Chris Ellison (WA, Liberal Party, Minister for Justice and Customs) Share this | Hansard source

I move:

That these bills be now read a second time.

I seek leave to have the second reading speeches incorporated in Hansard.

Leave granted.

The speeches read as follows—

MEDICAL INDEMNITY LEGISLATION AMENDMENT BILL 2006

The Medical Indemnity Legislation Amendment Bill is a further refinement of legislation implementing the Government’s medical indemnity package, in the light of consultations with insurers and doctors regarding their experience of its operation.

The Government’s original package of medical indemnity legislation in 2002 addressed the affordability of medical indemnity for doctors and the industry’s long-term viability, in a period of upheaval.

Thanks to these changes, medical practitioners in private practice have been able to obtain affordable medical indemnity insurance cover and insurers have been protected against more extreme claims. However those who had left the medical workforce—including retirees, and those on maternity leave—often faced significant ongoing costs for “run-off cover” for incidents which had occurred during their careers but had not been reported.

The Run-Off Cover Scheme, or ROCS, which began on 1 July 2004, is a logical extension of the medical indemnity package, designed to provide secure insurance for doctors who have left private practice. The intention was that medical indemnity insurers would provide cover under ROCS on the same basis as to doctors in the workforce, but in the former case the government would reimburse the cost of claims to insurers.

Although the Government pays ROCS claims, these are funded by a levy on insurers so that the scheme operates on a cost-neutral basis, to the benefit of taxpayers, patients and doctors alike.

The present Bill will align ROCS more closely to current industry practice, increase the level of certainty around the provision of ROCS cover, and simplify the administration of the scheme, following concerns raised by insurers and medical practitioners.

In particular, ROCS cover will no longer be limited to incidents which were covered by medical indemnity insurance at the time of their occurrence, but will also include those which were uncovered at the time, but for which the doctor subsequently took out retroactive cover—specifically, in his or her last contract of insurance before entering ROCS.

This change recognises that some of these gaps in cover may have been brief and inadvertent; if a doctor has addressed this by taking out retroactive cover, it seems unreasonable to exclude such periods from ROCS cover.

The cover insurers offer individual doctors under ROCS will mirror that provided immediately before they become eligible for ROCS. Other provisions ensure that the payment of claims—and the reimbursement of the cost of those claims by Medicare Australia—will be closely linked to insurers’ ordinary business practices.

From the doctors’ point of view, therefore, the transition to ROCS will be seamless: they will continue to receive the same cover and the same service.

Some of the provisions of this bill extend beyond ROCS. Apart from those clarifying abbreviations, these include a relaxation of penalty provisions in relation to compulsory offers of retroactive cover: doctors who accept such an offer will no longer have to respond in writing, but those who refuse retroactive cover will. This will ensure that no doctor misses out on retroactive cover by accident.

This change could be said to prejudice the system in favour of doctors’ taking out retroactive cover, but stops short of requiring it: medical indemnity insurance, including cover for past incidents, remains the responsibility of the individual doctor.

The government is working with medical indemnity insurers to ensure that doctors understand the importance of this decision, and in particular recognise that the medical indemnity cover they will have in retirement, in relation to past incidents, now depends entirely on their last contract of insurance. This means they should take particular care in relation to medical indemnity cover as they begin to think about retirement.

This bill builds upon the solid base of the Government’s existing medical indemnity package, particularly in relation to ROCS. It provides for greater certainty, smoother operation and a seamless transition for doctors leaving the private medical workforce.

It demonstrates the ongoing commitment of the Government to the medical indemnity industry, doctors and patients, and to working with doctors and insurers to ensure that medical indemnity insurance continues to operate viably, fairly and efficiently for the benefit of the industry, doctors, patients and taxpayers.

AUSTRALIAN PARTICIPANTS IN BRITISH NUCLEAR TESTS (TREATMENT) BILL 2006

I am pleased to present legislation to give effect to a Federal Government initiative that will provide non-liability cancer treatment for Australians who participated in the British Nuclear Testing Program in Australia from 1952 to 1963.

This bill will implement an undertaking given by the Government in 2003 when it announced its response to the Review of Veterans’ Entitlements. The undertaking was to respond positively to the health needs of the participants, at the conclusion of the Mortality and Cancer Incidence Study of the group.

The study found that the rate of some cancers among the test participants was higher than in the general Australian population, even though a link with exposure to radiation was not found.

While no link to exposure to radiation was found, the Government is of the view that support is appropriate for a group that has a clearly defined health care need, hence the health care package being offered under this legislation.

The bill will provide participants with non-liability treatment for all malignant cancers regardless of causation, as well as access to on-going cancer testing.

Persons who may be eligible under the bill include those who were Australian Defence Force personnel, Australian Public Service employees and third party civilian contractors.

This initiative is expected to benefit up to 5500 Australian participants of the nuclear weapons tests.

The health care initiatives will be funded and delivered through the Department of Veterans’ Affairs. Persons eligible under the bill will have access to extensive health care services including GP services, hospital care and pharmaceutical benefits.

The commencement date for eligibility for treatment will be three months prior to the date of lodgement of the claim or 19 June 2006, the date of the Government’s decision, whichever is the later.

Participants will also have continued access to existing statutory workers’ compensation schemes such as the Safety, Rehabilitation and Compensation Act 1988, and the Administrative Scheme administered by the Department of Employment and Workplace Relations.

Early passage of the bill will mean that eligible persons can begin to benefit in a timely manner.

This initiative demonstrates this Government’s commitment to the Australian military and civilian personnel who participated in the British nuclear tests and will assist in addressing their health needs.

AUSTRALIAN PARTICIPANTS IN BRITISH NUCLEAR TESTS (TREATMENT) (CONSEQUENTIAL AMENDMENTS AND TRANSITIONAL PROVISIONS) BILL 2006

I am pleased to present the Australian Participants in British Nuclear Tests (Treatment) (Consequential Amendments and Transitional Provisions) Bill that will make minor amendments to a number of other Acts as a consequence of the Australian Participants in British Nuclear Tests (Treatment) Bill. This bill will also make transitional provisions in relation to the commencement date for eligibility for treatment and travelling expenses.

Debate (on motion by Senator Ellison) adjourned.

Ordered that the Medical Indemnity Legislation Amendment Bill 2006 be listed on the Notice Paper as a separate order of the day.