Fed: Doctors meet to reject indemnity levy plan

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Fed: Doctors meet to reject indemnity levy plan

By Graeme Webber

SYDNEY, Aug 24 AAP - Doctors have rejected plans for a federal levy to cover outstandingmedical compensation claims, warning industrial action could be taken.

About 200 doctors attended a rally in Sydney today organised by the Australian DoctorsFund, an independent health policy think tank which has about 6,000 doctors in its membership.

The federal government earlier this month released a plan to cover IBNR (incurred butnot reported) claims, otherwise known as tail claims, by imposing levies on medical indemnitypremiums over the next decade,

Fund spokesman Glen Ramos said the rally had support from the Australian Medical Association,whose president Dr Bill Glasson addressed today's meeting in Sydney.

The doctors decided to return to the hospital where they worked and hold meetings aboutfurther action against the levy, which could include meetings, protests or industrialaction.

"What that action may be will be depending on outcomes of discussions between the federalAMA and the Prime Minister's department next week," Mr Ramos said.

"The doctors are very unhappy with the way the levy is being implemented."

Mr Ramos said the levied medical indemnity premiums would be mailed out from this week,and doctors and specialists would find some hefty increases.

"Doctors will have to pay a tax, essentially ... that is equivalent to 50 per centof their year 2001 medical indemnity premium," Mr Ramos said.

"An orthopaedic surgeon will be paying about $25,000 for his first year's IBNR levy."

Rural and outer metropolitan specialists were already struggling to pay insurance costs,and their patients would be hit first, Mr Ramos said.

He said the levy system was particularly unfair for new doctors to have to shoulderthe cost of past medical compensation claims.

"It just may mean that people aren't taking up some of these surgical traineeships... and there possibly will be a shortage of doctors in the future," he said.

Meanwhile, retired doctors will escape the levy but most GPs face a $1,500 annual charge.

The Commonwealth says the package would add $120 million to its efforts to help doctorssurvive the crisis in indemnity insurance.

The government was drawn into the medical indemnity crisis last year after the collapseof United Medical Protection (UMP), the biggest doctor insurance group in Australia.

UMP is in provisional liquidation and liquidator David Lombe is attempting to restructurethe organisation.

The AMA says around 20,000 doctors would face annual bills of up to $10,000 a yearfor the next decade, with obstetricians, orthopaedic surgeons and neurosurgeons hardesthit.

AAP gmw/cjm/br

KEYWORD: INDEMNITY