Government locks in medical indemnity 'Blue Sky' guarantees
AMA President, Dr Bill Glasson, today welcomed confirmation of the Government's Blue Sky Scheme threshold for large medical indemnity claims.
Dr Glasson said the AMA had sought a $20 million threshold for claims notified from 1 July 2003 and a $15 million threshold for claims notified under a contract of insurance in the period 1 January 2003 to 30 June 2003.
"Both these measures were locked in by today's announcement from Senator Patterson and Senator Coonan," Dr Glasson said.
"This is another huge step forward in resolving the medical indemnity crisis, but there is still a way to go.
"A loophole that meant some doctors may have had to seek 'gap' medical indemnity insurance to cover blue sky claims has also effectively been closed.
"The AMA thanks the Government for taking our concerns on board in making this announcement.
"Next step is working with the Federal Government to develop a workable and portable and affordable death disablement and retirement (DDR) scheme to ensure that doctors are not burdened with indemnity premiums in their retirement years.
"We will now be looking to the States and Territories to proceed with their tort low reform processes so a uniform national outlook can be achieved. Professional standards legislation that caps medical indemnity liability must also be introduced in all States and Territories.
"The Medical Defence Organisations (MDOs) now have a responsibility to provide attractive and affordable medical indemnity products to their members.
"As far as the AMA is concerned, the jewel in the crown of a medical indemnity solution remains a national care and rehabilitation scheme for the severely injured, and we will be aggressively pursuing this objective.
"Only when all the pieces are in place - the Blue Sky Scheme threshold, nationally consistent tort law reform, good MDO products, and the national care and rehabilitation scheme - will we see significant downward pressure on medical indemnity premiums.
"Only then will confidence and security be restored to doctors and patients," Dr Glasson said.
CONTACT: John Flannery (02) 6270 5477 / (0419) 494 761