Huge premium increases threaten medical indemnity stability
AMA Vice-President, Dr Trevor Mudge, said today that further huge premium increases - more than 50 per cent in some cases - for medical indemnity insurance renewals due by 30 June are posing a new threat to the ongoing provision of medical services.
Dr Mudge said these latest increases come on top of doctors having been slugged with average premium increases of around 20 per cent a year over the last five years.
Following a telephone hook-up this morning involving AMA State Presidents and members of the AMA's Medical Indemnity Taskforce, Dr Mudge said the premium hikes are hitting established doctors and new doctors alike.
"We have one case where a young doctor who has just finished obstetrics training has been asked to pay $60,000 for indemnity insurance before she has had a chance to see her first patient," Dr Mudge said.
"With a Medicare fee of $422.25 per delivery, that's a lot of babies to just break even.
"On the other hand, there are registrars and trainee doctors who cannot obtain any cover at all.
"It is a case of some doctors being treated as uninsurable and other doctors finding their insurance unaffordable.
"Either way, there is a very real threat of a withdrawal of health services from 1 July, particularly in Queensland where most of the renewals are due."
Dr Mudge said the Federal Government's medical indemnity 'guarantee' is doing its job, but other factors have raised the crisis to another dimension.
"Some of the State tort law reform legislation is slow in coming or inadequate, and this is clearly the case in Queensland where the problems are more pronounced," Dr Mudge said.
"Disruptions to the provision of health services in Queensland from next week appear inevitable and unavoidable.
"If a doctor cannot obtain or afford medical indemnity insurance, it is not in the doctor's or the patient's best interests to proceed with consultations, surgery or other procedures.
"Areas hit hardest will be private hospitals and country towns where GPs perform obstetrics and minor surgery."
Dr Mudge said the problem is not confined to UMP, it is an industry-wide problem.
"The global re-insurance market, the slow response by some of the States on tort law reform, and the failure of the Federal Government to aggressively pursue a national care and rehabilitation scheme for severely injured patients are all putting upward pressure on medical indemnity premiums," Dr Mudge said.
"We need strong action immediately to prevent the withdrawal of medical services around the country.
"There are real concerns that if the medical indemnity crisis continues there will be serious medical workforce shortages in Australia.
"Practising medicine is becoming too costly and too risky.
"Senior and experienced doctors are choosing to retire early.
"Other doctors are seeking work overseas where medical indemnity insurance is not a burden.
"And our brightest students will look at professions other than medicine for their careers.
"When medical graduates are expected to pay $60,000 up-front before they can even see their first patient it is clear we are confronting a social problem of the highest order."
Dr Mudge said the Prime Minister had announced plans for a Federal Government-led longer term strategy in his statement on Medical Indemnity Insurance on 31 May 2002.
The Prime Minister said in May that one of the Government's key proposals was:
"Developing arrangements, including consideration of direct financial support to ensure premium affordability for doctors undertaking higher risk specialties."
"The time to implement this proposal has arrived," Dr Mudge said.
CONTACT: John Flannery (02) 6270 5477 / (0419) 494 761
Sarah Crichton (02) 6270 5472 / (0419) 440 076