Fed: Govt pumps $600 mln into indemnity but may not be enough

AAP General News (Australia)
12-17-2003
Fed: Govt pumps $600 mln into indemnity but may not be enough

The government will fork out more than $600 million to prop up the troubled medical
indemnity system.

But doctors warn it may not be enough to keep them in their jobs.

Taxpayers will spend an additional $181 million to bring down the cost of insurance
for doctors over the next four years.

This is in addition to $438 million already committed by government.

The package includes direct subsidies to insurers to cut premium costs and a guarantee
the government will meet half the cost of claims in excess of $300,000.

But Health Minister TONY ABBOTT lost a battle in cabinet to abolish a controversial
levy, which had public hospital doctors threatening to resign in New South Wales and Queensland.

The indemnity package is the fourth government attempt to resolve the crisis over doctors'
negligence insurance since the near collapse of insurer United Medical Protection last
year.

AAP RTV so/sb/wz/rp

KEYWORD: INDEMNITY (CANBERRA)

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