Page 1339 - Week 04 - Thursday, 8 May 2014
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6. As at 28 March 2014, there are 103 claims that are open pending, in negotiation, or unresolved in relation to alleged medical negligence against ACT Health.
7. ACT Health is insured through the ACT Insurance Authority (ACTIA). ACTIA engage actuaries to determine the premium for the next policy year based on a complex assessment of the ultimo ACT Health, discounted to reflect the estimated investment returns that ACTIA will receive over the period between receiving the premium and paying the claims. Any further questions regarding these insurance arrangements should be directed to ACTIA.
8. The following table outlines the medical negligence premium for ACT Health over the last 10 financial years by policy year including the current financial year. ACTIA arranges medical malpractice insurance for the Territory, based on information provided to it by ACT Health and other ACT Government entities. ACTIA indemnifies ACT Health for any legal liability associated with an event that falls within the scope of this policy up to, but not exceeding, the amount of the agreed self-insured retention. The terms of the insurance vary from year to year, but in 2012-13 the agreed self-insured retention was an aggregate of $20 million, with a deductible of $350,000 per claim. ACT Health pays an excess on each claim, the amount of this excess varies between $10,000 and $50,000. The premium is predominantly in place to maintain the self insurance budget for the current policy year, reinsurance policy costs, and ACTIA’s administrative on-costs.
|
Policy Year |
ACT Health Medical Malpractice Premium (GST Exclusive) |
|
2003/2004 |
$11,286,627 |
|
2004/2005 |
$12,096,169 |
|
2005/2006 |
$12,398,573 |
|
2006/2007 |
$20,983,538 |
|
2007/2008 |
$21,508,127 |
|
2008/2009 |
$21,818,851 |
|
2009/2010 |
$23,213,223 |
|
2010/2011 |
$23,619,490 |
|
2011/2012 |
$27,316,008 |
|
2012/2013 |
$26,514,479 |
|
2013/2014 |
$29,354,640 |
9. ACTIA manages claims on behalf of the Territory and engages the ACT Government Solicitor’s (ACTGS) office to provide legal support services. The cost of the claims management service is included within the premium that ACT Health pays to ACTIA. A proportion of operating expenses of the Insurance and Legal Liaison Unit and Medico legal claims coordination sub unit can be directly attributed to managing under excess claims and providing assistance to the ACTGS and making payments as directed by ACTGS. This is estimated to be in the vicinity of $250,000 per annum.
10. The ACTGS engages legal, medical or administrative services on ACT Health’s and ACTIA’s behalf. Legal Counsel is engaged by ACTGS in accordance with the requirements under the Law Officers (General) Legal Services Directions 2012. The costs are paid by ACTIA via ACTGS disbursements and are included within ACT Health’s premium cost.
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