MIPS offer competitive membership fees and as a not-for-profit we try to keep fees low. Each year, MIPS assesses the costs of claims for different types of healthcare practitioners and re-prices membership fees to match the level of risk. You can expect your membership fee to fluctuate slightly each year.

How much does indemnity cost?

The cost of healthcare indemnity is individually assessed for each practitioner. All the medical and dental indemnity providers in Australia provide individual assessments. Dental and medical indemnity insurance costs are among the highest of any profession but also vary significantly so it's very important when doing an indemnity insurance comparison that you obtain an indemnity insurance quote that's tailored to your practice to get an accurate costing. GP indemnity costs and dentist indemnity costs can vary quite dramatically given the broad nature of practice of these specialties.

Reaching a mature fee

Every claims-made policy has a retro-active cover date. You may also hear this referred to as tail cover. The longer your tail, that is the further in the past the retro-active cover date is, generally the more expensive the insurance cover.

retroactive cover tail cover diagram

MIPS takes into account the nature of your practice (that is your risk history) for the past three periods (financial years) and the current period, so four years in total. Any earlier practice and any practice outside of Australia is not considered when calculating your membership fee.

cost of medical indemnity diagram

Medical indemnity cover is claims-made, not claims incurred, so it can cover the risk of several years, not a single period. This is why the price can increase year on year, until you reach the ‘mature membership fee’. The mature membership fee is the fee at which MIPS no longer considers your risk to increase year on year (ie maximum risk for your practice). Once at the mature membership fee, the fee is less likely to change significantly year on year. See further explanation of claims made cover. The mature membership fee is payable when your membership classification and location are the same for four consecutive years (current and three prior periods). If you amend to a higher risk classification (eg commencing private practice), you can expect to see a stepped increase in your membership fee until you reach the mature membership fee.

mature rate explained diagram

Any member can reach the mature fee for their practice, for example a salaried medical doctor working in a hospital who has been in the same role for three years and will be in the same role for next year. They could also be a medical or dental practitioner that has been working in full-time private practice for the last three years and intends to continue in private practice for the next year. Practitioners who arrive from outside of Australia will experience a stepped increase in their membership fee over four membership periods until they reach the mature rate, provided they stay in the same role.


Membership Quote


How your membership fee is calculated

MIPS uses a risk assessment approach when calculating membership fees to reflect the contribution required to appropriately cover your risk arising from both current and past practice. The membership fee is individually calculated based on your membership classification. A simplified example of member classification for a single period is as follows:

Dr Wei
Period: 1 July to 30 June
Category: Dentist
Basis: Hours per week
Primary practice state: ACT
Endorsements: None
+ risk history including billings and salary

Dr Sydnom
Period: 1 July to 30 June
Category: GP Procedural
Basis: Gross private billings
Primary practice state: WA
Endorsements: Minor cosmetic
+ risk history including billings and salary

These examples are simplified and MIPS asks more questions than this to accurately assess your risk. See the Membership classification guide in the Membership Benefits Handbook for detail about how we assess your practice and the range of different bases and endorsements.

When you move from a low-risk classification to a high-risk classification you can expect to see a stepped increase in your membership fee until you reach the mature membership fee. If you move from a high-risk classification to a low-risk classification, the reverse will happen and you will see a stepped decrease in your membership fee.

The following factors are considered when calculating your membership fee:

  • Actuarial advice and recommendations received by MIPS
  • The membership classification that best describes your current and past practice
  • Whether you perform procedural or non-procedural healthcare services
  • Any endorsements applied to your membership
  • Any employer indemnity for healthcare services you provide
  • Your billings and/or salary from any non-employer indemnified (private) practice work you undertake
  • Your current and prior practice locations
  • Your personal claims and registration history
  • Your nominated retroactive cover date
  • The approach to management of risk shown by you
  • The number and nature of claims already accepted in previous membership years
  • The membership benefits that are provided to you
  • The cost of the insurance policies arranged by MIPS
  • Administration costs associated with providing membership benefits
  • Any government taxes or charges such as GST and ROCS levy.

The total costs of membership are determined following consideration of:

  • the current reserves and surplus members’ funds retained by MIPS; and
  • expected investment returns from those funds.

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