Health and Ageing
Medical Indemnity — changes to United Medical Protection liability contributions
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Health and Ageing | -6.7 | -9.8 | -9.4 | -9.4 |
| Related expense ($m)(a) | ||||
| Department of Health and Ageing | 0.2 | 0.1 | 0.1 | 0.1 |
- A positive number for expenses indicates a decrease in the fiscal balance.
The Government will replace the Incurred-But-Not-Reported (IBNR) levy with new United Medical Protection (UMP) support arrangements at a cost of $35.7 million over four years.
Under these arrangements, those doctors who were members of UMP in the year 2000 and who have a medical income over $5,000 per year will pay whichever is the least of: their contribution under the former IBNR levy; two per cent of their gross Medicare billable income; or $5,000. This will be added to the standard insurance premium of those doctors concerned and will attract support under the Premium Support Scheme.
The number of years for which these doctors will be required to make contributions under these arrangements will be commensurate with their years of membership prior to 2000. Doctors who had been members of UMP for a year in 2000 will pay UMP support for one year; doctors who had been members of UMP for two years will pay UMP support for two years and so on up to a maximum of six years. Even with these doctor contributions, the Australian Government will pay three quarters of the estimated UMP IBNR liability.
The moratorium announced by the Government on 3 October 2003 and the various exemptions from the IBNR contributions previously announced will continue to apply under the UMP support arrangements, at a cost to revenue of $35.3 million over four years.
Funding of $0.4 million over four years will be provided to undertake the necessary legislative and administrative processes associated with this change and to administer these new arrangements on an ongoing basis.
Further information can be found in the joint press release of 17 December 2003 issued by the Minister for Health and Ageing and the Minister for Revenue and Assistant Treasurer.