Medical indemnity: Reduced Australian government support & proposed review

The Australian Medical Association reports that the Australian government’s contribution to high cost claims will see its threshold increased from $300,000 to $500,000, in mid 2018.

The High Cost Claims Scheme, under which the Government contributes 50 per cent of a claim in excess of the threshold amount, was among a number of measures introduced in 2002 – 2003.

The mid year budget update states at page 171:

The Government will achieve savings of $35.9 million over three years from 2017-18 by raising the eligibility threshold for claims under the High Cost Claims Scheme (the Scheme) from $0.3 million to $0.5 million from 1 July 2018. The current $0.3 million threshold has not been increased since 2003. The increase in the threshold reflects greater maturity and stability in the medical indemnity market than when the Scheme was introduced.

The Government will also provide $0.2 million over two years from 2016-17 to conduct a review of the Indemnity Insurance Fund and associated schemes. The cost of the review will be met from within the existing resources of the Department of Health.


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