The Federal Government has announced the formation of a review panel to examine the effectiveness of its medical indemnity measures package.

Federal Health Minister Tony Abbott will co-chair the panel with Assistant Treasurer Mal Brough. It will include six non-government experts, including medical professionals, and report back to the Government.

The review will cover the Premium Support Scheme, the High Cost Claims Scheme, the Exceptional Claims Scheme, the IBNR Scheme, the Run-off Cover Scheme and the UMP Support Program.

It will also consider developments since the last review of medical indemnity two years ago, including reforms to state-based tort law, proposals for the establishment of a long-term care scheme, the handling of clinical disputes, improvements in claims-handling and the development of improved professional standards.

The schemes have an overall aim of bringing stability and sustainability to the medical indemnity insurance industry and ensuring affordable medical indemnity cover for doctors. The review will look at if and how these objectives have been achieved.