CEO update

Indemnity insurance practice category changes for 2023/24

The annual negotiation for indemnity insurance practice categories with insurance underwriter MDA National has concluded with several changes confirmed for the 2023/24 year. One of the key changes to the ‘23/’24 Practice Category Guide (the Guide) is the introduction of the YD4M category, which is intended for:

“General dentists or registered Ahpra specialists undertaking removal of impacted and/or unerupted/partially erupted mandibular third molars where none of the other conditions relating to the YD4I and YDX categories apply”.

MDA National contend that the introduction of the YD4M category is necessary and reflects actuarial data that lower third molar extractions are a significant risk factor and that many of these cases will end up being large claims evidenced by reserves that had escalated in prior policy periods. It was envisaged that the new category would be priced at a premium over the existing YD4 category.

The ADAWA Indemnity Committee argued strongly that the introduction of the YD4M category could lead to general dentists deciding not performing lower third molar extraction, even though the procedure is in general practice scope, and potential adverse outcomes for the community, especially where there are limited options for the community to seek these services.

The Committee also challenged the rationale for the YD4M category since it had not been established that the incidence of complexities with third molar extractions, in Western Australia at least, is a trend and not an aberration.

The Committee successfully amended the YD4M category description to specify “impacted and/or unerupted/partially erupted mandibular third molars” and limited the price premium to 10% over the YD4 category. The Committee will be monitoring the insurance claims experience for the YD4M category in the ensuing year.

Other changes to the Guide include:

• YD4I: For general dentists or registered Ahpra specialists in their fourth year or subsequent years after graduation undertaking surgical placement of implants with or without adjunctive bone and soft tissue augmentation where none of the other conditions relating to the YD4M and YDX categories apply.

NOTE: Anyone undertaking placement of implants irrespective of the number should select YD4I where none of the conditions relating to YDX apply

• YDX: For any general dentists or registered specialists undertaking:

1. surgical placement of implants and

2. removal of impacted and/or unerupted/partially erupted mandibular third molars and/or

3. any sinus lift or bone augmentation procedures involving the maxillary sinus and/or nasal floor are carried out

NOTE: Persons undertaking both implants and removal of lower third molars or sinus lift/bone augmentation should select YDX as these are riskier procedures.

• Retirement from practice

Introducing run off pricing for a finite period for anyone ceasing practice permanently before applying an extended reporting period (ERP) endorsement.

The aim is to allow members ceasing practice permanently to select the relevant leave of absence category (YLA) for a period of 4 years prior to applying for an ERP.

This will be a renewable policy for a maximum of 4 years after which the Policy will be endorsed with an ERP subject to the same terms and conditions applicable to ERP currently.

It is envisaged that introducing run off pricing for a finite period will reduce the administrative costs of processing ERP's for members who then return to practice within a short period. The intention is for anyone ceasing practice permanently to select the relevant leave of absence category (YLA) for a period of 4 years prior to applying for an ERP.