2002

 

The Parliament of the

Commonwealth of Australia

 

HOUSE OF REPRESENTATIVES

 

 

 

 

As read a third time

 

 

 

 

 

 

 

 

 

Medical Indemnity Bill 2002

 

No.      , 2002

 

 

 

 

 

A Bill for an Act to make provision in relation to indemnities in relation to the practice of medical professions and vocations, and for related purposes

   

   

   

Contents

Part 1—Preliminary                                                                                                              1

1............ Short title............................................................................................. 1

2............ Commencement................................................................................... 1

3............ Objects of this Act and the medical indemnity contribution legislation 2

4............ Definitions.......................................................................................... 3

5............ Medical defence organisation (MDO)................................................. 7

6............ Member of an MDO........................................................................... 8

7............ Incident-occurring based cover........................................................... 9

8............ IBNR exposure of an MDO............................................................. 10

9............ External Territories............................................................................ 10

Part 2—Commonwealth payments                                                                            11

Division 1—IBNR (incurred but not reported) indemnity scheme     11

Subdivision A—Introduction                                                                                  11

10.......... Guide to the IBNR indemnity provisions.......................................... 11

Subdivision B—Participating MDOs                                                                   12

11.......... Participating MDO............................................................................ 12

12.......... Minister may determine that MDO not a participating MDO............ 12

13.......... Process for determining whether a determination should be made under section 12                13

Subdivision C—Incidents covered by the IBNR indemnity scheme              14

14.......... Incidents covered by the IBNR indemnity scheme............................ 14

Subdivision D—IBNR indemnity                                                                           15

15.......... IBNR indemnity may be payable under either section 16 or 17........ 15

16.......... IBNR indemnity for payment made by MDO or insurer.................. 15

17.......... IBNR indemnity for MDO or insurer in external administration...... 17

18.......... Clarification of circumstances in which IBNR indemnity payable.... 19

19.......... Exceptions......................................................................................... 20

20.......... Payment partly related to treatment of public patient in public hospital 20

21.......... Amount of the IBNR indemnity........................................................ 21

22.......... Minister to determine unfunded IBNR factor for a participating MDO 22

23.......... Process for determining unfunded IBNR factor under section 22..... 23

Subdivision E—Recovery of amount paid to MDO or insurer after IBNR indemnity paid         24

24.......... Recovery if certain amounts paid to MDO or insurer after IBNR indemnity paid    24

25.......... MDO or insurer to inform HIC of certain amounts.......................... 25

26.......... HIC to notify MDO or insurer of repayable amount......................... 25

27.......... Penalty imposed if an amount is repaid late....................................... 26

Division 2—High cost claim indemnity scheme                                            27

Subdivision A—Introduction                                                                                  27

28.......... Guide to the high cost claim indemnity provisions............................ 27

29.......... High cost claim threshold.................................................................. 28

Subdivision B—High cost claim indemnity                                                        28

30.......... Circumstances in which high cost claim indemnity payable.............. 28

31.......... Aggregating amounts paid or payable by an MDO and insurer........ 30

32.......... Exceptions......................................................................................... 31

33.......... Payment partly related to treatment of public patient in public hospital 31

34.......... Amount of high cost claim indemnity............................................... 32

Division 3—Administration of the indemnity schemes                              33

Subdivision A—Introduction                                                                                  33

35.......... Guide to this Division....................................................................... 33

Subdivision B—Applications for, and payment of, indemnity scheme payments           33

36.......... Application for indemnity scheme payment...................................... 33

37.......... Payment date for indemnity scheme payment.................................... 34

Subdivision C—Information gathering and record keeping                         35

38.......... HIC may request information............................................................ 35

39.......... MDOs and insurers to keep relevant records.................................... 36

40.......... Participating MDOs to keep additional records................................. 37

Subdivision D—Overpayments of the indemnities                                           38

41.......... Recovery of overpayments................................................................ 38

Subdivision E—Recovery of repayment or overpayment debt                     38

42.......... HIC may collect money from a person who owes money to a person 38

Division 4—Medical indemnity premium subsidy scheme                      41

43.......... Minister may formulate subsidy scheme........................................... 41

44.......... HIC may request information............................................................ 41

Division 5—Offences                                                                                                    43

45.......... Failing to give information................................................................ 43

46.......... Failing to notify................................................................................. 43

47.......... Failing to keep and retain records...................................................... 44

Division 6—Finance                                                                                                      45

48.......... Appropriation.................................................................................... 45

Division 7—Reinsurance contracts                                                                      46

49.......... Indemnity scheme payments disregarded for purposes of reinsurance contracts      46

Part 3—Contributions towards the cost of providing indemnities         47

Division 1—IBNR (incurred but not reported) indemnity contribution                 47

Subdivision A—Introduction                                                                                  47

50.......... Guide to the IBNR indemnity contribution provisions...................... 47

Subdivision B—Who pays IBNR indemnity contribution                               48

51.......... Who is liable to pay the IBNR indemnity contribution...................... 48

52.......... Exemptions....................................................................................... 49

53.......... Comprehensive insurance cover determination................................. 50

Subdivision C—Determining amount of IBNR indemnity contribution     51

54.......... Annual subscription for base year..................................................... 51

Subdivision D—Annual reassessment of participating MDO’s IBNR exposure              52

55.......... Object of this Subdivision................................................................. 52

56.......... Process for annually reassessing IBNR exposure............................. 52

Division 2—Enhanced UMP indemnity contribution                                  54

Subdivision A—Introduction                                                                                  54

57.......... Guide to the enhanced UMP indemnity contribution provisions....... 54

Subdivision B—Who pays enhanced UMP indemnity contribution             55

58.......... Who is liable to pay the enhanced UMP indemnity contribution....... 55

59.......... Exemptions....................................................................................... 56

Division 3—Administration of the medical indemnity contributions 57

Subdivision A—Introduction                                                                                  57

60.......... Guide to this Division....................................................................... 57

Subdivision B—Payment and collection of medical indemnity contributions                 58

61.......... When medical indemnity contribution must be paid.......................... 58

62.......... Deferral of payment day for medical indemnity contribution............ 58

63.......... Medical indemnity contribution may be paid by instalments............. 60

64.......... Discount for lump sum payment of medical indemnity contribution. 61

65.......... Late payment penalty......................................................................... 63

66.......... Method of paying certain amounts.................................................... 64

Subdivision C—Refunds                                                                                          64

67.......... Refund of overpaid amounts............................................................. 64

Subdivision D—Recovery of contribution debt                                                 65

68.......... Recovery of contribution debt........................................................... 65

69.......... HIC may collect money from a person who owes money to a person 65

70.......... Evidentiary certificates...................................................................... 67

Subdivision E—Information gathering processes                                            68

71.......... HIC may request information............................................................ 68

72.......... HIC must be notified of a change in circumstances etc..................... 69

Division 4—Offences                                                                                                    70

73.......... Failing to give information................................................................ 70

74.......... Failing to notify................................................................................. 70

Part 4—Miscellaneous                                                                                                        71

75.......... General administration of this Act and medical indemnity contribution legislation   71

76.......... Additional functions of the HIC........................................................ 71

77.......... Officers to observe secrecy............................................................... 71

78.......... Act not to apply in relation to State insurance within a State............. 73

79.......... Regulations....................................................................................... 73

 

This Bill originated in the House of Representatives; and, having this day passed, is now ready for presentation to the Senate for its concurrence.

I.C. HARRIS

Clerk of the House of Representatives

House of Representatives

5 December 2002

A Bill for an Act to make provision in relation to indemnities in relation to the practice of medical professions and vocations, and for related purposes

The Parliament of Australia enacts: