The cost of average medical indemnity premiums has fallen for the first time in three years, Minister for Revenue and Assistant Treasurer, Mal Brough, said today.
Releasing the details of the price monitoring report, undertaken by the Australian Competition and Consumer Commission for the Government, Mr Brough said the benefits of tort law reform, and the Government's other medical indemnity reforms, are being passed on to consumers.
'This is good news for doctors and their patients. The reforms undertaken by the Commonwealth, States and Territories are having a positive impact on the availability and affordability of medical indemnity insurance.'
The average medical indemnity premium fell by 12 per cent in 2003-04, to $5549. This fall reverses the trend of the previous three years. In addition, the cost, number and frequency of claims fell in 2002-03, reversing the trend over the preceding five years.
The report analyses the costs, premiums and financial performance of medical indemnity insurers and assesses the actuarial and commercial justification of medical indemnity premiums.
The report also finds that the premiums of the five medical indemnity insurers monitored are actuarially and commercially justified.
The report into medical indemnity premiums follows the recent announcement that public liability and professional indemnity premiums have also fallen by up to seventeen per cent.
The report is available from the ACCC's website at www.accc.gov.au.