In Ontario Canada, the government reimburses most of their malpractice insurance fees. As a result, they're currently paying 1986 rates:
http://www.health.gov.on.ca/en/pro/programs/ohip/mlp/announc...
I lived there, and know doctors personally. The answer is terrible.
Would that really happen? I know in Australia doctors pay for their own indemnification cover. (http://www.doctorconnect.gov.au/internet/otd/publishing.nsf/...)
Why would it not?
At the margins you make decisions based on a variety of factors. If X costs more than Y, you choose Y. I don't know if, practically, that means 1 potential doctor or 1000 decides not to go to med school. But in a world where we are already short doctors, even the former is "too many".
When you're trying to decide what to do before you start studies, realistically you can't predict your finances and earnings in 10 years. There are some trends you can look at, but that's just one component. Even then it makes more sense in private sector than one funded in very creative and politically dependent ways.
It's an interesting idea, but who pays for it? Taxpayers? Have fun with that politically. The doctors? You'll drive out those on the margins of "doctor or other career". We here in Canada already have a massive doctor shortage everywhere but major cities, so that's a problem.