The State already supports private practitioners to cover their indemnity insurance costs for their wholly private practice. Government decided in July 2013 to extend for another 5 years the existing arrangements whereby there is a limit or 'cap' on the professional indemnity cover held by consultants in respect of their private practice. The Government also decided to adjust the cap annually in line with the Consumer Price Index.
Under these arrangements, where claims against a consultant working in private practice exceed the agreed limits or caps, the State's Clinical Indemnity Scheme will cover the portion of the claim that exceeds the agreed cap.
The cap rates to 1 July, 2014 are:
- for obstetricians, neurosurgeons and orthopaedic surgeons undertaking spinal surgery to €565,000 per claim (including damages and legal costs) subject to annual aggregate limit of €1,695,000 per consultant.
- for all other specialties, the limit is €1,130,000 per claim (including damages and legal costs) with no aggregate limit.
The Medical Protection Society (MPS), has increased membership subscription rates in Ireland from the beginning of July, 2014, by an average of 42%. The main reason cited by the MPS for this is the increased cost of claims in Ireland, relative to the UK. Departmental officials have met the MPS and the Irish Hospital Consultants Association (IHCA) in this regard. The IHCA has requested that further consideration should be given to reducing the caps to reduce the impact of the MPS increases on its members.
The State Claims Agency (SCA) has undertaken an actuarial analysis on behalf of my Department to assess the cost to the State of further reduction in the caps. My Department will work with the SCA to provide a comprehensive brief to the Minister on the Value for Money and also risk assessment of any proposal in this regard.
It took months of consideration and assessment before Government agreed in 2013 to the continuation of the caps and in the Government decision on the issue it was stressed that a Value for Money review should be undertaken before any change was made to the caps scheme. At a time of huge financial pressure on the public system any change to the caps system must be carefully considered and a Government decision would be needed to effect such a change.
