Private midwives who manage homebirths could quit the practice en masse because of new indemnity rules, pushing women towards dangerous freebirths, midwifery groups say.

For 15 years, midwives performing out-of-hospital intrapartum care have been exempt from needing indemnity insurance because indemnity providers have refused to offer it given the risks.

But last year, the Federal Government struck a deal for Medical Insurance Group Australia (MIGA) to provide the cover. It was agreed on the basis that taxpayers would foot 100% of the cost of claims arising from homebirth care.

Midwives who purchase MIGA’s cover must take its ‘option A’ plan, which costs $2400 a year for those earning under $25,000, rising in tiers based on earnings to a maximum of $7500 for those earning $90,000 or more.