The Federal Government hopes to save $22.9 million over the next four years by cutting its subsidy for doctors’ medical indemnity insurance.

It says the Premium Support Scheme payment will be reduced from 80 cents in the dollar to 70 cents this financial year, and to 60 cents from 2013/14.

The scheme, introduced in 2004, provides a subsidy when a doctor’s medical indemnity insurance costs exceed 7.5% of their gross medical income.

Medical Insurance Group Australia (MIGA) CEO Mandy Anderson says the cuts are in line with the stability of doctors’ premiums in recent years, and will have no major repercussions.

“The Government’s explanation is that, in its view – since the scheme was introduced – doctors’ premiums have dropped,” she told insuranceNEWS.com.au.

“The message to doctors is that in the Government’s opinion, your income has gone up and your premium has gone down.”

Ms Anderson says fewer than 10% of doctors access the scheme, or reach the “affordability trigger”, and MIGA has not received a single complaint about the cuts.

“The scheme was only ever set up to basically help doctors whose premiums were too high relative to their income,” Ms Anderson said.