Jonathon Duniam (Tasmania, Liberal Party, Assistant Minister for Forestry and Fisheries) Share this | Hansard source

I thank all senators for their contributions and in particular Senator Rennick for his personal reflections relating to elements of this bill. This bill, as has been outlined by a number of others, amends the Medical Indemnity Act 2002 and related legislation to reduce and simplify the legislation underpinning the medical indemnity schemes through consolidation and repeal of redundant legislation. The new legislation will continue to ensure medical indemnity insurance products are both available and affordable for medical and allied health practitioners. Improvements have been made to the provision of universal cover for doctors who may otherwise be uninsurable. While there is a risk that poor-performing doctors benefit from universal cover, the reason it exists is to protect doctors with a significant claims history from being denied cover where the claims history relates to their specialty, location or patient cohort. This risk is being mitigated by increasing the risk loading which insurers can apply and by enabling insurers to refuse cover in exceptional circumstances.

Only four of the six participating insurers have a contract with the Commonwealth. The effect of this has been that the two insurers outside of these contractual arrangements cannot be compelled to provide cover and there is no mechanism to enforce universal cover. The effect of the contractual arrangements has, therefore, been unevenly distributed.

Insurers will continue to be able to impose risk management conditions on high-risk doctors and refuse insurance in exceptional circumstances. These new arrangements will reduce administrative requirements, and insurers will no longer need to contract with the Commonwealth, removing inequities between contracted and non-contracted parties. This will reduce the burdensome and duplicate reporting and ensure there is an open market.

The government will also be maintaining support for high-cost claims and exceptional claims made in respect of health practitioners who are insured by insurers presently participating in the schemes. These practitioners will need to be practising in professions accredited by the Australian Health Practitioner Regulation Agency. The government will be establishing a separate high-cost claims and exceptional claims scheme for allied health professions, including employed privately practising midwives. The allied health schemes will mirror the existing high-cost claims and exceptional claims schemes to include midwives and close an inequitable gap. This means all registered midwives not covered under the Midwife Professional Indemnity (Commonwealth Contribution) Scheme are covered under the allied health high-cost claim scheme. Claims made under these schemes will apply regardless of whether it is made against a practitioner covered by an insurance contract between the individual practitioner and insurer or an insurance contract between the practitioner's employer and insurer. However, the claim must be against the individual practitioner. The amendments in this bill will ensure parity arrangements for doctors, allied health professionals and midwives.

In summary, these legislative changes support the recommendations of both the first principles and thematic reviews while addressing recommendations made by the Australian National Audit Office. The government will continue to ensure improvements are made in the monitoring and performance of the indemnity insurance fund against its objectives of delivery of the independent actuarial evaluation to be tabled in parliament in 2021. I commend the bill to the Senate.

Question agreed to.

Bill read a second time.