Medical Indemnity Premiums are expected to rise on average by 10 per cent this year. This could have a significant financial impact on radiologists, especially those with a significant portion of their practice in the private field.
On top of ordinary annual premium increases, from 1 July 2018 the Government has reduced its co-contribution on their “High Costs Claims Scheme” from participating on $300,000+ to $500,000+ claims. This means your insurer will be paying a higher portion of large claims, and their actuaries have crunched the numbers and worked out they need more premium.
Example – $450,000 Claim
2017-18 Policy: Insurer pays $300,000 + ($150,000 * 50%) = $375,000
2018-19 Policy: Insurer pays $450,000
Example - $800,000 Claim
2017-18 Policy: Insurer pays $300,000 + ($500,000 * 50%) = $550,000
2018-19 Policy: Insurer pays $500,000 + ($300,000 * 50%) = $650,000
The AMA, along with multiple Medical Indemnity Providers, have already flagged that premiums will rise due to this change.
What can you do?
Member Advantage, your existing member benefits provider, can offer to review your policy, arrange an alternative quote, and on average save 20% or $3,500 for Clinical Radiologists in Full Time Private Practice.
Radiologists are not meant to be Insurance experts, and the industry is not homogenous.
While AHPRA mandates all Insurers have to offer $20m of Medical Indemnity Insurance, the conditions vary greatly and Member Advantage have identified a range of differences in the existing 4 Direct Insurers that can potentially cause a lot of trouble for Radiologists including some items that are excluded, as well as some items that are only optional and you have to declare and pay a premium to get.
Option 2: Log in to the Member Advantage Portal for more information and contact details
Countrywide Tolstrup Financial Services Group Pty Ltd T/As Member Advantage Insurance Broking holds Australian Financial Services Licence No. 244436 under the corporations Act 2001 to provide General Insurance Broking Services