Fed: Abbott says indemnity plan a medium-term solution

AAP General News (Australia)
12-18-2003
Fed: Abbott says indemnity plan a medium-term solution

CANBERRA, Dec 18 AAP - Health Minister Tony Abbott said today his latest plan to prop
up the troubled medical indemnity system was only a medium-term solution and signalled
more changes in another 18 months.

He said if the latest $600 million package did not solve the medical indemnity crisis,
it would be revisited in mid-2005 and things like a doctor-owned medical insurer would
be considered.

"This is a plan for the medium term," Mr Abbott told the Nine Network.

"In 18 months time we'll have another look at the situation and if there are still
problems, well we'll look at doing more including a doctor-owned, monopoly medical insurer."

The indemnity package announced yesterday is the fourth government attempt to resolve
the crisis around doctors' negligence insurance since the near collapse of insurer United
Medical Protection (UMP) last year.

Taxpayers will spend an additional $181 million to bring down the cost of insurance
for doctors over the next four years, adding to $438 million already committed by the
government.

The package includes direct subsidies to insurers to cut premium costs and a guarantee
the government will meet half the cost of claims in excess of $300,000.

Mr Abbott played down threats GPs would leave the profession in droves.

"I don't believe that's correct," he said.

"The average GP's premium is comparatively modest compared to that of the average specialist's,
so we are doing something for GP proceduralists and we are putting in place for GPs the
reassurance that no one in the medical profession should face crippling medical indemnity
insurance premiums.

"You can never guarantee that doctors won't walk out because in the end doctors are
independent professionals but they have no reason to walk out because of medical indemnity
insurance because of what the government has done."

AAP sm/sjb/jlw

KEYWORD: INDEMNITY SECOND DAYLEAD

2003 AAP Information Services Pty Limited (AAP) or its Licensors.