Government Continues Support for Medical Indemnity Schemes

MDA National is pleased to announce the latest decisions from the Government’s 2018/19 Mid-Year Economic and Fiscal Outlook (MYEFO) to maintain and improve medical indemnity insurance schemes.

The MYEFO decisions show clear intent to continue providing support for the medical indemnity industry and to ensure medical indemnity insurance remains available and affordable for practitioners.

Key highlights from the MYEFO announcement

The Government has stated that:

  • it will maintain support for high cost claims
  • legislation will ensure a level playing field, with ‘universal cover’ obligations applying across the market, so that all medical indemnity insurers are subject to the same requirements
  • all medical specialties will be subject to the same Premium Support Scheme eligibility criteria
  • the legislation underpinning the medical indemnity schemes will be simplified
  • the Premium Support Scheme will be brought in line with other rural assistance programs
  • the Department of Human Services IT systems will be improved to streamline application and regulatory processes, including moving to an automated and efficient online claims system
  • an independent actuarial evaluation will be commissioned on the stability and affordability of Australia’s medical indemnity market for tabling in Parliament in 2020.


The 2018-19 MYEFO announcements are a response to the recommendations from three major reviews of the Government’s Indemnity Insurance Fund (IIF) over the past two years:

  • 2016: Performance audit of the IIF by the Australian National Audit Office
  • 2017-18: First principles review of the IIF
  • 2017-18: Thematic review of Commonwealth medical and midwife indemnity legislation.

MDA National has been actively involved with the Department of Health on the review of the medical indemnity insurance schemes. As advocates for our Members, we will continue to work with the Government and stakeholders on future legislation.