more information.

For more information contact Randal Markey, Media Adviser, 6277 7220