Pays 50% of the cost of eligible claims over the threshold. No changes recommended. As a result of previous Government decisions, the threshold No further changes recommended (continue with previously announced for HCCS will increase from $300,000 to $500,000 from 1 change from 1 July 2018 and monitor impact). July 2018. While the objects of the legislation refer to support for Clarify the eligibility criteria for the HCCS such that the scheme only medical practitioners, the wording of the HCCS provisions enables claims by medical insurers in respect of medical HCCS has meant that claims have been made by insurers of health practitioners (consistent with the original intent of the HCCS). professionals. Uncertainty regarding some circumstances in which Clarify eligibility and claims requirements. Commonwealth will pay claims and evidential requirements. Pays 100% of the cost of private practice claims that are No changes recommended (no claims have been made under the ECS to ECS above $20 million. date). As for the HCCS, the wording of the ECS provisions means Clarify the eligibility criteria for the ECS such that the scheme only that claims could be made by insurers of health enables claims by medical indemnity insurers in respect of medical professionals. practitioners (consistent with the original intent of the ECS). Costs of the ROCS are recovered from medical practitioners Retain levy at current level but improve monitoring to enable via a levy which is collected by insurers. Some have argued of the appropriateness of the levy in five years. that the levy should be lowered as the Commonwealth is recovering in excess of the cost of the ROCS. Practitioners over 65 who permanently retire can access Enable access to ROCS for practitioners permanently retiring before ROCS. Those under 65 must cease practice for three years age 65. This would also remove the need for PSS-specific ROCS before accessing ROCS. If their insurer has contracted with differential charging for run-off cover for such practitioners who the Commonwealth for the PSS, the insurer must offer have had continuous cover with the insurer for 10 years. cover at $50 per year for the three years until they become eligible for ROCS. The requirement to cap the cost
Pays 50% of the cost of eligible claims over the threshold. No changes recommended. As a result of previous Government decisions, the threshold for HCCS will increase from $300,000 to $500,000 from 1 July 2018. No further changes recommended (continue with previously announced change from 1 July 2018 and monitor impact). HCCS While the objects of the legislation refer to support for medical practitioners, the wording of the HCCS provisions has meant that claims have been made by insurers of health professionals. Clarify the eligibility criteria for the HCCS such that the scheme only enables claims by medical insurers in respect of medical practitioners (consistent with the original intent of the HCCS). Uncertainty regarding some circumstances in which Commonwealth will pay claims and evidential requirements. Clarify eligibility and claims requirements. ECS Pays 100% of the cost of private practice claims that are above $20 million. No changes recommended (no claims have been made under the ECS to date). As for the HCCS, the wording of the ECS provisions means that claims could be made by insurers of health professionals. Clarify the eligibility criteria for the ECS such that the scheme only enables claims by medical indemnity insurers in respect of medical practitioners (consistent with the original intent of the ECS). Costs of the ROCS are recovered from medical practitioners via a levy which is collected by insurers. Some have argued that the levy should be lowered as the Commonwealth is recovering in excess of the cost of the ROCS. Retain levy at current level but improve monitoring to enable of the appropriateness of the levy in five years. ROCS Practitioners over 65 who permanently retire can access ROCS. Those under 65 must cease practice for three years before accessing ROCS. If their insurer has contracted with the Commonwealth for the PSS, the insurer must offer cover at $50 per year for the three years until they become eligible for ROCS. The requirement to cap the cost Enable access to ROCS for practitioners permanently retiring before age 65. This would also remove the need for PSS-specific differential charging for run-off cover for such practitioners who have had continuous cover with the insurer for 10 years.
First%20Principles%20Review%20of%20the%20Medical%20Indemnity%20Insurance%20Fund%20-%202.docx