The Federal Government’s rescue package for UMP-insured doctors has been challenged by the AMA, which is unhappy with the plan to levy more than half the nation’s doctors.

The Government had agreed to cover the industry’s unfunded liabilities through a levy on surgeons and GPs.  But the only doctors who would have to pay the levy are those who are part of medical defence organisations that have unfunded IBNRs. So the levy would only apply to the 32,000 members of UMP and the 4,200 members of the Medical Defence Association of South Australia.

But the AMA said it won’t accept the as-yet-unspecified levy until the Government puts in place further reforms to reduce malpractice payouts. AMA President Kerryn Phelps said the medical profession is not prepared to fund the industry’s unfunded liabilities.