Doctors never 'agreed' to pay IBNR levy

Dr Pesce was responding to comments by Assistant Treasurer, Senator Helen Coonan, on the ABC's Insiders program that, "...this is not something the government is imposing that the  doctors haven't in fact requested..." and "...but part of the deal was that doctors agreed they would repay that amount that hadn't been collected from them over the years to pay their past debt...".

"Senator Coonan is being misleading to say the very least," Dr Pesce said.

"I've been involved in the indemnity task force that has been in discussions the with the Government since day one, and there has never been any negotiation and there has never been a deal on this levy.

"The Government said it wanted to tax or levy doctors in return for funding UMP's liabilities to give doctors cover and allow them to treat patients without fear of litigation.

"The AMA rejected the levy idea and offered other strategies.

"We even warned the Government that a levy would spark a whole new medical indemnity crisis with more doctors being forced to consider their futures and patients having to pay more for their health care.

"The Government partly heeded our warnings by exempting retired doctors and salaried doctors, but pushed ahead with the new tax on doctors and patients anyway.

"During all our discussions, the AMA has been concentrating on the big picture of a long term solution to the medical indemnity crisis.

"We warned against inflammatory short-term fixes.

"It has been our consistent and publicly stated position that doctors would not be prepared to even discuss the possibility of a levy until the State tort law reform process was complete, a national care scheme for the severely injured was in place and operational, and medical indemnity premiums were decreasing.

"Not one of these conditions has been met.

"The Government chose instead to rush legislation through the Parliament to create a new tax on health called the IBNR levy.

"As a result, more doctors will leave the profession or cease providing important services and procedures.  As a result, patients will pay more for their health care.

"It is disingenuous of Senator Coonan to verbal the AMA and flick pass the blame for poor policy to doctors and their patients.

"The simple truth is that doctors never agreed to the IBNR levy.  They would never do that to their patients," Dr Pesce said.

Immediate Past President of the AMA, Dr Kerryn Phelps, detailed the AMA's position on the IBNR levy at the National Press Club on 17 July 2002.  The AMA position has not changed.  See attached media release from 17 July 2002.

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