AMA and Government agree on plan to move forward in solving medical indemnity crisis

Dr Glasson said huge progress had been made since yesterday's meetings.

"Outcomes from this morning's meeting should give the heart and confidence to doctors who have resigned or who are considering resigning from all or part of their practice to continue to treat their patients," Dr Glasson said.

"The Government has fully accepted that the medical indemnity system in Australia needs to be fixed and will be fixed.

"The Government acknowledges that the spectre of continuing high medical indemnity premiums and lack of security would not give doctors the confidence, security or motivation to keep working.

"Access and affordability of medical services for all Australians will disappear if the medical indemnity system is not reformed.

"The Government also acknowledges that medical indemnity is an international problem and that doctors are not responsible for the crisis.

"Tony Abbott has today shown a solid understanding of the problem and has displayed a strong commitment to finding a workable and sustainable solution for doctors, patients and the whole community.

"We welcome the withdrawal of ALL the IBNR levy notices and the decision not to issue any new notices until after the policy review committee reports in December.

"Any levy already paid by doctors will be refunded.

"The AMA has given the Government an assurance that there will be no further calls for financial assistance during the review process.

"We welcome also that the Minister will personally chair the policy review committee.

"The committee will comprise two doctors, a lawyer well versed in insurance issues, an actuarial expert, and Assistant Treasurer, Senator Helen Coonan.  The AMA will be consulted on the selection of doctors to serve on the committee.

"A key task of the team will be to ensure that doctors' indemnity insurance is affordable and covers their working life and retirement - the so-called 'claims incurred' cover.

"The AMA is confident that the Minister will not allow this small, highly skilled team to get bogged down in bureaucracy," Dr Glasson said.

Outcomes agreed by the Government and the AMA include:

• Extending the high cost claims scheme to cover 50 per cent of claims between $500,000 and $20 million
• Treating claims under the Exceptional Claims Scheme on a 'claims incurred' basis
• Fully indemnifying doctors for the component of any settlement above $20 million under the Exceptional Claims Scheme
• Exempting from the IBNR levy all doctors employed by public hospitals or where their private income is returned to those hospitals
• Exempting all doctors aged 65 and over from the IBNR levy, regardless of practice income
• Exempting all doctors from the IBNR levy who need to retire early because of disability or permanent injury, and
• Exempting doctors and their estates from the final year's IBNR levy liability due in the year of their death.

"The Government assures us that these measures will all be implemented at the earliest possible opportunity," Dr Glasson said.

"The AMA finds it refreshing that the Government has displayed an energetic and sincere willingness to examine and repair the whole medical indemnity system so it can no longer haunt the medical profession and patients.

"The plan of action agreed today, if taken to the desired conclusion by December, should put an end to the crisis.

"The AMA will continue to meet with the Minister and his advisers to resolve any outstanding issues to ensure that the review proceeds effectively," Dr Glasson said.

CONTACT:         John Flannery            (02) 6270 5477 / (0419) 494 761

                       Judith Tokley             (02) 6270 5471 / (0408) 824 306