Medical Indemnity IBNR Levy Coonan Takes Some Sting Out Of "Patterson's Curse" But Damage Will Still Spread
AMA President, Dr Bill Glasson, said today the Government's IBNR levy, announced by Assistant Treasurer, Senator Helen Coonan, will still have a serious impact on sections of the medical workforce and patients despite last-minute concessions for retiring doctors and doctors who have moved from private to public practice.
Dr Glasson, who this week described the levy as 'Patterson's Curse' (after Health Minister, Senator Kay Patterson), said a weed is a weed is a weed, and there could be as many as 20,000 doctors who will be affected by the levy.
"Obstetricians, orthopaedic surgeons, neorusurgeons and procedural GPs (GPs who deliver babies and conduct minor operations) will be hit the hardest," Dr Glasson said.
"Some will be paying a levy of more than $10,000 every year for the next ten years.
"While the levy will be alleviated somewhat by the Government's premium subsidy scheme and tax deductibility, there will be costs passed on to patients, especially for high risk procedures and operations. Put bluntly, the IBNR levy means many patients in NSW and Queensland will be paying more for their health care."
Dr Glasson said the AMA is grateful that the Government has adopted AMA recommendations that exempt doctors over 65 who earn less than $5000 in medical income a year and doctors who moved from private practice to public practice prior to May 2001. The AMA also welcomes Federal funding of $117 million to cover the cost of exempting doctors over 65 and the $1 million to assist GP registrars undertake procedural training.
"These exemptions provide relief for doctors who are retired, approaching retirement or who have adopted work practices that have dramatically reduced their income or who are commencing a GP procedural career," Dr Glasson said.
"We also welcome the Government's stated commitment to pursue a long term national care scheme for the severely injured.
"As I said at the National Press Club on Wednesday, the AMA remains opposed to the levy because national consistent State tort law reform has still not been achieved, the long-term care scheme is still not happening, and premiums continue to rise.
"The care scheme must become reality and premiums must come down. If not, this new levy on doctors will feed yet another crisis in medical indemnity and patients will be the victims of poor Government health policy," Dr Glasson said.
01 August 2003
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