Medical Indemnity Discussion Paper

The Australian Government is to consider possible changes affecting the availability and affordability of medical indemnity insurance for health care professionals, including dentists.

On Friday last, Assistant Treasurer Mal Brough announced the release of a Treasury discussion paper on possible amendments to the Medical Indemnity (Prudential Supervision and Product Standards) Act 2003. That Act was one of a number of measures adopted to deal with the crisis of unaffordable premiums in the medical indemnity insurance market, arising from the problems then facing UMP.

The paper aims to provide options and invite comment on making medical indemnity insurance more widely available for health care professionals including doctors, nurses, midwives, pharmacists, dentists, optometrists and other health care providers required to be licensed or registered by a State or Territory.

The Government appears to be considering easing of the restriction on use of only APRA regulated insurers.

“Currently, only insurers subject to Australian Prudential Regulation Authority supervision can provide medical indemnity cover to health care professionals. Also, insurers are required to offer doctors retroactive cover for claims incurred in the past and run-off cover for claims made after the doctor has ceased to practice. The cover must be for a minimum of $5 million,” Mr Brough said.

“These requirements can limit the availability and affordability of insurance for such groups as employed doctors, nurses, midwives, pharmacists, dentists, optometrists, universities and volunteers. I am seeking submissions from the public on these issues by Friday, 27 January 2006.”

The discussion paper is available at the Treasury website.